Home owners policy Flashcards

Question

Unit-Owners Form (HO–6)

Answer 1

The Unit-Owners Form is designed for the owners of condominium and cooperative units. The insured may be a renter of the unit, but some insurers may consider renters ineligible for this form. Like the HO–4, the HO–6 has limited coverage because, though the insured may own the particular unit in which they live, they do not own the building in its entirety. Coverage A is provided for the part of the dwelling the insured owns or is otherwise responsible for insuring under the condominium association’s bylaws, including building alterations and improvements. Coverage C is provided for the insured’s personal property while anywhere in the world. Though Coverage B does not appear on the form, if the insured owns other structures on the premises and wants to insure them, the value of the other structures may be included in the Coverage A limit. The dwelling and personal property are insured against the Broad Form named perils. Losses to the dwelling are valued on a replacement cost basis, and losses to personal property are settled on an ACV basis.

Answer 2

The insured condo is damaged by burglars. The insurer pays for the damage to the property, but it does not cover the contents that do not belong to the insured.

Answer 3

fire and lightning, windstorm and hail, riot, aircraft, vehicles, volcanic action, explosion, smoke, VMM, and theft. Most of these have the same limitations seen in the HO–2, except that the Theft peril limits coverage to $1,000 for any one loss and will not cover any off-premises theft. For losses to the dwelling or other structures, insurers will pay up to the functional replacement cost of the damage, meaning the necessary amount to repair or replace the damage with their functional equivalent when common methods and materials are less costly than custom, antique, or obsolete methods and materials.

Answer 4

The insured property is damaged in a hailstorm. Because of the age of the home, the insurer pays for materials that will perform the same function as the original materials.

Answer 5

The insured property and some contents inside are damaged after a deer broke into the home. The insurer pays for damages to the building on a replacement cost basis and damages to personal property on an actual cash value basis.

Answer 6

R is a tenant of a house, and their couch is damaged by accidental discharge of water. The insurer pays the claim on an actual cash value basis.

Answer 7

A stray dog breaks through the door of the N's detached garage and damages personal property stored in the garage. The damage to the door is settled on a replacement cost basis, but damage to personal property is not covered.

Answer 8

J is teaching a family member, T, how to drive J's car. T accidentally drives into J's garage and fence, causing damages. The damages to the garage are covered on a replacement cost basis, but the damage to the fence would not be covered under this form.

Answer 9

HO-3 Coverage A HO-5 Coverage c HO-5 coverage b ho5 coverage a ho3 coverage b

Answer 10

ho-3 coverage c ho 4 coverage c ho-2 coverage b ho-6 coverage c ho 6- coverage a ho2 coverage a ho2 coverage c

Answer 11

The named insured and their spouse if the spouse is a member of the named insured’s household Other residents of the named insured’s household who are: Relatives of the named insured, meaning they are related by blood, marriage, or adoption Under the age of 21 and in the care of any insured, such as a foster child A student enrolled in school full time who was a resident of the named insured’s household before moving out to attend school, provided the student is a relative under the age of 24, or under 21 and in an insured’s care Under Section II – Liability Coverages, the insured also refers to: With respect to a motor vehicle to which coverage applies, persons using the vehicle on an insured location with the insured’s consent and persons while engaged in the employment of the named insured or a resident relative Any person or organization legally responsible for covered animals or watercraft owned by an insured, unless custody of animals or watercraft is in the course of business as defined by the policy or the person or organization has custody without the owner’s consent

Answer 12

Bodily injury includes bodily harm, sickness, and disease, including any required care, loss of services (such as loss of consortium), and death that results.

Answer 13

Property damage includes physical injury to, destruction of, or loss of use of tangible property.

Answer 14

The residence premises is the 1- to 4-family dwelling where the insured resides, including other structures and grounds at that location. On the HO–6 (Condo Unit-Owners Form), the residence premises is the unit in which the insured resides.

Answer 15

Insured location refers to: The residence premises listed on the Declarations page Any other premises used as a residence by the insured, but only if it is either shown in the Declarations or acquired during the policy period Any premises used in connection with a residence premises, such as a boat slip Any non-owned premises where the insured is temporarily residing, such as hotel rooms or summer vacation rentals Vacant land, other than farmland, owned by or rented to an insured Land owned or rented by an insured where a residence is being built for the insured Individual and family cemetery plots or burial vaults of an insured Any part of a premise occasionally rented to an insured for non-business use, such as a banquet hall where a wedding reception is hosted

Answer 16

Any premises used in connection with the insured's business

Answer 17

An employee of an insured whose duties are related to the maintenance or use of the residence premises, including household and domestic services like a gardener or nanny.

Answer 18

The policy understands a business to be a trade, profession, or occupation engaged in on a full-time, part-time, or occasional basis, or any other activity engaged in for money or other compensation. This definition does not include a profession or activity for which the insured received $2,000 or less in the 12 months before the beginning of the policy period. It also does not include volunteer activities, an exchange of home day care services, or rendering home day care services to a relative of an insured.

Answer 19

When a loss occurs, the insured pays an amount equal to the amount of the deductible shown in the Declarations, and the insurer pays the balance of the loss that exceeds the deductible amount, subject to the policy limits. Unless otherwise noted in the policy, all property losses are subject to a deductible. The standard deductible is $250, but the insured may choose a higher or lower amount.

Answer 20

Coverage A does not cover the land on which the dwelling is located.Under Coverage A of most forms, the policy covers the dwelling located on the residence premises shown in the Declarations, including structures attached to the dwelling, such as porches, breezeways, attached garages, and decks. Coverage A protection also applies to materials and supplies located on or next to the residence premises used to construct, alter, or repair the dwelling or other structures. For example, the pile of lumber in the insured’s backyard that will be used to construct a deck off the kitchen is covered by dwelling coverage if it were to be destroyed by a fire. Coverage A does not cover the land on which the dwelling is located.

Answer 21

Because insureds with an HO–6 policy are unit-owners of a condo, rather than owners of the building in its entirety, Coverage A offers different coverage. Coverage applies to: Alterations, appliances, fixtures, and improvements that are part of the building in the covered unit Property the insured must insure under agreement with a property owner corporation or association Other structures located in the residence premises and owned solely by the insured Coverage A on the Unit-Owners Form does not apply to: Land on which the residence premises is located Structures rented or held for rental to any person who is not a tenant, except as a private garage Structures used to conduct business operations

Answer 22

dwelling on residence premises listed on dec page Structures attached to dwelling Materials and supplies on or next to premises and used to construct or repair dwelling or other structures coverage is not provided for land

Answer 23

When a limit of liability is chosen for dwelling coverage, the other three property coverages are automatically issued at limits equaling a specific percentage of the Coverage A limit of liability. If these limits are inadequate, the insured may purchase higher limits. For example, if the value of a detached garage exceeds the automatic limit applying to other structures (Coverage B), the insured may purchase a higher limit by endorsement.

