Homeowners Policy

Question 1

True or False: Additional coverages in the liability section of a homeowner’s policy cover damage to a third-party property for which the insured is legally labile.

Answer 1

False

Question 2

True or False: Fire or lightning would be covered by an unendorsed homeowners policy?

Answer 2

True - These are included as basic perils in almost all homeowner’s policies.

Question 3

How much coverage is provided under a homeowners policy for theft or unauthorized use of a credit card?

Answer 3

$500

Question 4

Which homeowner form is designed to provide named peril coverage for personal property to individuals who rent an apartment?

Answer 4

HO-4

Question 5

Under the HO-4 and HO-6 homeowners policy forms, property is insured against:

Answer 5

Broad form perils

Question 6

True or False: A vacant farmland owned by the insured would be considered part of the insured location under the liability section of a HO policy?

Answer 6

False - Farm property is specifically excluded from coverage.

Question 7

True or False: Under Coverage C of a HO policy, the amount of insurance provided to cover personal property of the insured is 50% of the amount provided as Coverage A.

Answer 7

True

Question 8

True or False: Personal Injury liability coverage must be added by endorsement to a homeowners policy in order to apply.

Answer 8

True

Question 9

Who is covered on an HO-4 policy?

Answer 9

Tenants

Question 10

When is liability coverage included in a homeowners policy?

Answer 10

It is included automatically.

Question 11

True or False: Dwelling replacement cost is an optional coverage that may be attached to an HO-3 policy.

Answer 11

False - The HO-3 provides replacement cost for losses to the dwelling, without endorsement or optional coverage being added.

Question 12

True or False: Coverage D provides for indirect or consequential losses.

Answer 12

True

Question 13

True or False: Homeowners policies provide coverage for business property while on the residence premises.

Answer 13

True.

Question 14

True or False: Personal injury is an additional liability coverage automatically provided in a homeowners policy.

Answer 14

True

Question 15

If the insured owns a watch valued at $10k, what can be provided on a homeowners policy for full coverage?

Answer 15

Scheduled personal property endorsement

Question 16

True or False: A divorced spouse living in another state would be considered an insured under a homeowners policy?

Answer 16

False

Question 17

Under additional coverages for homeowners policies what is the maximum amount that can be charged to the insured for fire department services?

Answer 17

$500

Question 18

What type of coverage is primary in homeowners policies?

Answer 18

Personal Liability

Question 19

A grave marker was damaged by vandals. It would cost $3k to be repaired. Under these circumstances, how much would a homeowners policy pay?

Answer 19

$3,000 - Will pay up to $5,000 for grave markers, mausoleums on or away from the premises for loss caused by a peril insured against under Coverage C.

Question 20

True or False: An oriental rug in an on-premises apartment could be covered by an HO policy.

Answer 20

True

Question 21

True or False: A coin collection valued at $500 lost in a fire would be covered by a homeowners policy?

Answer 21

False

Question 22

Contents coverage on a homeowners policy would pay how much after the loss of one of a pair of golden candlesticks?

Answer 22

The difference in the actual cash value as a pair and a single.

Question 23

Which homeowner form is designed to provide named peril coverage for personal property to individuals who rent an apartment?

Answer 23

HO-4

Question 24

True or False: Medical payment to others is included in an unendorsed homeowners policy?

Answer 24

True

Question 25

Which form of coverage provides for loss of use, which is a direct loss?

Answer 25

Coverage D

Question 26

An insured has a personal property replacement cost endorsement under their homeowners policy. If an expensive painting and an antique chair are stolen from the insured’s home, what will the insured receive on the claim under that endorsement?

Answer 26

Nothing - Personal property such as art and antiques is excluded.

Question 27

True or False: First aid costs for others injured on the insured premise are paid in addition to the liability limit.

Answer 27

True

Question 28

True or False: The business pursuits endorsement under Section II of a homeowners policy will cover business liability.

Answer 28

False

Question 29

True or False: Dwelling replacement cost is an option coverage that may be attached to an HO-3 policy.

Answer 29

False - The HO-3 provides replacement cost for losses to the dwelling, without endorsement or optional coverage being added.

Question 30

The main difference between an HO-4 and an HO-6 policy is?

Answer 30

HO-6 provides limited dwelling coverage as well as contents coverage.

Question 31

True or False: Personal injury must be added by endorsement to a homeowners policy in order to apply.

Answer 31

True

Question 32

True or False: Coverage B - Other Structures, must be added by endorsement to a homeowners policy.

Answer 32

False