Homeowners Forms And Structure

Question 1

What’s the difference between HO-2, HO-3, HO-4, HO-5, HO-6, HO-8, and HO-14?

Answer 1

HO-2 = Named Perils on the Dwelling and Personal Property
HO-3 = Open Perils on the Dwelling, Named Perils on the Personal Property
HO-5 = Open Perils on the Dwelling and Personal Property
HO-8 = Limited Named Perils on Dwelling and Personal Property

HO-6 = Condo insurance, Named Perils on both Dwelling and Personal Property

HO-4 = Renters insurance, Named Perils on Personal Property only
HO-14 = Renters insurance, Open Perils on Personal Property Only

Question 2

What are the three types of loss settlement types?

Answer 2

ACV
RC
FRC

Question 3

What is the standard type of loss settlement for a dwelling and personal property?

Answer 3

Dwelling is replacement cost (except HO-8), Personal Property is ACV (except HO-14)

Question 4

What’s the difference between an HO-3 and an HO-5?

Answer 4

Perils only. Both are RC on dwelling and ACV on Personal Property, but HO-3 is named perils and HO-5 is open perils (with burden of proof changing)

Question 5

What is an HO-6 used for, and what is the main endorsement used on the policies?

Answer 5

Condo Insurance. The Unit-Owners Coverage A/C Special Coverage endorsement changes the valuation from ACV to replacement cost.

Question 6

What are the eligibility requirements for a homeowners policy?

Answer 6

A 1, 2, 3, or 4 family dwelling used exclusively for private residential purposes. Townhouses and Condos are as well.

Question 7

What’s the difference between an additional insured and additional interest?

Answer 7

Additional interest is money, additional insured is something other than money

Question 8

How many families are allowed per unit on a homeowners policy?

Answer 8

Two families per unit

Question 9

What are the four types of property coverages?

Answer 9

A - Dwelling
B - Other Structures
C - Personal Property
D - Loss of Use

Question 10

What are the two Liability Coverages?

Answer 10

E - Personal Liability
F - Medical Payments to Others

Question 11

What are the limits for Coverages A, B, C, and D?

Answer 11

A - Dwelling is the listed amount on the Dec sheet
B - Other Structures is 10% of coverage A
C - Personal Property is 50% of coverage A
D - Loss of use is 30% of coverage A

Question 12

What are the standard ISO liability limits?

Answer 12

Coverage E - $100,000 per occurrence
Coverage F - $1,000 med pay per person

Question 13

Who is an insured on a homeowners policy?

Answer 13

The named insured, a resident spouse, relatives living at the home, persons under 21, full time students (per the university) who were residents before moving there and under 24 years old.

Additionally, people responsible for animals or watercraft are insured while taking care of them.