Homeowners Policys Flashcards
What are the key features of a homeowners policy?
Insured residential risks , includes coverage of personal property and liability
What types of properties are eligible for a homeowners policy ?
Up to a 4 family
No more than 2 room/ boarders
Residential condos
Seasonal homes
If my sister isn’t a resident of the home will she be a part of my HO policy?
No , relatives need to be residents to be covered
No visitors
If you are responsible for someone under the age of 21 will they be covered?
Yes , even if not related
What is an insured location ?
Residence
Any property acquired
Temporary living space (motel room)
Vacant land rented or owned (no farmland)
Land where a house is being built
Cemetery plots [headstone vandalized]
What are the 6 Homeowners coverage forms ?
Broad form- H02 - residence - named peril
Special form - H03 - residence - open/named peril- everything outside of exclusions[BIG]
Renters or tenant forms- H04- tenant occupied- named peril
Comprehensive form- H05 - residence- open peril - anything but exclusions
Condo form - H06- residence- named peril
Modified form - h08 - historic older homes owner occupied- named peril
SPECIALIZED DUE TO IT BEING HARD TO FIND CERTAIN MATERIAL TO FIX SOMETHING
H02 or broad form covers what ?
Fire/lightning
Wind or hail
Explosion
Riot or civil commotion
Aircraft
Vehicle
Smoke
Vandalism
Falling objects
Weight of ice / sleet
Foundational cracking or bulging
Freezing it appliances
Power surge
Volcanic eruptions
What is covered by the H03 or special form?
Everything from H02 but is also an open peril
UPGRADE
What is covered under tenants insurance? H04
Same as H02 WHARVES
What is covered under comprehensive form H05?
Building and contents as open peril outside of exclusions
What does section one of HO Cover?
A. Dwelling
B. Other structures
C. Personal property [contents]
D. Loss of use [money needed to live in new spot while home is fixed]
Minimum deductible or $250
What does section 2 of HO cover LIABILITY
E. Personal liability - at fault for injuries to others.
F. Medical payments to others
Different from E due to claiming that you are not at fault but still happened in your home.
Ex. Friend comes over and breaks leg
What are some additional HO Property coverages?
Debris removal
Lawns plants shrubs trees- $500
Removal - 30 days from moment you take something from house to pretect it
Ex- grandmas chair in fire
Reasonable cost for repairs - temporary repairs
ex tarp on leaking roof
Fire damage service charges - fire trucks etc up to 500$ no deductible
Credit card - up to $500 for stolen or unauthorized use of credit card
Glass and safety
Collapse
Loss assessment - up to 1,000
Landlord furnishing - up to 2,500
Building additions - H04 only renters .. 10% of coverage C
What are insured duties after a loss?
Provide notice of the loss - notify insurance
Notify policy if a theft
Notify credit card if unauthorized use
Prevent further damage to property
Ex. Board up broken window
Allow insurer to inspect property as much as needed
Submit to examination under oath
Within 60 days send signed sworn proof of loss
What is replacement cost vs actual cash value ?
What you would need to walk into a store to buy it today versus what you could sell the item for at its current state.
Ex . New tv gets opened and you try selling it
ACV shows there has been wear and tear , can’t be 100% since you’ve owned it
ACV for context [plates, chairs etc]
Does replacement cost deduct for depreciation?
No but it will substitute kind and quality at todays price rather than when the original material was built or installed
Ex. Walls, roof
Won’t replace with used material
If your home was built 30 years ago and burns to the ground what term is used when describing building that new home instead of with old material?
Replacement cost
Do you have liability coverage on dwelling policies?
No , you do on Homeowners
Liability is payed to others. No me
What are some Liability coverages ?
E. Personal liability
-Bodily injury [BI] property damage [PD]
-Pays up to policy limit
- cost of defense [lawyers] does not reduce limit
F. Medical payments to others
- limit of 1,000
- coverage regardless of fault
- have to file within 3 years
What is a claims expense?
Expenses in and lawsuit against the insured.
Up to $250 per day for loss of income
Ex. Time off of work for court, injury
What is first aid to others in terms of liability coverage?
Ex. If someone was bit by your dog , medical supplies
covers for trying to help someone
What is loss assessment coverage?
Up to 1,000 assessed to repay to replace what was damaged
Ex. Damaging HOA landscaping you can be covered
