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Property And Casualty > Homeowners Insurance > Flashcards

Homeowners Insurance Flashcards

0
Q

To be eligible for Homeowners insurance, the named insured must be what?

A

The named insured must be the owner occupant of the dwelling or the condo or a renter who maintains a residential occupancy.

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1
Q

What is the HO-2 form?

A

The HO-2 form is broad form, and provides broad coverage for the dwelling and for personal property. The covered perils are similar to the DP-1 form with the extended coverage perils and V&MM coverage. Breakage of glass and theft are also covered.

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2
Q

What does section one of a homeowners policy contain?

A

Property insurance

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3
Q

What does section 2 of a homeowners policy contain?

A

Liability and medical payments insurance

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4
Q

What is the HO-2 form?

A

The 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.

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5
Q

What is the HO-3?

A

Special form, provides open peril coverage for loss to the dwelling and other strictures. It provides broad coverage for personal property.

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6
Q

What is the HO-4?

A

Contents broad form, insured tenants and provides broad coverage for personal property only.

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7
Q

What is the HO-5?

A

The comprehensive form, provides open peril coverage for both the dwelling and other structures and personal property.

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8
Q

What is the HO-6?

A

Unit owners form, provides broad coverage on the personal property of condominium owners, and very limited dwelling coverage.

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9
Q

What is the HO-8?

A

The modified coverage form, designed for older homes with replacement values that may far exceed their market values. It provides basic coverage on the dwelling and personal property similar with the extended coverage perils and V&MM coverage but it also includes certain restrictions on the valuation of losses

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10
Q

What are the four property coverages provided by the homeowners policy under Section 1?

A

Coverage A - dwelling
Coverage B - other structures
Coverage C - personal property
Coverage D - loss of use

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11
Q

What does coverage A ( dwelling ) cover?

A

Covers the dwelling and structures attached to the dwelling as well as materials and supplies for repair and construction of those structures if they are located on or next to the residence premises.

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12
Q

What does Coverage B ( other structures) cover?

A

Covers buildings on the described premises that are separated from the dwelling by clear space.

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13
Q

What two coverages are not included in the HO-4?

A

Coverage A (dwelling) and Coverage B ( other structures )

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14
Q

What does the HO-6 (unit owners form) limit Coverage A for?

A
  1. Alterations, appliances, fixtures, and improvements that are part of the building containing the residence premises.
  2. Items of real property pertaining solely to the residence premises
  3. Property that is the insureds responsibility under a condo associations agreement
  4. Structures other than the residence premises owned solely by the insured at the location of the residence premises.
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15
Q

What is the standard coverage A limit for the HO-6?

A

$1000

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16
Q

What does Coverage C (personal property) cover?

A

Provides coverage for personal property owned or used by an insured while it is anywhere in the world. At the insureds request, coverage will also apply to property owned by others while in the part of the residence premises occupied by the insured or to the property of a guest or resident employee while in any residence occupied by the insured.

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17
Q

How long does coverage apply for property being moved from the residence premises to a new principal residence?

A

Full 30 days from the start of the move

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18
Q

How long is personal property covered if property is moved from the residence premises because the residence is being repaired or is unfit to live in?

A

Full coverage for as long as it is at the temporary residence.

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19
Q

What does Coverage D ( loss of use ) cover?

A

Coverage D provides two types of coverage.

  1. If a covered property loss makes the residence uninhabitable, the policy will cover additional living expenses related to maintaining the insureds normal standard of living
  2. If a covered loss to the insureds property makes a part of the residence premises uninhabitable that is rented to others or held for rental by the insured, the policy will cover the loss of fair rental value, less and expenses that are not required while the premises is uninhabitable.
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20
Q

What additionally coverage does the homeowners form contain?

A
  1. Debris removal
  2. Reasonable repairs
  3. Trees shrubs and other plants
  4. Fire dept service charge
  5. Property removed
  6. Credit card, electronic fund transfer card or access device, forgery, and counterfeit money
  7. Loss assessment
  8. Glass or safety glazing material
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21
Q

What is debris removal under the homeowners policies?

