Homeowners Policy

Question 1

What is not an exclusion found in Section 1 of the homeowners policy?

Answer 1

Failure of the insured to care for the property BEFORE the loss
Neglect of the insured to care for the property may be a hazard but it is not an excluded cause of loss

Question 2

Under coverage C personal property, the homeowners policy (HO-3) covers property owned or used by an insured. When jewelry valued at $5,000 is stolen from the residence, the policy will pay what?

Answer 2

$1,500 which is the policy limit for loss by theft of
*Jewelry
*Watches
*Furs
*Precious and semiprecious stones
If additional coverage is needed an additional premium will be charged

Question 3

Credit card fraud is covered under a homeowners policy to a maximum of what amount?

Answer 3

$500

Question 4

What could be insured under coverage B of a homeowners policy?

Answer 4

A DETACHED garage rented to a neighbor to store his sports car during the winter.
* This is an exception! The policy does not normally cover others structures rented to others except under the condition that it is being rented as a private garage.

Question 5

Under the homeowners policy, what is the MAXIMUM number of roofers, boarders permitted in residential structures eligible for homeowners coverage?

Answer 5

2 is the maximum

Question 6

What is an untrue statement regarding theft coverage under HO-8 policy?
Hint…*If these items are stolen out of a home, HO-8 would not cover them

Answer 6

Special limits of liability for jewelry and furs are provided.

Question 7

Bill and Marge have a HO-2 policy up insuring their main residence for $150,000. How much coverage do they have for personal property kept at the SUMMER COTTAGE?
Hint….Only 10% of the personal property limit can be applied to property NOT located at the insured’ primary residence

Answer 7

$7,5000

Question 8

Homeowners section II provides additional coverage with the exception of who?
Hint…. Section II provides coverage to thirds parties

Answer 8

First aid to the insured