Answer 24

Coverage B applies to other structures on the residence premises that are set apart from the dwelling by a clear space, including structures connected to the dwelling only by a fence, utility line, or similar connection. Sheds, detached garages, and in-ground pools are examples of other structures. Other structures coverage does not cover: Land, including land on which the other structures are located Other structures rented or held for rental to anyone who is not already a tenant of the dwelling, unless the other structure is used solely as a private garage Other structures from which any business is conducted Other structures used to store business property that is owned by someone other than an insured or a tenant of the dwelling The Coverage B limit of insurance is 10% of the Coverage A limit, and it does not reduce the Coverage A limit of liability.

Answer 25

Structures must be separated from the dwelling by clear space Structures may be rented as a private garage Structures may store insured's business property Structures can not be used for business purposes

Answer 26

The Coverage C limit of insurance is 50% of the Coverage A limit of liability. Within this limit, certain types of personal property have limitations. If the personal property is usually located at a secondary residence that is not considered the residence premises, coverage is limited to 10% of this Coverage C limit or $1,000, whichever amount is greater. This limit would apply to a college student’s personal property away at school or property at the insured’s summer home. The same limitation applies to personal property located in a self-storage facility. For the HO–4, which does not offer dwelling coverage, and HO–6, which offers limited dwelling coverage, the insured may select the Coverage C limit.

Answer 27

Money, bank notes, bullion, coins, medals, etc. -200 Securities, deeds, evidences of debt, notes other than bank notes, personal records, manuscripts, passports, tickets, and stamps -$1,500 Watercraft of all types, including their trailers, furnishings, equipment, engines, and outboard motors. Losses to watercraft caused by collision or sinking are excluded-1500 Trailers or semi-trailers not used with any watercraft -1,500 Theft loss to jewelry, watches, furs, and precious or semiprecious stones. On the HO–5 only, loss by misplacing or losing is also covered- 1,500 Theft loss to firearms and related equipment, such as holsters and ammunition. On the HO–5 only, loss by misplacing or losing is also covered- $2,500 Theft loss to silverware, goldware, pewterware, platinum ware, including tea sets, trays, trophies, and flatware made of any of those materials. On the HO–5 only, loss by misplacing or losing is also covered- 2500 Portable electronic equipment that reproduces, receives, or transmits audio, visual, or data signals, and that can be operated by more than one power source, including a motor vehicle’s electrical system. Examples would include a phone, tablet, and computer (as long as they are not permanently installed in a vehicle). This limit applies only if the electronics are located in or on a motor vehicle; otherwise, coverage is provided under Coverage C’s regular limit-$1,500 Accessories for electronics that are located in or on a motor vehicle. This includes antennas, tapes, wires, records, disks, and other media used with electronics-250 Property on the residence premises used primarily for business purposes, such as a computer used by the insured in a home-based business. The limit does not apply to a personal computer used by the insured occasionally when bringing work home from the office that is otherwise used primarily for personal and household purposes-2,500 Property away from the residence premises used primarily for business purposes. This limit does not apply to antennas, tapes, wires, etc. that are used with electronic equipment and located in or on a motor vehicle-1,500

Answer 28

Personal property of an insured covered anywehre in the world may insure property guests or residence employees does not cover property of roomers and boarders

Answer 29

Some items of personal property are not covered under Coverage C, usually because they can be insured elsewhere. Property not covered includes: Property specifically described and insured elsewhere, such as on another policy or by a different part of the Homeowners policy Animals, birds, or fish Motor vehicles, including their equipment and parts However, coverage is provided for motor vehicles not required to be registered for use on public roads that are used solely to service a residence (such as a riding lawn mower), or those designed to assist people with disabilities (such as a motorized wheelchair) Aircraft, including its parts, except that model or hobby aircraft are covered as long as they are not used or designed to carry people or cargo Hovercraft, including its parts Property of roomers, boarders, and other tenants who are not related to an insured Property in an apartment regularly rented or held for rental to others by an insured, except for property covered under the Landlord’s Furnishings Additional Coverage Property rented or held for rental to others off the residence premises Business data stored on paper records or on computers Credit cards and electronic fund transfer cards, except when coverage is provided by an Additional Coverage Water or steam, such as the increased water bill when a toilet breaks and water fills the basement

Answer 30

Personal property of a tenant

Answer 31

Homeowners policies define property damage as physical injury to tangible property, including loss of use of that property. Three types of loss of use coverage are provided under Coverage D for indirect, or consequential, losses: additional living expense, fair rental value, and civil authority prohibits use. Coverage D will not cover expenses resulting from lease cancellation.

Answer 32

If a property loss covered by Section I of the policy makes the residence premises unfit to live in, Coverage D pays for any necessary increase in living expenses incurred by the named insured to maintain the household’s normal standard of living. ALE coverage would pay for the cost of a hotel, the increased cost of food while eating out, and other incidental expenses like laundry. The period during which additional living expenses will be paid is limited to the shortest time required to repair or replace the damage, or to settle elsewhere if the insured must permanently relocate.

Answer 33

If a covered property loss makes that part of the residence premises rented to others unfit to live in, the policy pays for the its fair rental value, less any continuing expenses, while it is unfit. Payment is for the shortest time required to repair or replace the rented portion of the premises.

Answer 34

If a civil authority prohibits the named insured from using the residence premises as a result of direct damage to a neighboring premises by a peril insured against, the insurer would cover additional living expenses and fair rental value, as applicable, for no more than 2 weeks.

Answer 35

indirect losses additional living expenses -necessary increases in living expenses of insured to maintain normal standard of living . fair rental value -value of portion of residence premises rented to others civil authority -additional living expense and fair rental value paid if civil authority prevents use of residence premises due to direct damage to neighboring premises by a covered peril.

Answer 36

Business income

Answer 37

The limit of liability for Coverage D is the total limit for ALE, fair rental value, and civil authority payments. The standard forms do not include a specific limit of insurance, and the limit may vary by state, insurer, policy form, and actual incurred expenses. Common limits for Coverage D are: 30% of the Coverage A limit for the HO–2, HO–3, and HO–5 30% of the Coverage C limit for the HO–4 50% of the Coverage C limit for the HO–6 10% of the Coverage A limit for the HO–8 As long as a covered loss occurs during the policy period, payments under Coverage D may extend beyond the policy’s expiration date.

