Homeowner's Policy Flashcards
What is the primary difference between Dwelling policies & Homeowner’s?
Homeowner’s has liability coverage
___ is a multiline policy because it provides Property & liability insurance in one policy.
Homeowner’s Policy
In a homeowner’s policy, where would you find property corverage?
Section 1
In a homeowner’s policy, where would you find personal liability?
Section 2
What are the 6 coverage forms in a homeowner’s insurance policy?
HO2: Broad HO3: Special HO4: Contents Broad HO5: Comprehensive HO6: Condominium Unit Owners HO7: Modified Coverage
What type of dwelling is covered under a homeowner’s policy?
Private Home
What types of forms may only be written for an owner occupant?
HO2
HO3
HO5
HO8
What type of business is allowed in a homeowner’s policy?
Small incidental services
___ Broad form provides property & Liability coverage on a named peril basis to owner-occupied homes of one-, two-, three-, or four family dwellings.
HO2
___ special form (pen peril coverage) providing coverage on property & liability coverage to owner-occupied homes of one-, two, three, or four- fmaily dwellings.
HO3
___ provides open peril coverage on the dwelling, other structures, & the loss of use (or additional living expenses) resulting from covered damage to the dwelling & other structures.
HO3
___ also known as the tenant’s broad form.
HO4
___ provides coverage for personal property & liability to a renter of a single-family home, condominium, apartment, or mobile home.
HO4
___ provides the same coverage as the HO2 form except dwelling (Coverage A) & other structures (Coverage B)
HO4
Which coverage form also provides coverage for improvements owned by the tenant (such as a stoorage building tenant added in backyard)
HO4
___ also known as the condominium unit owners form.
HO6
What form is designed for condominium or cooperative unit owners to cover their personal property?
HO6
What is the amount for the loss assessment for HO6?
Up to $1,000
What does HO6 cover?
Parts of the building (walls in) that are the respnsibility of the condominium unit owner.
___ is also known as the modified form.
HO8
___ is for owners of dwellings who can’t insure their old properties on a replacement cost basic because the replacement cost would exceed market value.
HO8
What form can be used for homes of unusual construction that may be difficult to value?
HO8
What is restricted under HO8?
Theft
Property away from premises
All coverage forms include a basic deductible of $250 except…
Fire Department Service Charge
Credit Card
Forgery
What does property coverages include?
Coverage A: Dwelling Coverage B: Other Structures Coverage C: Personal Property Coverage D: Loss of Use Coverage E: Additional Coverages
What coverage is provided on forms HO2, HO3, HO5, & HO8?
Coverage A: Dwelling
What coverage is a basic amount of insurance equal to 10% of the Coverage A limit?
Coverage B: Other Structures
What forms are not applicable for Coverage B: Other Structures?
HO4: Tenant’s Broad
HO6: Condo’s
___ is equal to 50% of the Coverage A limit in HO2, HO3, HO5, & HO8 policies.
Coverage C: Personal Property
Coverage C: Personal Property is equal to ___ of Coverage A: Dweilling.
50%
___ can’t be less than 40%, but can be higher.
Coverage C: Personal Property
What is the minimum amount of coverage under Coverage C can HO4 & HO6 select?
$6,000
___ is for either addiotional living expenses or fair rental alue if the premises become uninhabitable due to a covered loss.
Coverage D: Loss of Use
Under Coverage D: Loss of Use, HO2, HO3, & HO5 is usually ___ of Coverage A: Dwelling.
30%
Under Coverage D: Loss of Use, HO4 is ___ of Coverage C.
30%
Under Coverage D: Loss of Use, HO6 is ___ of Coverage C.
50%
Under Coverage D: Loss of Use, HO8 includes ___ Coverage A Dwelling.
10%
___ is provided to an insured under this section if a claim is made or a suit is brought against the insured for damages due to bodily injury or property damage of others.
Coverage E: Personal Liability
Under Coverage E: Personal Liability, the basic limit of liability provided by a homeowner’s contrat is how much under the homeowner program?
$1,000 & may be increased for an additional premium
Which coverage will the insurer pay necessary medical expenses incurred or medically discovered within 3 years from the date of an accident that causes bodily injury?
Coverage F: Medical Payment to Others
___ are reasonable charges for medical, surgical, x-ray, dental, ambulance, hospital, professional nursing, prosthetic devices, & funeral services.
Medical Expenses
What coverage is provided without the necessity of proving fault or liability for the accident-causing injury?
Medical Payments
Who is covered under Coverage F: Medical Payments to Others in the insured’s home?
Residence employees
What is the basic limit of liability provided by Coverage F: Medical Payments to Others?
$1,000 per person & may be increased for an additional premium
What are the 3 sets of perils in the Homeowner’s Policy Coverage forms?
- Basic Perils
- Broad Perils
- Open Perils
___ is used by the HO8modified form for special risks.
Basic Perils
What are the automatic coverages provided by Basic Perils?
Fire Lightening Windstorm or Hail Explosion Volcanic Erruption Riot or Civil Commotion Aircraft Vandalism/ Malicious Mischief (V&MM) Vehicles Smoke Theft
___ used by the HO2 Broad form.
Broad Perils
___ also used by the HO4, HO6, & the personal property coverge of HO3.
Broad Perils
What types of loss does broad perils provide?
Weight of ice, snow, or sleet
Accidental discharge or overflow of water or steam
Freezing of plumbing or related systems
Rupturing of heating, air conditioning, sprinkler, or hot water system
Falling objects
Artificially generated electric current
Loss from smoke & vehicles
___ insure against all risks not specifically excluded by the policy.
Open Perils
___ coverage is used by the HO3 Coverage A & B only & the HO5.
Open Perils
What are the duties after loss?
