Homeowners Policy Coverages

Question 1

Homeowners Coverage Forms:
What is HO-2?
What does it cover?
What kind of peril does it cover?

Answer 1

BROAD FORM
- BBBICEGOLF
- Named perils ^

Question 2

Homeowners Coverage Forms:
What is HO-3?
What does it cover?
What kind of peril does it cover?

Answer 2

SPECIAL FORM
- Open perils in which all perils are insured unless specifically excluded

Question 3

Homeowners Coverage Forms:
What is HO-5?
What does it cover?
What kind of peril does it cover?

Answer 3

COMPREHENSIVE FORM
- Provides the broadest coverage (Coverage A, B, C)
- Open perils basis
- Best choice!

Question 4

Homeowners Coverage Forms:
What is HO-4?
What does it cover?
What kind of peril does it cover?

Answer 4

RENTERS/CONTENTS ONLY
- “4-Rent” = renters insurance
- Named perils basis
- No Coverage A or B because the tenants are renting
- The insured is only a tenant of the dwelling ans is not responsible for insuring the structure itself

Question 5

Homeowners Coverage Forms:
What is HO-6?
What does it cover?
What kind of peril does it cover?

Answer 5

UNIT OWNERS (CONDO)
- Designed for the owners (not renters) of Condos and Cooperative units
- Named perils basis

Question 6

Homeowners Coverage Forms:
What is HO-8?
What does it cover?
What kind of peril does it cover?

Answer 6

MODIFIED
- Used to insure older homes
- Replacement value may be disproportionately higher than its market value
- Market Value < Rebuild
- Named perils basis

Question 7

Homeowners Coverages:
What is Coverage A?
What does it cover?

Answer 7

DWELLING
- Covers the walls and rood, any attached structures, and any materials/supplies next to or on the dwelling

Question 8

Homeowners Coverages:
What is Coverage B?
What does it cover?
What percentage of Coverage A does it cover?

Answer 8

OTHER STRUCTURES
- Any detached structures
- E.g. a shed, gazebo, detached garage, fence, etc.
- Covers 10% of Coverage A

Question 9

Homeowners Coverages:
What is Coverage C?
What does it cover?
What percentage of Coverage A does it cover?

Answer 9

CONTENTS/PERSONAL PROPERTY
- Any household or personal property, including anything the insured or household members use or own
- Covers 50% of Coverage A

Question 10

Homeowners Coverages:
What is Coverage D?
What does it cover?
What percentage of Coverage A does it cover?

Answer 10

LOSS OF USE
1. Additional Living Expenses
- the cost of a hotel if the home is unfit to live in, the cost of food while eating
out, and expenses like laundry
2. Fair Rental Value
- living expenses for 2 weeks

• Covers 50$ of Coverage A

Question 11

Homeowners Coverages:
What is Coverage E?
What does it cover?
What percentage of Coverage A does it cover?

Answer 11

LIABILITY
- People who would sue you because you’re at fault

Question 12

Homeowners Coverages:
What is Coverage F?
What does it cover?
What percentage of Coverage A does it cover?

Answer 12

MED PAY
NOT AT FAULT (for others)
- Insured will pay 3 years of medical expenses from the date of accident causing bodily injury
- Does not apply to the insured or regular residents

Question 13

What is Section 1 of the Homeowners Coverage Policy? List all 4

Answer 13

Coverage A - Dwelling
Coverage B - Other Structures
Coverage C - Contents/Personal Property
Coverage D - Loss of Use

(For me)

Question 14

What is Section 2 of the Homeowners Coverage Policy? List both

Answer 14

Coverage E - Liability
Coverage F - MedPay

(For others)