Answer 38

fireplace installed carpeting tile floors

Answer 39

Detached garage Fence Swimming pool

Answer 40

Money Home computer Furniture

Answer 41

Dwelling coverage-$300,000 Other Structures coverage-30,000 Personal Property coverage-$150,000 Loss of Use coverage-$90,000

Answer 42

If the insured incurs expenses removing debris from a covered loss, the policy will pay from the limits of insurance applicable to the covered property to cover the costs of removal. If the covered loss and debris removal expenses exhaust the coverage limit, debris removal coverage will pay up to an additional 5% of the applicable coverage limit for debris removal. Debris removal coverage will also pay up to $1,000 for the removal of trees felled by windstorm, hail, or the weight of ice, snow, or sleet. To activate coverage, trees must damage a covered structure, block a driveway, or block a ramp designed to assist people with disabilities. The limit for the removal of any one tree is $500. This is paid in addition to policy limits.

Answer 43

5% of the limit applicable to the loss

Answer 44

When the insured’s property has been damaged by a covered peril, this coverage pays the reasonable cost of necessary measures taken to protect covered property from further damage, such as the expenses to place a tarp over a hole in the roof. This coverage does not increase the limit of insurance that applies to the covered property.

Answer 45

Coverage is provided for losses to trees, shrubs, or plants damaged by the perils of fire, lightning, explosion, riot or civil commotion, aircraft, vehicles not owned or operated by a resident, vandalism or malicious mischief, and theft. Most forms pay up to 5% of the Coverage A limit for this coverage. However, the HO-4 and HO-6 provide up to 10% of the Coverage C limit. This limit is provided as an additional amount of insurance and has a sublimit of no more than $500 for loss to any one tree, shrub, or plant. A loss from a windstorm, hail, or the weight of snow, ice, or sleet is not covered by this Additional Coverage.

Answer 46

If the insured is liable for service charges payable to another district’s fire department when it responds to protect the insured property from an insured peril, this Additional Coverage will pay up to $500 without a deductible. Property Removed

Answer 47

If the insured removes covered property from the premises because it is endangered by a covered peril, this coverage will insure against damage to that property for 30 days on an open perils basis. For the purposes of this Additional Coverage, open perils means loss by any cause, with no applicable exclusions. This coverage does not change the limit of insurance that applies to the property being removed.

Answer 48

This Additional Coverage will pay up to $500 of additional insurance, without being subject to a deductible, for: The legal obligation of an insured to pay because of theft or unauthorized use of credit cards Loss resulting from theft or unauthorized use of an insured’s fund transfer card Loss to an insured caused by forgery or alteration of a check or negotiable instrument Loss to an insured caused by good-faith acceptance of counterfeit United States or Canadian currency Coverage does not apply to the use of a credit card, transfer card, or access device by a resident of the household, by someone entrusted with the card or device, or for business purposes. The insurer may investigate and settle any claim, and it has a duty to defend the insured at the insurer’s expense.

Answer 49

If a property owner is part of a corporation or association of property owners, there may be property owned by all of the association’s members, meaning all members are partially liable for covering costs in the event of a loss to the commonly owned property. A property owner’s share of that loss is known as loss assessment. The Loss Assessment Additional Coverage provides up to $1,000 for the named insured’s share of the losses charged by their corporation or association for direct loss to collectively owned property by a peril insured against by the policy. This amount is additional insurance. Assessments charged against the insured by a governmental body are excluded from coverage.

Answer 50

This Additional Coverage provides coverage for: The breakage of glass or safety glazing material that is part of a covered building, storm door, or storm window, including loss caused by earth movement Direct physical loss to covered property caused solely by the pieces, fragments, or splinters of broken glass or safety glazing material Other than losses resulting from earth movement, coverage is not provided if the dwelling was vacant for more than 60 consecutive days immediately before the loss. This coverage is included in the limit of insurance applicable to the damaged property.

Answer 51

Coverage is provided for the abrupt falling down or caving in of a building, or a portion of the building, that renders the building unfit for its intended use. In order to be covered, a direct loss to covered property that involves collapse must be caused by any of the following perils: A peril insured against—usually this refers to the Broad Form named perils, though the HO–5 will refer to the open perils coverage provided by Coverages A and B Hidden decay Hidden insect and vermin damage Weight of contents, animals, people, or equipment The weight of rain collected on a roof The use of defective material or methods of construction Coverage is not provided for the collapse of awnings, fences, patios, septic tanks, swimming pools, foundations, or similar items except when the collapse is a direct result of a building collapse. This coverage is included in the limit of insurance applicable to the damaged property.

Answer 52

Coverage is provided for increased costs the insured incurs due to the enforcement of any ordinance or law that requires or regulates: Construction, demolition, remodeling, renovation, or repair of that part of a covered building damaged by an insured peril The demolition or reconstruction of the undamaged part of a covered building, when that building must be totally demolished because of damage by an insured peril to another part of that covered building The remodeling, removal, or replacement of the portion of the undamaged part of a covered building to complete the remodeling, repair, or replacement to that part of the covered building damaged by an insured peril Coverage does not include loss of value to a covered structure or costs to respond to pollutants. Most forms will allow the insured to use up to 10% of the Coverage A limit for this Additional Coverage. Because the HO–4 does not have Coverage A, the insured may use up to 10% of the limit applying to the Building Additions and Alterations Additional Coverage. This coverage is additional insurance.

Answer 53

Under this Additional Coverage, the policy will pay up to $5,000 for grave markers, on or away from the residence premises, for loss caused by a peril insured under Coverage C. This coverage is included in the limit of insurance applicable to the damaged property.

Answer 54

Provided as an Additional Coverage

Answer 55

If the insured regularly rents out an apartment or unit on the residence premises, or holds it for rental, this Additional Coverage provides up to $2,500 of additional insurance for the insured’s appliances, carpeting, and other household furnishings in the rental unit. These items are insured against the Broad Form named perils, not including theft.

Answer 56

If the tenant insured makes any building improvements or installations at their expense, they are covered under Coverage C. The Additional Coverage provides additional insurance equal to 10% of the Coverage C limit.

Answer 57

The policy does not provide for loss caused directly or indirectly by any of the following perils, even if they are caused concurrently or over a widespread area.

Answer 58

Losses resulting from the enforcement of an ordinance or law regulating the construction, repair, remodeling, renovation, or demolition of a building are excluded, except coverage provided by the Ordinance or Law Additional Coverage.

