Homeowners Insurance Flashcards
Package Policies or Multiline Policies
Policies that contain both property and casualty coverages in a single contract
Multiline Companies
Companies that issue both property and casualty insurance policies
Homeowners Policy is a multiline policy because?
It provides property and liability insurance in a single policy
By obtaining property and liability coverage in one policy, the insured is more likely to avoid:
- gaps in coverage
2. overlapping of coverages that often happen when several monoline policies are purchased instead of a package policy
Multiline policies or package policies are advantageous to the insurance company because:
- it means fewer contracts and records
- it simplifies billing
- it eliminates duplicated services
These savings mean the price will be lower than the cost of separate policies offering equivalent coverage.
What are the two sections of homeowners policy?
- Section I provides property insurance
2. Section II provides liability and medical payments insurance
How are each homeowners forms different from each other?
Each homeowners forms vary in extent of coverage.
Each of the forms provides identical liability coverage, but the property coverage varies with the homeowners form selected.
How many different homeowners forms are there? And what are they called?
- 7
2. HO-2, HO3, HO-4, HO-5, HO-6, and HO-8
Explain the form, HO-2 (HO 00 02)
The HO-2 also known as broad form, provides broad coverage for the dwelling and personal property.
The covered perils are similar to those covered by the DP-1 with the extended coverage perils and V&MM coverage.
Breakage of glass and theft are also covered.
In addition, it broadens certain perils and adds others.
Explain the form, HO-3 (HO 00 03)
The HO-3, also known as special form, provides open peril coverage for loss to the dwelling and other structures.
It provides broad coverage for personal property, which is identical to the HO-2’s coverage of personal property.
Explain the form, HO-4 (HO 00 04)
The HO-4, also known as contents brad form, insures tenants - people who do not own the building where hey reside.
It provides broad coverage for personal property only that is similar to the HO-2’s and HO-3’s broad coverage of personal property, and no coverage for the dwelling.