Homeowners Policy Flashcards
National association of insurance commisioners (naic)
Consist of all state and territorial insurance commissioners or regulators.
Provides resources, research, legislative and regulatory recommendations and interpretations for state insurance regulators
Insurance service office ( iso)
Develops the standard insurance forms used California
Eligibility requirements for homeowners program
-forms ho-2 ho-3 ho-5 and ho-8
Owner occupied dwelling with no more than four residential units, the named insured must live in one of the units
Form ho-4
Residence or apartment is rented not owned
Form ho-6
Condo or Cooperative unit may be rented or owned

Ho-2 (broad form)
The dwelling and other structures are insured against the broadform named perils, with losses paid on replacement cost spaces.
Ho-3 (special form)
The dwelling and other structures are insured against all direct physical damage (open perils) with lossed paid on replacement cost basis
Ho-4 ( contents broad form )
The contents are insured against the broad form perils, with losses paid on actual cash value basis.
Coverage not provided for dwelling or other structures
Ho-5 (comprehensive form)
Provides the broadest coverage of any homeowners policy. The dwelling, other structures, and contents are all insured on an open perils bases
Ho-6 ( unit-owners form)
Provides the name peril‘s coverage to the owner of a condominium or cooperative unit under coverage A- Dwelling and Coverage C- Personal prop. 
Ho-8 (modified form)
Coverage is available on named perils basis. This form is used when isuring older homes where replacement value / market value are disproportionate.
Named perils basis HO
Ho-2 coverage A HO-3 coverage C Ho-6 coverage C Ho-2 coverage C Ho- 2 coverage B Ho-6 coverage A Ho-4 coverage C
Homeowners coverages
Coverage A- dwelling B- other structures C- personal prop D- loss of use E- personal liability F- medical payments to others
Coverage B-
Applies to covered losses to related structures on the premises when they are seperated by a clear space from the dwelling, such as detached garages or tool sheds. Structures connected to the dwelling by only fence or utility line are considered seperate
Coverage A-
Policy covers :
- Dwelling on residence premises , including structures attatched to dwelling
- Materials/ supplies located on or next to the premises being used for construction.
Coverage C
Applies to the personal prop owned or used by the insured , including borrowed prop damaged by the insured. Coverage is provided anywhere in the world.
Coverage c limit of insurance is 50% of the coverage A limit of liability.
Fair rental value
If, at the time of loss, a part of the residence promises is rented, this coverage part will pay the los rental value, less any expenses that do not continue, such as utilities
Civil aithority probibits use
If a civil authority prohibits the insured from the use of the residence premises as a result of direct damage to the neighboring premises by a peril insured against, the insurer would cover additional living expenses and fair rental value
Limits of coverage
The coverage D limit under an Ho-2, ho-3 and ho-5 is 20% of the coverage A limit. Under an HO-4 it is 20% of the coverage C limit. Under an HO-6 it is 50% of the coverage C limit. Under ho-8 it is 10% of coverage A limit
Losses to other structures covered by a special form homeowners policy are settled on a what basis?
Replacement cost
During a state of emergency what is the policy limit that must be provided for losses under coverage C?
30% of the policy limit applying to the dwelling, up to 250,000 must be provided for losses under coverage C
Fire department policy
Pays up to $500 for contractual liability for response by fire department outside the city limits of residence premises, this is additional insurance
What type of coverage is provided by HO-3 under the property removed additional coverage?
Open perils coverage for 30 days
Loss assesment
This policy provides up to $1000 of coverage for loss assessment against an insured as the owner or tenant of the residence premises. Additional insurance.
 collapse
Does policy covers the direct loss to cover property involving the collapse of a building, or any part of the building, caused by any of the following specified perils
- Hidden decay
- Hidden insect/vermin damage
- Weight of rain on roof
- Weight of content,animal or people
- Use of defective material or methods of construction
Glass of safety glazing material
This policy covers a breakage of glass or safety glazing material that is part of a covered building, storm door, or storm window
Landlords furnishings
This policy will pay up to $2500 in any one loss for the insureds appliances, carpeting, and other household furnishings for loss causes by covered peril other than theft
Ordinance or law
10% of the coverage a limit is provided for increased cost due to the enforcement of an ordinance or law pertaining to the construction, demolish, remodeling, etc. of a covered building or structure
Grave markers
Up to $5000 is covered for grave markers for any of named perils
Endorsement
When added as an endorsement to a ho-2 or ho-3 the endorsement modifies or removes coverage as necessary and reduces the policy limits for coverage c and d .
California residental prop insurance disclosure statement
The california residential prop insurance disclosure statement is required by cali law and must be provided to the named insured in order for an insurer to issue or renew a residential prop policy
Personal prop replacement cost
This endorsement changes the coverage C valuation method from ACV to replacement cost
Extended replacement cost
This endorsement provides increased coverage to structure to match increase construction or remodeling costs, and it must be accompanied by the California residential prop insurance disclosure
Other structures-increased limits
To add for the protection for losses to sheds and detached garages, and insured purchases endorsement to provide a higher amount of insurance for loss is covered by coverage b
Schdeduled personal prop
Policy has a special limit of liability for theft of jewelry
HO3 provides special limits of liability for personal property coverage for:
Jewelry and furs-1500$
Loss of money-200$
Theft of firearms-2500$
Lost to watercraft-1500$