Answer 59

The policy does not cover losses resulting from: earthquake (including land shock waves or tremors before and after volcanic eruptions), landslides, mudslides, mudflow, subsidence, sinkhole, or any earth sinking, rising, or shifting. If a direct loss by fire, explosion, or theft results from earth movement damage, those ensuing losses are covered.

Answer 60

The exclusion for water refers to damage by flood, surface water, tidal water, waves, tsunami, or overflow of a body of water; water or waterborne material that backs up through sewers or drains, or that overflows from a sump pump; and underground water and waterborne material that exerts pressure on or seeps through a building, foundation, swimming pool, or other structure. Water damage is excluded whether caused by human, animal, or natural forces. However, the exclusions for surface water and underground water do not apply to coverage provided for accidental discharge or overflow of water or steam from a household system or appliance. Direct loss by fire, explosion, or theft resulting from water damage is also covered.

Answer 61

If the failure of power or utility services takes place off the residence premises and causes a loss, this exclusion applies. However, if the off-premises power failure results in a loss caused by a covered peril on the residence premises, that ensuing loss is covered.

Answer 62

There is no coverage for losses if the insured fails to use all reasonable means to save and preserve covered property at and after the time of a loss.

Answer 63

Coverage is not provided for any loss that arises out of any act an insured commits or conspires to commit with the intent to cause loss. In the event of intentional loss, no insured is entitled to coverage, including those insureds who did not cause the loss.

Answer 64

There is no coverage for losses resulting from war. This includes undeclared war, civil war, insurrection, rebellion, revolution, any warlike act by a military force or personnel, destruction or seizure for a military purpose, and discharge of a nuclear weapon (even if accidental).

Answer 65

Damage by any nuclear reaction, radiation, radioactive contamination, or a consequence of any of these is excluded from coverage.

Answer 66

The destruction, confiscation, or seizure of covered property by order of any governmental or public authority is excluded. The exclusion does not apply to action taken at the time of a fire to prevent its spread, if the fire loss would be covered under the policy.

Answer 67

The Homeowners forms do not provide coverage for faulty, inadequate, or defective planning, zoning, development, surveying, design, repair, construction, or renovation. However, if a covered loss to the dwelling or other structures ensues from this faulty work, that ensuing loss is covered.

Answer 68

Governmental action

Answer 69

In the event of a loss to covered property, the insured must: Give prompt notice to the insurer Notify the police in case of a theft loss Notify the credit card, electronic fund transfer card, or access device company in the case of loss covered by the Credit Cards, Electronic Fund Transfer Card or Access Device, Forgery, and Counterfeit Money Additional Coverage Protect the property from further damage by making reasonable and necessary repairs to protect the property, and keep accurate records of repair expenses Cooperate with the insurer’s investigation Prepare an inventory of damaged property that includes the quantity, description, actual cash value, and amount of loss, as well as any applicable bills or receipts Send a signed, sworn proof of loss within 60 days of the insurer’s request, including the time and cause of loss, the interest of the insureds, any other applicable insurance, changes in property occupancy, repair estimates for the damaged building, the inventory, and receipts for additional living expenses

Answer 70

For losses valued on an ACV basis, the policy will pay the actual cash value of the property at the time of loss, but no more than the amount required to repair or replace the damaged property. Even if the policy settles losses on a replacement cost basis, the following pieces of property are always valued at their actual cash value: Personal property Awnings, carpeting, and household appliances Outdoor antennas and equipment Structures that are not buildings Grave markers For buildings and structures valued on a replacement cost basis, the insured is required to maintain insurance to value to at least 80% of the full replacement cost at the time of loss. Following the standard Coinsurance provision terms, if insurance is not kept to value, the policy will pay for the greater of the actual cash value of the damaged part of the building or the proportion of the loss that equals the proportion the policy limit bears to 80% of the building’s replacement cost. To calculate the replacement cost of the building, certain parts of the building are not included, including excavations, foundations, other undersurface supports, underground pipes, and underground drains. The insurer will pay no more than the actual cash value of the damage until actual repair or replacement is complete.

Answer 71

The dwelling

Answer 72

Homeowners policies contain a standard Pair or Set clause. In case of a loss to a pair or set, the insurer may repair or replace any part to restore the pair or set to its pre-loss value, or the insurer may pay the difference between the actual cash value of the pair or set before and after the loss.

Answer 73

If the insurer and insured disagree on the amount of loss, either party may demand appraisal. Each party will choose an appraiser within 20 days after receiving the request, and the two appraisers will select an umpire within 15 days. The appraisers will separately set the amount of loss, and if the amount is agreed upon, it will be the amount of loss payable by the insurer. If they disagree, the umpire will make the final decision. Each party pays for its own appraiser and splits the cost of the umpire.

Answer 74

If the loss is also covered by another insurance policy, the insurer will only pay for their pro rata share of the loss, based on the proportion of the policy limit to the total amount of applicable insurance. The policy is excess insurance over any coverage provided by a service agreement.

Answer 75

If the insured takes legal action against the insurer, the insured must have complied with all policy terms and bring suit within 2 years of the date of loss.

Answer 76

2 years of the loss

Answer 77

The standard Mortgage clause applies to all Homeowners policies. Losses payable under Coverages A or B will be paid to the insured and the mortgagee, as interests appear. If the insurer denies the insured’s claim, the denial will not apply to the mortgagee if the mortgagee: Notifies the insurer of any change in ownership, occupancy, or substantial change in risk Pays any due premium Submits a sign, sworn statement of loss within 60 days of receiving notice that the insured failed to do so The mortgagee must be notified at least 10 days prior to any cancellation or nonrenewal effective date.

Answer 78

If the insurer or insured recover property for which a claim has already been paid, that party must notify the other party of the recovery. The insured may choose whether the property gets returned to or retained by the insured, in which case the loss payment will be adjusted, or if it becomes the insurer’s property.

Answer 79

Even if more than one person has an insurable interest in the covered property, the insurer’s liability for any one loss will not be more than the amount of the insured’s interest at the time of loss or the applicable limit of liability.

Answer 80

The insurer may repair or replace any part of the damaged property with material or property of like kind and quality, as long as the insured is given written notice within 30 days after the insurer received the proof of loss.

Answer 81

Losses are adjusted with the named insured and payable to the named insured 60 days after the insurer receives the proof of loss, unless someone else is named or legally entitled to receive payment.

Answer 82

The insurer may reject property abandoned by an insured.

Answer 83

Coverage will not benefit a person or organization holding, storing, or moving property for a fee.

Answer 84

All volcanic eruptions within a 72-hour period is considered one eruption.

Answer 85

All losses must occur during the policy period.

Answer 86

If the Declarations show a loss payee, the definition of insured will include the loss payee.

