Chapters 22&23: Homeowners Insurance, including Personal Liability

Question 1

Key points of HO-4 Renter’s Insurance

Answer 1

• Only 40% of renters purchase renter’s insurance
• Those who do often purchase only because it is a stipulation in the rental agreement (the landlord requires it!)

Question 2

Why purchase renter’s insurance?

Answer 2

• It covers all the contents of your apartment - what would your clothes, electronics, furniture, and appliances be worth if you needed to replace them!
• It covers you for all perils - lost, stolen, or damaged whether on premises or somewhere else
• It provides liability coverage
• It’s relatively cheap - approximately $10-$20 per month

Question 3

Exception to Renter’s Insurance

Answer 3

It may not cover expensive jewelry, cameras, or fine art

Question 4

Following persons are considered “insureds” under the HO-3 policy:

Answer 4

• Named insured and spouse
• Resident relatives
• Other persons under age 21
• Full-time student away from home

Question 5

Section II in HO-3 policy will also consider the following as covered:

Answer 5

• Any person responsible for covered animals or watercraft
• A person using your covered motor vehicle (ex. someone using a lawn mower to mow your lawn)

Question 6

Coverage A

Answer 6

Covers the dwelling on the residence premises and any structure attached to the dwelling

Question 7

What is included and excluded in Coverage A?

Answer 7

• Included: Material intended for construction
• Excluded: Land

Question 8

Coverage B

Answer 8

Insures other structures on the residence premises. The amount of coverage is based on the amount of insurance in coverage A

Question 9

What is included and excluded in Coverage B?

Answer 9

• Included: Detached garage, tool shed, and horse stable.
• Excludes: Structures that are rented out or used for a business

Question 10

Coverage C

Answer 10

Insures personal property is owned or used by an insured

Question 11

What property is not covered in coverage C?

Answer 11

• Articles with other specific coverage
• Animals, birds, and fish
• Motor vehicles
• Property of roomers, boarders, and other tenants who are not related
• Credit cards and similar items

Question 12

Exclusions for insurance for dwellings and structure

Answer 12

• Collapse
• Freezing
• Fences, pavement, patio, and similar structures
• Dwelling under construction
• Vandalism and malicious mischief (if vacant for 60+ days)
• Mold, fungus, or dry rot
• Other (basically normal wear and tear and animals/pests)

Question 13

Coverage E

Answer 13

Protects an insured when a claim or suit for damages is brought because of bodily injury or property damage allegedly caused by and insured’s negligence

Question 14

Coverage E examples

Answer 14

• Your dog bites a small child
• While burning leaves, you set fire to your neighbors house
• A guest in your home trips on a loose carpet
• You carelessly break an expensive vase while shopping

Question 15

Coverage F

Answer 15

Provides medical payments to others who are accidentally injured while on an insured location, by the activities of an insured or by an animal owned by an insured

Question 16

Coverage F examples

Answer 16

• A guest slips into your home and breaks an arm
• A neighbor’s child falls off a swing in your backyard and is injured
• You are playing golf and accidentally injure another golfer
• Your dog bites a neighbor