Notify the insurer promptly. Notify the police in case of theft. Notify credit card company and bank. Protect property from further damage. Cooperate with investigation. Prepare inventory of damaged property. Shaw damage, provide documentation, & submit to an examination under oath. Submit signed, sworn proof of loss. A statement swearing to the facts of the loss.
What is replacement cost minus depreciation?
Actual Cash Value
What property is settled on an actual cash value basis?
Personal Property Awnings Carpeting Household appliances Outdoor antennae Outdoor equipment (attached & detached) Grave markers
Under replacement cost, buildings covered under coverages A & are subject to ___.
Coinsurance
___ is how a loss to the insured property will be valued at the time of loss.
Loss Valuation
___ is a factor in determing the premium charged & the amount of insurance required.
Loss valuation
___ is a single property inaurance policy that provides coverage for multiple classes of property at one location.
Blanket insurance
___ is a property insurance policy that covers a certian kind or unit of property for a certain amount of insurance.
Specific Insurance
___ is dfined as the cost to replace damaged property with like kind & quality at today’s price, without any dedction for depreciation.
Replacement Cost
Insured carries coverage of at least ___% or cost to replace dwelling, the insurer will pay the replacement cost of damge to the dwelling in the event of a partial loss (the policy limit is paid in the event of total loss).
80%
___ may be developed by payroll, receipts, or property taxes.
Rates
___ is a clause included in many property & inland marine policies, in which the insurer is not obligated to pay for the total value of a set of items if only one item has been lost, damaged, or destroyed.
Pair & Set Clause
What are the endorsements to Section I of Homeowner’s Policy?
A personal property replacement cost
Scheduled personal property
Earthquake Coverage
___ changes the valuation basis for Coverage C to replacement cost.
A personal property Replacement Cost
___ broader coverage for jewelry, furs, cameras, musical instruments, silverware, fine art, golf equipment, & stamp or coin collections may be provided attaching an endorsement instead of writinga seperate personal articles floaters policy.
Scheduled Personal Property
___ is excluded under homeowner’s forms, but coverage can be added with the earthquake endorsement.
Earthquake coverage
What does earthquake coverage endorsement include?
Earthquake
Landslides
Volcanic Erruptions
Earth movements
What are the endorsements for Section II of a homeowner’s policy?
Perspnal Injury
Business Pursuits
Limited fungi, wet, or dry rot
What does personal injury endorsement cover?
False arrest, detention, or imprisonment Malicious prosecution Libel Slander Defamation of character Invasion of Privacy Wrongful Eviction Wrongful entry
Coverage A: Dwelling HO2 coverage amount is \_\_\_ HO3 coverage amount is \_\_\_ HO4 coverage amount is \_\_\_ HO5 coverage amount is \_\_\_ HO6 coverage amount is \_\_\_ HO8 coverage amount is \_\_\_
HO2: $15,000 minimum HO3: $20,000 minimum HO4: Not covered HO5: $30,000 minimum HO6: $1,000 HO8: $15,000 minimum
Coverage B: Other Structures HO2 coverage amount is \_\_\_ HO3 coverage amount is \_\_\_ HO4 coverage amount is \_\_\_ HO5 coverage amount is \_\_\_ HO6 coverage amount is \_\_\_ HO8 coverage amount is \_\_\_
HO2: 10% of A HO3: 10% of A HO4: Not covered HO5: 10 % of A HO6: Part of A HO8: 10% of A
Coverage C: Personal Property HO2 coverage amount is \_\_\_ HO3 coverage amount is \_\_\_ HO4 coverage amount is \_\_\_ HO5 coverage amount is \_\_\_ HO6 coverage amount is \_\_\_ HO8 coverage amount is \_\_\_
HO2: 50% of A HO3: 50% of A HO4: $6,00 minimum HO5: 50% of A HO6: $8,000 HO8: 50% of A
Coverage D: Loss of Use HO2 coverage amount is \_\_\_ HO3 coverage amount is \_\_\_ HO4 coverage amount is \_\_\_ HO5 coverage amount is \_\_\_ HO6 coverage amount is \_\_\_ HO8 coverage amount is \_\_\_
HO2: 30% of A HO3: 30% of A HO4: 30% of C HO5: 30 % of A HO6: 50% of C HO8: 10% of A
___ to professional liability or to injuries to fellow employees.
Business Pursuits
What form(s) are available for Limited fungi, wet or dry rot, or bacteria endorsements?
HO3 & HO5
___ adds additional liability caverage to their homeowner’s policy for their outboard motorboats over 25 horsepower, inboard motorboats, & sailboats more than 26 feet in length.
Watercraft Endorsement
What provides coverage for vicarious parental liability occurining when the watercraft is used by a minor or a child?
Watercraft Endorsement
What are the exclusions for a watercraft endorsement?
Bodily injury to an employee of the injured who is working.
Watercraft used to carry passengers for a fee or rented to others.
___ covers buildings & other structures for child or adult homecare business use at the insured’s residence.
Home day care coverage.
What endorsement changes the limit for Coverage E liability from an occurence limit to an annual aggregate?
Home Day Care Coverage
What is the prpose of the causes of loss form that lists specific exclusions?
To state which perils are insurade against.
Which Homeowner form covers fixtures, installations, and improvements made or acquired at the insured’s expense?
HO-4
Who created The National Flood Insurance Program?
The United States Congress