Answer 87

The Mobile Home Endorsement may be attached to a Broad Form (HO–2) or Special Form (HO–3) Homeowners policy. The definition of residence premises is changed to mean the mobile home and other structures owned or leased by the insured, as shown on the Declarations. Other changes are made to Section I, and Section II remains unchanged. Coverage A protects the following pieces of property, with losses settled on a replacement cost basis: The mobile home on the residence premises that is used principally as a private residence Structures and utility tanks attached to the mobile home on a permanent basis, including floor coverings, appliances, dressers, and cabinets Materials and supplies located on or next to the residence premises that are used to construct, alter, or repair the mobile home or other structures The Coverage B limit is no more than 10% of the Coverage A limit. However, if that amount is less than $2,000, the insurer must provide a minimum limit of $2,000. The Property Removed Additional Coverage protects the mobile home when it is endangered by a peril insured against and must be removed to avoid damage. The insurer will pay for the reasonable expenses incurred for its removal and return, up to $500, with no applicable deductible.

Answer 88

Earth movement is a common exclusion on all property policies, but coverage may be essential to homeowners. One option for earthquake protection is the Earthquake Endorsement, which will add back coverage for direct physical loss to covered property caused by an earthquake, including land shock waves or tremors surrounding a volcanic eruption. One or more earthquake shocks that occur within a 72-hour period are considered a single earthquake. The endorsement will continue to exclude flood, even if caused by an earthquake, as well as the cost of filling land. Any damage to exterior masonry veneer, such as decorative brick or stone that is not load bearing, is also excluded, unless the insured chooses to add that coverage. Earthquake coverage will not increase the applicable limit of liability. It also requires a deductible, represented as a percentage of the limit of either Coverage A or Coverage C, whichever is greater. The deductible must be at least $500.

Answer 89

covers loss to proeperty insured under coverages a b and c when caused by an earthquake a single earthquake is defined as 1 or more shocks that occur within a 72 hour perood does not cover flood deductible is a percantage of coverage a or c whichever is greater but will not be less than 500

Answer 90

Damage to exterior masonry veneer

Answer 91

Under Coverage C, certain categories of personal property are subject to a limited amount of insurance and protected against a limited number of perils. This endorsement is used to increase insurance limits and broaden the perils insured against that apply to those categories, which include: Jewelry Furs Cameras Musical instruments Silverware and goldware Golfer’s equipment Fine arts Stamp and coin collections Any other property named on the endorsement All scheduled items will be covered by this endorsement specifically, not Coverage C. Typically, coverage is provided worldwide, though some insurers may limit the coverage territory for fine arts to the United States and Canada. The Section I deductible does not apply to scheduled property.

Answer 92

Coverage is provided on an open perils basis. Losses resulting from wear and tear, deterioration, inherent vice, insects or vermin, war, and nuclear hazards are excluded. If fine arts are being covered, losses resulting from the following perils are excluded: The repair, restoration, or retouching process Breakage of art glass windows, glassware, statues, marble, and similar items. Coverage is given back if the loss by breakage is caused by: Fire or lightning Explosion, aircraft, or collision Windstorm, earthquake, or flood Malicious damage or theft Derailment or overturn of a conveyance Any cause while the property is on exhibition at a fairground or any other exposition If stamp or coin collections are covered, exclusions include fading, creasing, scratching, and inherent defect.

Answer 93

On an open perils basis by the endorsement

Answer 94

If fine arts are scheduled, the insured agrees that the art will be handled by competent packers. Newly acquired fine arts are covered, at actual cash value, for up to 25% of the scheduled limit applying to fine arts. For coverage to continue, the art objects must be reported to the insurer within 90 days of acquisition, and the additional premium must be paid. For newly acquired jewelry, furs, cameras, and musical instruments, new items are covered as long as coverage already exists under the endorsement for that class of property. Coverage is provided up to the lesser of 25% of the amount of insurance scheduled for that property or $10,000. For coverage to continue, the objects must be reported to the insurer within 30 days of acquisition, and the additional premium must be paid

Answer 95

This endorsement changes the loss settlement basis from actual cash value to replacement cost for the following property: Personal property insured by Coverage C Awnings, outdoor antennas, and outdoor equipment Carpeting and household appliances Scheduled jewelry, furs, cameras, musical instruments, silverware and goldware, and golfer’s equipment (including that which is scheduled on the Scheduled Personal Property Endorsement), as long as the property is not subject to settlement on an agreed value basis Fine arts, collectors items, articles in bad condition, and articles that are stored and obsolete are not eligible for this coverage. If the cost to repair or replace covered property exceeds $500, the insurer will pay the actual cash value of the property until actual repair or replacement is complete.

Answer 96

The amount of insurance is not reduced except for a total loss of a scheduled article. In the event of a total loss, the insurer will refund the applicable unearned premium, or the insured may apply that unearned premium to the replacement of the article. Fine arts are typically scheduled for their agreed value, the amount agreed to be the value of that article. In the event of a loss, the insurer will pay that agreed value, even if loss only occurs to part of a pair or set. At the insurer’s request, the insured must surrender the article to the insurer if it was not lost or stolen, such as surrendering the remainder of the set. At the insured’s request, that property may be sold back to the insured at a price agreed upon by the insurer and insured. A version of this endorsement will apply these terms to all other categories of insured property, but the standard endorsement has different loss settlement standards for the other categories. Losses to stamp and coin collections covered on a blanket limit basis will be paid using market value, but no more than $250 for one individual article. Losses to all other property (including stamp and coin collections with specific limits) will be paid up to the actual cash value at the time of loss, but no more than the limit or the amount for which the property could be reasonably repaired or replaced. A standard Pair and Set clause applies to this other property as well.

Answer 97

On an unendorsed policy, the Ordinance or Law Additional Coverage lets the insured use up to 10% of the Coverage A limit on covered increased costs. The Ordinance or Law Endorsement allows the insured to increase this percentage to a percentage scheduled on the endorsement.

Answer 98

This endorsement adds an Identity Fraud Expense Additional Coverage to Section I that will pay up to $15,000 for expenses incurred as a direct result of any one instance of identity fraud discovered during the policy period. Identity fraud is the act of knowingly transferring or using, without lawful authority, an insured’s identification with intent to commit or aid another in committing any unlawful activity. Incurred expenses covered by this added Additional Coverage include notary costs to attest to the fraud, certified mail costs to law enforcement or credit agencies, lost income, loan application fees when re-applying for loans, long-distance telephone charges, and reasonable attorney fees. Coverage for lost income is subject to a limit of $200 per day, up to a maximum of $5,000. The endorsement will not provide coverage for identity fraud in connection with a business or expenses incurred due to acts by an insured. A $500 deductible applies. After a loss, the insured must send receipts, bills, and other records that support their claim for covered expenses within 60 days after the insurer’s request

Answer 99

Liability coverage provides protection for the insured’s liability in the event a third party sustains a bodily injury or their property is damaged because of the activities of the insured or the insured’s family members. Covered occurrences include those that take place on, around, or away from the insured premises, and they include injuries or damage caused by the insured’s pets. Coverage is intended to protect against the insured’s non-business, non-automobile liability exposures.

