Exam 2 - Homewowner's Policy Section 1

Question 1

What is needed to have homeowners insurance?

Answer 1

Must be the owner of the house

Question 2

Types of Eligible residences of HO

Answer 2

Home, townhome, condo

Question 3

What is the first section of HO Package policy?

Answer 3

Property

Question 4

What is the 2nd section of HO Package policy?

Answer 4

Liability

Question 5

Who are the people insured under HO policy?

Answer 5

Name, Spouse, family, full-time students <24 away from home, 21 yrs or below, foreign student

Question 6

Avoid buying which HO forms?

Answer 6

HO 2 and 8

Question 7

Prefer to buy which HO form?

Answer 7

HO 3, covers certain perils

Question 8

Recommend to buy what HO forms?

Answer 8

HE 7, covers most/all perils

Question 9

Dwell Loss Settlement

Answer 9

funds that an insurance company pays out to the homeowner in the event of a homeowner’s insurance claim

Question 10

Guaranteed RC

Answer 10

ensure the home can be rebuilt at current costs

Question 11

Agreed Value Endorsement

Answer 11

sets a specific value for your home agreed upon by you and the insurer, providing clarity in the event of a loss

Question 12

Requirements of Guaranteed RC Endorsement

Answer 12

less than 30 yrs, insured to 100% RC, value adjust annually

Question 13

What is a type of Personal Property Coverage ?

Answer 13

Blanket coverage

Question 14

Blanket Coverage

Answer 14

type of coverage applies to all personal property in your home without needing to list each item individually

Question 15

What kind of $ do you get back in a Blanket Coverage in loss settlement?

Answer 15

ACV

Question 16

Endorsement to receive full RC for your items w/o depreciation

Answer 16

Personal Property RC Endorsement

Question 17

Limits for jewelry if stolen

Answer 17

1500 max

Question 18

Firearms/Silverware if stolen

Answer 18

2500 max

Question 19

Watercraft/trailer if stolen

Answer 19

1500 max

Question 20

What is needed to schedule valuable items for coverage?

Answer 20

Appraisal

Question 21

Business Property Coverage

Answer 21

HO policy limits on premise - 2500
HO policy limits off premise - 500

Question 22

What endorsement expand coverage for business property?

Answer 22

Home business Endorsement
to.. 10000 ON / 5000 OFF

Question 23

What separate insurance is needed to cover business that has off-premise activities?

Answer 23

Commercial Insurance Policy

Question 24

Excluded Property…

Answer 24

Motorcars, watercraft over 1500, land, business data, credit/debit cards with 500 limit

Question 25

What exception is there to motor cars in excluded properties?

Answer 25

if car is servicing premises or giving handicap help

Question 26

Additional coverages

Answer 26

debris, loss assessment, ordinance

Question 27

Other natural exclusions

Answer 27

flood, earthquake, vandalism

Question 28

Mortgage Clause

Answer 28

ensures that the mortgagee is protected and that their interest in the property is recognized, while also requiring proof of adequate insurance from the homeowner