Homeowners Flashcards
What are the major differences between personal liability and section 2 liability in home owners
No built in loss assessment coverage, no farm exposure option, no personal injury option.
Personal liability covers those of CCC of insured under what age
21 years old
Farm liability does not exclude what
$5000 in receipts in any twelve-month period
Olsen has a farm. In addition to doing what he must be done to successfully tend to his own operation he also does over $50,000 and farm related jobs for other farmers. If Mr. Olson has accidentally destroyed another is farmers Crop while working on it his policy would cover what?
His policy would cover if the custom farming option is in effect
Under HO policy is the limit on computers and sell your phones used in business is to what amount when off premises?
$1500
What is covered under the section 2 of homeowners policy
24 foot sailboat owned by the insured, 80 hp outboard purchased six months after policy renewal, 40 hp inboard outboard rented to the insured. Remember that go carts, are not covered
What are some additional coverages in section 2 homeowners insurance
Claim expenses, first aide expenses, damage to property of others for $1000
Can corporations purchase homeowners insurance
No
Under an HO – three, and insured will receive full replacement cost coverage on a loss to dwelling if:
The insured carries a limit equal to or greater than 80% of replacement cost of the dwelling
What is the limit of coverage D on HO-3?
30% of coverage a
Can motorhomes be covered under section 2 homeowners policies
No
And insured has an HO – three. If I or damages the association clubhouse which results in $700 assessment against the insured, her HO–3 will?
Pay the full amount
Lightning kills a tree on insureds premises. How was the tree be covered under homeowners policy?
Homeowners policy does not cover more than $500 per tree
Maryann just met there buying a home under contract, paying rent until they acquire the title. Are they eligible for homeowners policy?
Yes, if other eligibility requirements are met
Chuck Jones Cole owns a two family dwelling with Chuck’s cousin. How was their homeowners insurance be issued?
Use HO2 or HO3 on one and H04 on the other
The homeowners coverage that covers detached structure jurors such as garage guesthouse fence or storage building is called
Other structures
What are the basic limits under section two of a HO Policy
$100,000 per occurrence/$1000
What special limit under HO policies can NOT be increased?
Silverware and Goldware from $2500 to $25000
What is the theft limit under H08
$1000
The basic limits for loss assessment in HO section 1 and section 2 are:
$1000 each
Can firearms special limits be increased from $2500 to $10,000?
No. However several other special limits can be increased
can new homes under construction be eligible for homeowners insurance
Yes, if otherwise eligible
a corporation owns a dwelling for entertaining clients. Is BMB eligible for homeowners insurance on this dwelling?
No. Corporations are not eligible
Mr Ryan rinses condo to his girlfriend. Is he eligible for homeowners insurance on the condo?
Yes, if otherwise eligible
Insured under an H03 has invited a client to play golf while they discuss a major sale insured hopes to make to the client. Insured, making a practice swing breaks clients leg. Client sues. Judgment is $75,000. Defense cost $35,000. H03 has basic limit of section 2. Policy will pay
$110,000
Insured Has H03 standard adoptable $100,000 coverage A. Fire department has to come into rural area to put out fire at insureds home. The bell insured $975 because fire was outside their district. His policy will pay:
$500
H06 insurance is worry about assessments by his association. He can increased loss assessment coverage to:
Any Amount needed
Is a 5 to 6 family dwelling eligible for a dwelling program?
No
Which covered list did below is found in a DP three and not a DP one
Additional living expenses is not found in a DP one
Items that are kept in the basement are ruined during the flood. Are they covered by a flood policy
No, unless they are property necessary for maintenance and service of the building
VMM coverage in a DP three is suspended by how many days vacancy?
60 days
Joe has a dwelling policy broad form with the coverage a limit of $100,000. He incurs a covered building loss which has an actual cash value of $30,000 and has a replacement cost of $40,000. If the value of his dwelling at the time of loss is $120,000, how much will he recovered ignoring the deductible?
$40,000
Dwelling policy basic form to be characterized as
Limited named perils/ACV
Under the dwelling policy basic form and insured has the dwelling insured for $80,000. There is also a detached garage. If both structures are totally destroyed by a covered peril, how much with the policy pay? The replacement cost of the dwelling is $78,000 and the detached garage is $10,000
$80,000
Broad Form Dwelling Policies (dp2) limit coverage for shrubs trees and plants to:
$500 each/ additional insurance
What is the standard deductible for hurricane in beach area?
Percentage of value of the property
Standard deductible for DPs is:
$500 all parols except hurricane – $500 minimum – 2% to 10% maximum for hurricanes
Eligible for flood insurance, a building must have all of the following:
Walls and roof 50% above ground being eligible community
If the flood of a single premises is to be covered, the flood must inundate:
2 acres of land
DeWelling form of flood coverage covers detached garage is:
For 10% of the dwelling amount within the dwelling limit
The policy provision that gives the insured fit for any brought in coverage in a new form issued within 45 days of inception of the current policy at no premium increase is called:
Liberalization
Flood coverage applies on an actual cash value basis unless:
Insured resides in residence at least 80% of the time
What are the basic limits for personal liability
$100,000 liability/$1000 med pay