Answer 100

If a third-party claim is made or a suit is brought against an insured for damages because of bodily injury or property damage caused by an occurrence that takes place during the policy period, the policy will pay up to the limit of liability for the damages for which the insured is legally liable, including prejudgment interest awarded against an insured. The policy will also provide a defense, at the insurer’s expense, even if the suit is groundless, false, or fraudulent. The insurer may investigate and settle any claim or suit that it decides is appropriate. The insurer’s duty to defend ends when the Coverage E limit has been exhausted by payment of a judgment or settlement, and defense costs are paid in addition to the limit of liability. The Coverage E per occurrence limit of liability is shown in the Declarations. The standard minimum limit is $100,000 per occurrence.

Answer 101

Pays for claims and suits brought against an insured for bodily injury or property damage pays up to the limit of liability on the declarations page provides a defense at the insurers expense even if the claim or suit is groundless false or fraudulent insurer may investigate and settle its discretion

Answer 102

Bodily injury or property damage

Answer 103

Under this coverage, the policy will pay an injured third party’s necessary medical expenses incurred within 3 years from the date of an accident causing bodily injury, up to the Coverage F limit. Medical expenses include reasonable charges for medical, surgical, X-ray, dental, ambulance, hospital, professional nursing, prosthetic devices, and funeral services. Legal liability, negligence, and fault are not required to activate this coverage. Medical payments are a goodwill coverage to discourage lawsuits. Coverage does not apply to an insured or regular residents of the insured’s household, except residence employees. Instead, Coverage F provides medical payments to a person on the insured location with the permission of an insured, or a person off the insured location if the bodily injury: Arises out of a condition on the insured location or the immediate surroundings Is caused by the activities of an insured Is caused by a residence employee in the course of employment by the insured Is caused by an animal owned by or in the care of an insured The Coverage F limit of liability, which will apply per person for any one accident, will be included on the Declarations page. The standard minimum limit is $1,000 per person

Answer 104

Pays necessary and resonable medical expenses incurred within 3 years of an accident that caused bodily injury medical expenses include charges for surgery x ray dental work ambulance and hospital services professonal nursing does not apply to the insured or regular residents of the insureds household arises out of a contion on the insured location or immediate surrondings is caused by a residence employeein the course of employment by the insured is caused by a rsidence employee in the course of employment by the insured is caused by an animal owned by or in the care of an inured

Answer 105

Supplementary payments cover the insurer’s expenses for defending a claim, along with reasonable expenses incurred by an insured at the insurer’s request. Covered expenses include: Premiums on bonds The insured’s actual loss of earnings when they assist the insurer in the investigation or defense, up to $250 per day Postjudgment interest

Answer 106

This Additional Coverage pays for expenses for providing first aid to others, for bodily injury that is covered under the policy. This does not cover first aid to an insured.

Answer 107

Under this Additional Coverage, the insurer pays the replacement cost, up to $1,000 per occurrence, for property damage caused by an insured to the property of others, regardless of negligence. For example, this would cover the expenses incurred if an insured accidentally damages a lawn mower borrowed from a neighbor. Coverage does not apply to: Property losses payable under Section I Damage caused intentionally by an insured who is 13 years of age or older Damage to any property owned by an insured Damage to property owned by or rented to a tenant Damage arising out of business pursuits engaged in by an insured Damage resulting from an aircraft, hovercraft, watercraft, or motor vehicle However, damage resulting from recreational vehicles that are not owned by the insured and do not require registration are covered

Answer 108

Up to $1,000 is provided for the insured’s share of loss assessments charged by a corporation or association of property owners during the policy period. The loss assessment must be the result of bodily injury or property damage not otherwise excluded by the policy, or the result of liability for an act of an elected director, officer, or trustee who serves on the board of the association or corporation without being compensated. The limit applies per occurrence or per act, and will not apply to assessments charged against the association by a governmental body.

Answer 109

Section II of a Homeowners policy is not intended to be auto liability insurance, so the policy includes exclusions that clarify times when motor vehicles would and would not be covered by Homeowners insurance. Generally, liability for bodily injury or property damage arising out of the ownership, maintenance, operation, loading, or unloading of a motor vehicle is excluded. This includes the failure to supervise someone interacting with the motor vehicle and the insured’s vicarious liability for a minor interacting with the motor vehicle. Coverage is also not provided if, at the time of the occurrence, the motor vehicle was registered for use on public roads, or needed to be registered but was not. Liability arising from vehicles that are rented to others, used to carry people or cargo for a charge, used for any business purpose, or used in or practicing for an organized racing competition is also excluded. Exceptions : Coverage is provided for certain vehicles, depending on their use and type. Liability arising from the following vehicles would be covered by Section II: Vehicles in dead storage on an insured location, meaning they are physically unable to be driven because their batteries have been removed and they are on blocks Vehicles used solely to service a residence, such as a lawn mower Vehicles designed to assist people with disabilities and that are in use or parked on an insured location at the time of an occurrence Recreational vehicles not owned by the named insured Recreational vehicles owned by the named insured, as long as the occurrence takes place on the residence premises or on vacant land considered part of the insured location Children’s toy recreational vehicles that are powered by batteries and owned by the named insured, while on or off an insured location Golf carts, not able to exceed a speed of 25 miles per hour, that are within the legal boundaries of a golfing facility for facility-approved purposes or a private residential community with legal lanes for golf carts

Answer 110

Similar to the exclusion for motor vehicle liability, a Homeowners policy is not designed to be watercraft insurance, though certain watercraft may be covered by the policy. Generally, liability for bodily injury or property damage arising out of the ownership, maintenance, operation, loading, or unloading of a watercraft is excluded. This includes the failure to supervise someone interacting with the watercraft and the insured’s vicarious liability for a minor interacting with the watercraft. Section II does not cover liability resulting from a watercraft that, at the time of the occurrence, is operating in or practicing for an organized race, rented to others, used to carry people or cargo for a fee, or used for any business purpose. The exclusion for organized racing does not apply to sailing vessels or a predicted log cruise. The policy gives coverage back for the personal use of certain types of watercraft. Watercraft liability is covered if, at the time of the occurrence, the watercraft is any of the following: Stored A sailing vessel less than 26 feet in length An outboard motorboat that is 25 horsepower or less An outboard motorboat that is more than 25 horsepower as long as it is not owned by the insured. For example, liability coverage is provided if the insured rents or borrows an outboard motorboat with more than 25 horsepower. An inboard motorboat (including those that power a water jet pump), 50 horsepower or less, that is not owned by the insured. For example, liability coverage is provided if the insured rents or borrows an inboard motorboat with up to 50 horsepower. An inboard motorboat (including those that power a water jet pump) that is more than 50 horsepower as long as it is neither owned by or rented to an insured. For example, liability coverage is provided if the insured borrows an inboard motorboat with more than 50 horsepower.