A

Pays expenses to remove debris from covered property if a covered peril caused the loss and ash or other partials from a volcanic eruption caused direct loss to covered property.

Debris removal is included in the policy limit however up to an additional 5% of that limit may be applicable.

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22
Q

Which homeowners forms have the additional coverage for collapse?

A 
HO-2
HO-3
HO-4
HO-5
HO-6
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23
Q

Which homeowners forms have Landlords furnishings as additional coverages?

A

HO-2
HO-3
HO-5

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24
Q

Which homeowners forms have building additions and alterations under additional coverages?

A

HO-4

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25
Q

Which homeowners forms have grave markers under additional coverages?

A 
HO-2
HO-3
HO-4
HO-5
HO-6
26
Q

Which homeowners forms have ordinance or law coverage as additional coverages?

A 
HO-2
HO-3
HO-4
HO-5
HO-6
27
Q

How much does the additional coverage for grave markers pay in a homeowners policy? ( excluding HO-8)?

A

$5000

28
Q

How much does the landlords furnishings coverage in the homeowners forms 2,3, and 5 pay for damages to appliances, carpeting, and other household furnishings?

A

$2500

29
Q

What are the basic named perils provided in all homeowners forms?

A
  1. Fire
  2. Lightening
  3. Windstorm or hail
  4. Explosion
  5. Riot or civil commotion
  6. Aircraft
  7. Vehicles
  8. Smoke
  9. V&MM
  10. Theft
  11. Volcanic Eruption
30
Q

What is NOT included under the theft peril in the homeowners forms?

A
  1. Theft by the insured
  2. Theft from a dwelling under construction
  3. Theft from a portion of the premises that the insured rents out
  4. Theft of watercraft or equipment, trailers or campers while off the premises
  5. Mysterious disappearance
31
Q

What additional perils or expansions does the HO-2 (broad form) have?

A
  1. Falling objects
  2. Weight of ice snow or sleet
  3. Accidental discharge or overflow of water or steam from within appliances or plumbing or related systems
  4. Sudden and accidental rupture of a heating, air conditioning, fire protective sprinkler or hot water heating systems
  5. Freezing of plumbing or related systems
  6. Sudden and accidental damage from artificially generated electrical current

In addition the HO-2 expands coverage for the vehicles peril and the smoke peril

32
Q

What does the vehicles peril in the HO-2 form cover?

A

Loss to a fence, driveway, or walk caused by a vehicle owned or operated by a person who lives in the insured household

33
Q

What does the HO-2 smoke peril expansion cover?

A

Loss caused by fireplace smoke

34
Q

Which homeowners form contains the same personal property coverage as the HO-2?

A

The HO-4 which has no coverage for dwelling or other structures

35
Q

What difference does the HO-6 have compared to the HO-2 and HO-4 in peril coverage?

A

In HO-6 the accidental discharge or overflow of water or steam peril includes coverage for the costs to tear out and replace any part of the building necessary to repair the system or appliance from which the water or steam escaped.

36
Q

What does HO-5 insure against that no other HO form does?

A

Mysterious disappearance

37
Q

Which exclusions do all homeowners forms exclude?

A
  1. Enforcement of law or ordinance regulating construction, repair or demolition
  2. Earth movement, including earthquake and mine subsidence
  3. Water damage, including flooding and overflow from a sump pump
  4. Power interruption that takes place off the residence premises
  5. The insureds failure to save and preserve property after a loss, or to protect it from loss
  6. War
  7. Nuclear hazard
  8. Losses caused intentionally by the insured or by someone else at the insureds direction
  9. Destruction, confiscation, or seizure of property by the government or a public authority
38
Q

Which forms have Coverage A as the primary amount of insurance?

A

HO-2
HO-3
HO-5
HO-8

39
Q

Which coverage is the primary amount of insurance for HO-4 and HO-6?

A

Coverage C

40
Q

What is coverage E in a homeowners policy?

A

Personal liability

41
Q

What is coverage F under a homeowners policy?

