Chp. 24 Quiz - Property Insurance Flashcards
What kind of policy is a Business Owner’s Policy (BOP)?
Package
If Joe insures his home for 60% of its replacement value and suffers a $20,000 loss, how much will the insurance pay?
$15,000
Which policy is the most widely used homeowner’s policy?
HO-3
Replacement cost coverage on a home’s contents usually costs an additional
10% - 15%.
f a property owner has a laptop computer used for business purposes that is stolen from an out-of-town hotel room, how much can the owner expect to receive from the insurance company to cover the loss?
$500
What is one of the things a property owner should do to determine how much insurance to purchase?
Determine the cost to replace the home if it was completely destroyed.
For consumers who are unable to purchase insurance from individual insurance companies, the New York Property Insurance Underwriting Association (NYPIUA) offers policies for
fire coverage.
A policy that has several types of coverage in one policy is
a package policy.
Generally, personal liability limits of ____________ per occurrence and medical payments limits of __________ per person are sold to the public.
$100,000, $1,000
If a property owner has a computer that is used for business purposes, what is the typical coverage limit in New York if the computer is stolen?
$2,500.
What type of coverage is always excluded from homeowners’ and tenants’ policies?
Flood
If a policyholder has expensive jewelry, furs, cameras, or a coin collection, he or she should consider insuring them separately with
a personal articles floater.
If an HO-6 policy covers the contents of a condominium, how are the condo building and common areas covered?
The condo association must carry policies to cover those areas.
A(n) _________________ policy is a type of liability insurance available to individuals and companies to protect them against claims above and beyond the amount covered by their primary policies or for claims not currently covered.
umbrella
Who pays an insurance policy’s deductible?
Policyholder