Answer 111

Liability arising out of the ownership, maintenance, operation, loading, or unloading of an aircraft or hovercraft, including failure to supervise and vicarious liability, is not covered by the policy.

Answer 112

Coverages E and F do not cover bodily injury or property damage arising out of any of the following: Expected or intended injury, even if the resulting injury is different from what was expected or intended. This does not apply to the use of reasonable force to protect people or property. Business pursuits of an insured, including the rendering or failure to render professional services. This exclusion does not apply to the rental or holding for rental of an insured location as an office, school, studio, or private garage. A location that is not an insured location War or insurrection The transmission of a communicable disease by an insured Sexual molestation, corporal punishment, or physical or mental abuse by an insured The use, sale, manufacture, delivery, or possession of a controlled substance, with an exception for lawfully prescribed substances

Answer 113

The guest catches the flu from the insured

Answer 114

Liability for any loss assessment, except as provided under the Loss Assessment Additional Coverage, is excluded. Liability under any contract entered into by an insured is also excluded, unless the contract is a written contract that relates directly to the ownership, maintenance, or use of an insured location. Property damage will be excluded when the damaged property is: Owned by an insured Rented to, occupied by, used by, or in the care of an insured. This is the care, custody, or control exclusion, and the Damage to Property of Others Additional Coverage provides coverage to minimize this exclusion. However, property damage to these kinds of properties that is caused by the perils of fire, smoke, or explosion is covered Bodily injury will be excluded if the injury happens to: Anyone eligible to receive benefits from any Workers’ Compensation, occupational disease, or non-occupational disability law The named insured or any insured of the policy Coverage E will not apply to bodily injury or property damage for which an insured is covered under any nuclear energy liability policy.

Answer 115

Coverage F does not apply to bodily injury: To a residence employee if the bodily injury occurs off an insured location and not in the course of the residence employee’s employment by the insured To any person who is eligible to receive benefits voluntarily provided or required by law under any Workers’ Compensation, occupational disease, or non-occupational disability law From any nuclear reaction, nuclear radiation, or radioactive contamination To any person, other than a residence employee of an insured, who regularly resides on any part of the insured location. This includes roommates, tenants, and boarders, as well as any insured.

Answer 116

In order to receive medical payments, the injured person or someone acting on their behalf must give the insurer a written proof of claim, under oath, as soon as is practical. They must also authorize the insurer to obtain copies of medical reports and records. The injured person must agree to a physical exam by a doctor selected by the insurer when and as often as the insurer reasonably requires.

Answer 117

This condition states that payment by the insurer under Coverage F is not an admission of liability.

Answer 118

Liability coverage provided by Section II is excess coverage over other collectible insurance, unless the other insurance is written specifically to be excess insurance.

Answer 119

Acts as excess insurance

Answer 120

Before a loss, an insured may waive in writing all rights of recovery against any person. If the insured does not waive this right, the insurer may require an assignment of rights of recovery if the insurer makes a claim payment, so that the insurer would be reimbursed for the payment by the third party responsible for the loss. This condition does not apply to Coverage F or the Damage to Property of Others Additional Coverage.

Answer 121

The termination provisions on standard Homeowners forms are the same as those provided by Dwelling forms. These provisions may change based on state laws. The insured may cancel the policy at any time, for any reason, by returning the policy to the insurer or by providing written notice of the date the cancellation takes effect. If the insurer cancels or nonrenews the policy, it must provide advance written notice to the insured. Policies cancelled after being in effect for at least 60 days may only be cancelled for certain reasons, like premium nonpayment, material misrepresentations, or substantial changes in the insured risk. The premium will be refunded on a pro rata basis either with the cancellation notice, when the policy is returned by the insured, or within a reasonable time after the cancellation effective date.

Answer 122

If the insurer makes a change that broadens coverage under the edition of the form used for the policy, and that coverage does not require an additional premium, that change automatically applies to the insured’s policy.

Answer 123

A waiver or change of a provision must be made in writing by the insurer.

Answer 124

To be valid, the insurer must consent to any assignment of the policy.

Answer 125

The insurer will not provide coverage to any insured if an insured has intentionally concealed or misrepresented material information, engaged in fraudulent conduct, or made false statements related to the provided insurance.

Answer 126

If the named insured or resident spouse dies, the insurer will insure their legal representative with respect to the covered premises and property of the deceased.

Answer 127

The endorsement extends liability coverage for the insured’s involvement in a business that the insured does not own, have financial control over, or have a partnership interest in. The pursuit must be named in the endorsement, and is commonly added for teachers. Coverage is excluded for bodily injury or property damage arising out of rendering professional services other than teaching, such as architectural, medical, and beauty services. Bodily injury to an employee is also excluded. If the insured is a member of the faculty or teaching staff of any school or college, bodily injury coverage related to corporal punishment is optional, and must be marked as covered on the endorsement. Coverage is also not provided for bodily injury or property damage arising out of the ownership, maintenance, operation, or negligent supervision of motor vehicles, aircraft, hovercraft, watercraft, and draft or saddle animals and their related vehicles.

Answer 128

The endorsement amends the Section II Watercraft Liability exclusion. Watercraft that would otherwise be excluded may be scheduled on the endorsement, and Coverages E and F would then apply to any resulting liability. Watercraft eligible for liability coverage when scheduled on this endorsement include watercraft with outboard motors of more than 25 total horsepower, watercraft with inboard motors, and sailing vessels 26 feet in length or longer regardless of any auxiliary power. The policy will continue to exclude coverage for liability resulting from watercraft being: Operated in or practicing for any organized race, speed contest, or competition However, this does not apply to sailing vessels or predicted log cruises Rented to others Used to carry people or cargo for a charge Used for any business purpose Bodily injury to any employee whose duties involve the maintenance or operation of a watercraft is also excluded from coverage.

