Homeowner Insurance Definitions

Question 1

Homeowner Insurance

Answer 1

Sold as a personal package policy designed to cover a broad range of exposures related to owning or renting a part of a home

Question 2

HO-2

Answer 2

Named peril form

Burden of proof for a covered loss is on the insured.

Question 3

HO-3

Answer 3

“Special Form”

combines broad and open perils.

Burden of proof that the loss is excluded is on the insurance company.

Question 4

HO-4

Answer 4

Renters insurance

Broad Form coverage for contents.

Designed to cover the contents of a tenant living in a non-owned structure.

Does not provide coverage except for the improvements and betterments that the tenant may have made to the structure at his or her expense

Question 5

HO-5

Answer 5

Deluxe Policy - “Comprehensive Form”

Broadest Homeowner form

Open peril coverage on both buildings and contents

Question 6

HO-6

Answer 6

Broad Form - “Unit-Owners Broad Form”

Condominium owners

Structural portion of the condo and contents owned by insured.

Improvements and betterments covered by the broad perils

Question 7

HO-8

Answer 7

“Modified Coverage Form”

Most limited HO form

ACV Basic peril coverage for buildings and contents paid

Question 8

Loss of Use

Answer 8

Combines Fair Rental Value and Additional Living Expense.

indirect losses such as rent, food, and laundry, which result from a covered property loss

Question 9

Liability Coverage

Answer 9

Third party coverage

Medical bills
Property Damage
Lost wages
Pain and Suffering
inconvenience caused by an insured

Question 10

Occurrence

Answer 10

An incident

Repeated or continuous exposure to similar harmful conditions

Question 11

Bodily Injury

Answer 11

bodily harm
sickness
disease
death

Question 12

Property Damage

Answer 12

Physical damage to property including loss of use

Question 13

Coverage A

Answer 13

Dwelling

Replacement cost
80% coinsurance clause
10% of Coverage A provided for necessary upgrades

Question 14

Coverage B

Answer 14

Other structures

10% Coverage A - 1-2 family dwellings
5% Coverage A - 3-4 family dwellings

Question 15

Coverage C

Answer 15

Personal Property
50% Coverage A - 1-2 family dwellings
30% Coverage A - 3 family dwellings
25% Coverage A - 4 family dwellings

Question 16

Coverage D

Answer 16

Loss of Use
30% Coverage A - HO-2, 3, 5
30% Coverage C - HO-4
50% Coverage C - HO-6
10% Coverage A - HO-8

Question 17

Coverage E

Answer 17

Section II - Personal Liability

Pays those harmed by the occurrence on behalf of insured when legally liable.

Legal defense paid without limit

Question 18

Coverage F

Answer 18

Section II - Medical Payments to Others

pays medical bills incurred by others in accident regardless of fault or liability.

• min. limit of $1000/person/occurrence
• will pay if claimed within 3 years of DOL
• does not pay for insureds or pain and suffering