A

Medical payment to others

42
Q

What does coverage E apply to in a homeowners policy?

A

Coverage E applies to liability for bodily injury or property damage arising out of insureds personal, nonbusiness activities that occur anywhere. Also applies to bodily injury or property damage arising from insured locations

43
Q

What are the insured locations in Coverage E in the homeowners policies?

A
  1. The premises described in the declarations
  2. Residences newly acquired during the policy period
  3. Locations where an insured is temporarily residing
  4. Locations an insured is renting for nonbusiness use
  5. Vacant land owned or rented by the insured
  6. The insureds land on which a residence is being built
  7. Cemetery plots or burial vaults
44
Q

What does coverage F under a homeowners policy cover?

A

Pays all necessary medical expenses incurred within three years of an accident that causes bodily injury

45
Q

What limit does coverage F have in a homeowners policy?

A

$1000 per person per accident

46
Q

What additional coverages does section 2 of the homeowners policy provide?

A
  1. Claim expenses
  2. First aid expenses
  3. Damage to property of others
  4. Loss assessment
47
Q

What general conditions apply to the entire homeowners policy?

A

Policy changes

Assignment

Concealment

Fraud

Liberalization

Subrogation

Policy period

Cancellation

48
Q

What is the cancellation condition?

A

Under the cancellation condition, the insurance company may cancel for any reason with 10 days written notice to the insured during the first 60 days of a policy term. After that the company many only cancel for the following three reasons:

Material misrepresentation by the insured (30 days notice required)

Substantial change in risk insured (30 days notice required)

Nonpayment of premium (10 days notice required)

49
Q

Does the insurance company retain the right of nonrenewal?

A

Yes, with a 30 days notice

50
Q

What is the scheduled personal property endorsement?

A

Provides a separate schedule of insurance for one or more of nine major categories of valuable property

51
Q

What are the nine major categories of valuable property?

A
  1. Jewelry
  2. Furs and fur-trimmed garments
  3. Cameras, projectors, films, and equipment
  4. Musical instruments
  5. Silverware
  6. Golfers equipment
  7. Fine arts
  8. Postage stamps
  9. Rare and current coins
52
Q

What is the personal property replacement cost endorsement?

A

Provides that the policy will reimburse losses to personal property on a replacement cost basis rather than actual cash value

53
Q

What is the permitted incidental occupancies endorsement?

A

Overrides the exclusions under the homeowners forms that apply to the insureds business activities conducted on a residence premises.

54
Q

Do any of the homeowners forms cover earthquakes?

A

No, to add earthquake as a covered peril, the resident must purchase the earthquake endorsement. W

55
Q

What is the home day care coverage endorsement?

A

Extends homeowners coverage to this type of business, the premium for this coverage is based on the number of children the insured cares for.

56
Q

What is the watercraft endorsement?

A

An insured can purchase coverage for:

Watercraft up to 26 ft powered by outboard engines or motors exceeding 25 horsepower.

Watercraft powered by onboard or inboard out drive engines or motors

Sailboats more than 26 feet long

57
Q

What does the business pursuits endorsement cover?

A

Provides liability coverage for a business conducted away from the residence premises.

58
Q

What is the personal injury endorsement?

A

Modified the definition of bodily injury to include personal injury

59
Q

What is the limited fungi, wet or dry rot, or bacteria coverage endorsement?

A

Adds coverage to the property or liability sections of the policy for property damage and liability losses arising out of fungi, wet or dry rot, or bacteria. IT IS ONLY USED WITH THE HO-3 and HO-5

60
Q

A homeowner who wants maximum protection for her home and personal property should purchase which homeowners form ?

A

HO-5

61
Q

Which homeowners form provides broad coverage for both the dwelling and its contents?

A

HO-2

62
Q

The collapse additional coverage is included in which HO forms?

A

All forms except the HO-8

63
Q

Under all homeowners forms except the HO-5 losses to personal property are paid on (ACV/replacement cost) basis?

A

ACV

Property And Casualty (13 decks)

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