Answer 129

A jet boat

Answer 130

The endorsement adds liability coverage under Coverage E for personal injury, which is defined to include the following: False arrest, detention, or imprisonment Malicious prosecution Wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling, or premises that a person occupies, committed by or on behalf of its owner, landlord, or lessor Oral or written publication of material that violates a person’s right of privacy, slanders or libels a person or organization, or disparages a person’s or organization’s goods, products, or services The policy will pay up to the limit of liability for damages for which an insured is legally liable, and the insurer will provide a defense, even if the suit is groundless or fraudulent. The limit of liability for personal injury coverage will be no more than the Coverage E limit. The Section II Loss Assessment Additional Coverage is revised to pay up to $1,000 of the insured’s share of loss assessments charged against them by a corporation as a result of personal injury, not including assessments charged by a governmental body, regardless of the number of assessments.

Answer 131

Insurance provided by the endorsement does not apply to personal injury that: Is an intentional injury Arises out of oral or written publication of material that the insured knows is false or that took place before the beginning of the policy period Arises out of a criminal act committed by, or at the direction of, an insured Arises out of contractual liability assumed by an insured, other than an indemnity agreement that relates directly to the ownership, maintenance, or use of the premises Arises out of an employment-related offense to the insured’s employee Arises out of or in connection with a business conducted from an insured location or engaged in by an insured. This exclusion does not apply to: The rental of an insured location on an occasional basis, for use only as a residence, or for use in part as an office, school, studio, or private garage An insured under age 21 involved in part-time, self-employed business pursuits with no employees Arises out of civic or public activities performed by an insured for pay Is sustained by the named insured or an insured

Answer 132

Bodily injury to a boarder

Answer 133

On any unendorsed Homeowners policy, the peril for accidental discharge of water or steam excludes most losses caused by mold, fungus, or wet rot, but more comprehensive coverage may be added by this endorsement. Fungi refers to any type or form of fungus, mold, mildew, and any mycotoxins, spores, or their by-products, not including any fungi contained in edible goods or products. The endorsement adds a Fungi, Wet or Dry Rot, or Bacteria Additional Coverage to cover: The loss payable under Section I caused by fungi, wet or dry rot, or bacteria The cost of removing fungi, wet or dry rot, or bacteria from covered property The cost of tearing out and replacing any part of the building or other covered property, as needed, to gain access to the fungi, rot, or bacteria The cost of testing the air or property to confirm that absence, presence, or level of fungi, rot, or bacteria The policy will still exclude losses caused by constant or repeated seepage or leakage of water, or the presence of moisture, except that which is hidden from view within the walls, ceiling, or floor. The endorsement schedules two limits of insurance. The first applies to Section I for property damage resulting from fungi, rot, or bacteria, which will be a sublimit of whichever limit of liability applies to the damaged property. The second is a Coverage E sublimit for damages resulting from the alleged or threatened inhalation of, ingestion of, or exposure to any fungi, rot, or bacteria.

Answer 134

This endorsement is commonly used for studios, offices, or private schools located at the residence premises. Two Permitted Incidental Occupancies Endorsements are available for occupancies located on the residence premises and those located at another residence. When applied to the residence premises, the endorsement will schedule the business, providing a description and noting if the business is located in the dwelling building or in another structure. If it is located in another structure, that structure is protected from direct physical loss by a peril insured against, subject to the limit of liability scheduled in the endorsement. This means that the structure is protected by the endorsement and not by Coverage B. If the business is located at another residence, the endorsement describes the business and location, and expands the definition of insured location to include the described premises. Furnishings, supplies, and equipment used for the scheduled business will be covered by the Coverage C limit of liability instead of a Coverage C special limit. Under Section II, the business exclusion will not apply (meaning coverage is given back) to the necessary or incidental use of the residence premises to conduct the described business. The Section II limits will not apply to bodily injury to an employee arising out of the business, which requires separate insurance.

Answer 135

This endorsement is similar to the Permitted Incidental Occupancies Endorsement, except that it applies specifically to a home day care business. The endorsement notes if the day care is using the dwelling building or another structure on the residence premises, the latter of which is subject to a scheduled limit of liability (rather than protection under Coverage B). Coverage for on-premises day care business personal property will be provided by the primary Coverage C limit. Section II coverages will be revised to apply to liability for bodily injury and property damage arising out of home day care services regularly provided by an insured and for which the insured receives compensation. Though the exclusion for business does not apply, other exclusions are added, such as excluding coverage for: Bodily injury or property damage arising out of the ownership, maintenance, operation, or negligent supervision of draft or saddle animals and their related vehicles, motor vehicles, aircraft, hovercraft, and watercraft Bodily injury to an employee arising out of the business The endorsement alters the Limit of Liability condition to create an aggregate limit for Coverages E and F.

Answer 136

Property damage to property owned by an insured

Answer 137

Per person limit

Answer 138

It extends Section II coverages to the insured's home day care business

Answer 139

A loss resulting from a windstorm

Answer 140

Vacant farm land

Answer 141

Bodily injury to a guest caused by the insured's pet dog

Answer 142

For a covered loss, the standard Coverage D limit for additional living expense, fair rental value, and civil authority prohibits use is 30% of the Coverage A limit. 30% of $200,000 is $60,000.

Answer 143

Property damage to property owned by an insured

Answer 144

Coverage for an insured required by law to test for and treat pollutants

Answer 145

The insured’s kayak is stolen from a public beach while the insured is on vacationThe Homeowners forms do not provide coverage for off-premises theft losses to trailers, campers, or watercraft and their equipment. Watercraft are only protected against windstorm or hail losses when located in a fully enclosed building.

Answer 146

All living expenses incurred when a dwelling becomes uninhabitable after a fire

Answer 147

Claim expenses when a suit is brought against the insured for bodily injury damages

Answer 148

A friend who is renting a bedroom in J's house since it is only three blocks away from work

Answer 149

A model airplane

Answer 150

Excess insurance, unless other insurance is written as excess insurance

Answer 151

Bodily injury resulting from corporal punishment

Answer 152

Functional replacement cost

Answer 153

Vandalism loss to property the insured borrows from a neighbor

Answer 154

A boarder Homeowners policies will exclude roommates, tenants, boarders, and other regular residents of the household from receiving medical payments, except for residence employees.

Answer 155

Payments are subject to the policy deductible

Answer 156

Fungi intended for consumption

Answer 157

A tenant-occupied house used exclusively as a rental property

Answer 158

Personal Injury Liability

Answer 159

A loss resulting from a windstorm

Answer 160

Abandonment