Homeowners Policy

Question 1

An insured condominium unit owner want to purchase fire and extended coverage for personal property and liability coverage for himself and his family members. He should purchase

Answer 1

HO-6

Question 2

All of the following are additional liability coverages automatically provided in a homeowners policy EXCEPT

Answer 2

Personal Injury

Question 3

Losses that result from freezing of a plumbing system while the dwelling is vacant would be EXCLUDED under a homeowners policy UNLESS

Answer 3

The insured had drained the plumbing system

Question 4

If an insured operates a home day care business out of their house, how can they ensure the liability exposure coverage?

Answer 4

Attach the home daycare coverage endorsement to the HO policy

Question 5

Which of the following endorsements is used to insure Coverage C for values beyond the limitations of the homeowners policy?

Answer 5

Scheduled personal property endorsement

Question 6

All of the following are optional coverages that may be attached to an HO-3 policy EXCEPT

Answer 6

Dwelling replacement cost

Question 7

Which of the following coverages will respond if a claim is made or a suit is brought against the insured for damages due to bodily injury or property damage caused by an occurrence to which coverage applies?

Answer 7

Coverage E- Personal Liability

Question 8

Under Coverage C of a homeowners policy, the amount of insurance provided to cover personal property of the insured is

Answer 8

50% of the amount of coverage provided in Coverage A

Question 9

Which of the following homeowners forms is designed to provide named peril coverage for personal property to individuals who rent an apartment?

Answer 9

HO-4

Question 10

The insured’s mother-in-law broke her leg falling down the front steps of the insured’s premises. The insured’s homeowners medical payments coverage will

Answer 10

Apply to injuries of any guests or visitors

Question 11

According to the loss payment condition in the HO policies, losses must be paid within how many days of the insurer receiving proof of loss?

Answer 11

60 days

Question 12

An insured runs a day care in their home. They have purchased the home day care endorsement under her HO policy. Which of the following losses would her coverage cover?

Answer 12

A child trips over a toy in the driveway, cuts her knee, and requires stitches.

Question 13

All of the following are true of Coverage B- Other Structures EXCEPT

Answer 13

It must be added by endorsement to a homeowners policy

Question 14

Homeowners policies provide coverage for

Answer 14

Business property while on the residence premises

Question 15

An insured works outside the home. The insured’s sister lives with him and cares for his four children. When the insured’s home is severely damaged by fire, the family moves into an apartment while repairs are being made. His sister has to stay at a motel. How much will the HO-3 form pay for these additional living expense?

Answer 15

All of the expense up to the Coverage D limit

Question 16

While cutting grass in your yard with your brother’s borrowed lawnmower, the fuel line ruptures and the lawnmower is destroyed in the fire. How will your HO liability react?

Answer 16

It will cover the damage

Question 17

Which of the following would NOT be considered part of the insured location under the liability section of a HO policy?

Answer 17

Vacant farmland owned by the insured

Question 18

The additional living expenses coverage on HO policies

Answer 18

Is intended to allow the family to maintain its normal standard of living

Question 19

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

Answer 19

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

Question 20

Which loss listed below would be fully covered by a homeowners policy?

Answer 20

$2,000 silver tea set stolen

Question 21

Which of the following best describes liberalization clause in a policy?

Answer 21

Changes adopted by the insurer that broaden coverage automatically apply to the policy at no additional premium

Question 22

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

Answer 22

$500

Question 23

Which of the following HO forms is designed for individuals that own and reside in a condo?

Answer 23

HO-6

Question 24

Coverage F under a HO policy would cover

Answer 24

A residence employee who is insured on the job

Question 25

Personal property coverage under a HO policy would cover

Answer 25

The insured’s camera if it is stolen while the insured is on vacation

Question 26

Which of the following claims does NOT fall under the scope of liability coverage of Section II of a homeowners policy?

Answer 26

The named insured is borrowing a friend’s jacket which is later damaged

Question 27

Who is covered by an HO-4 policy?

Answer 27

Tenants

Question 28

First aid costs for others injured on the insured’s premises

Answer 28

are paid in addition to the liability limit

Question 29

Which of the following losses would be covered by an unendorsed homeowners policy?

Answer 29

Fire or lightning

Question 30

An insured is a member of the neighborhood association, and has become liable for damage to a third party. Each member of the association has been assessed a portion of the loss equal to $2,000. How much will the Loss Assessment additional coverage of the insured’s HO liability policy pay?

Answer 30

Up to $1,000

Question 31

The HO policy covers collapse caused by all of the following EXCEPT

Answer 31

Foundation cracks

Question 32

The Business Pursuits endorsement under Section II of a homeowners policy will cover all of the following EXCEPT

Answer 32

Business liability

Question 33

Damage to insured property caused by earth movement or earthquake is covered under which of the following homeowners froms?

HO-2, HO-3, HO-5, none

Answer 33

None

Question 34

Additional coverages in the liability section of a HO policy cover all of the following EXCEPT

Answer 34

Damage to third-party property for which the insured is legally liable

Question 35

With regards to a HO policy, which coverage provides for indirect or consequential loss?

Answer 35

Coverage D

Question 36

Which of the following would NOT be covered by Medical payments to others section of HO policy?

Answer 36

You cut your leg while whacking weeds in backyard using your neighbor’s weed whacker.

Question 37

Which loss would be fully covered by a homeowners policy?

Answer 37

$2,000 silver tea set stolen

Question 38

Which of the following liability coverages must be added by endorsement to a HO policy in order to apply?

Answer 38

Personal Injury

Question 39

Which of the following would be covered in homeowners coverage forms?

Answer 39

Landlords furnishings in an on-premises apartment

Question 40

HO policies provide coverage for

Answer 40

Business property while on the residence premises