Lesson 6: Homeowners Insurance - Property Coverage Flashcards

Question

Section II Coverage E covers

Answer 1

Personal Liability with a minimum of $100,000 per occurrence for Bodily Injury/Property Damage. Defense is unlimited and above the policy limits.

Answer 2

medical payments to others

Answer 3

geared toward older homes with limited coverage and protects the residence from a specific list of eleven (11) named perils: fire and lightning; windstorms and hail; riots and civil commotion; explosions; aircraft and other vehicles; smoke; vandalism and malicious mischief; theft; glass that is part of the home; volcanic eruptions, and personal liability.

Answer 4

Broad form policies (HO-2) cover damage to the dwelling and possessions from specific perils listed in the policy, such as: explosion, fire, hail, civil commotion, theft, lightning, windstorm, riot, vandalism, falling objects, smoke, damage from a vehicle, damage from an aircraft

Answer 5

All Risk (HO-3) is the most common type of homeowners policy. The dwelling is covered against all risks or perils except those specifically excluded in the policy. The home’s contents are generally covered against named perils.

Answer 6

Renters (HO-4) policies provide coverage of a renter’s personal property if it is stolen, damaged, or destroyed in a home or apartment. Personal property is covered against named perils, and losses are settled on an actual cash value basis unless the renter purchases replacement cost coverage. Renters policies do not cover the house or apartment building or any detached structures.

Answer 7

Comprehensive Forms (HO-5) includes all risk for high-value homes. All risk includes coverage for the dwelling, other structures and personal property contents.

Answer 8

Condominium (HO-6) policies provide coverage similar to a renter’s policy. The limit chosen is based on the value of the owner’s personal property or contents. An HO-6 policy also provides coverage for that part of the dwelling that belongs to the condominium owner. This includes alterations, appliances, fixtures and improvements that are part of the building or are contained within the building. Both the dwelling and the contents are covered against named perils.

Answer 9

covers all risks from physical loss or damage to specified classes of property that are high-valued items or more, like silverware, fine arts, camera, and golf equipment. - The PAF may be written as a separate policy or attached to an existing policy. - The policyowner must provide a detailed appraisal of insured items.

Answer 10

Contents of the insured as a condo unit-owner Condo Association will purchase a master policy that covers the condo building (Commercial) The owner is responsible for the contents of their units and any upgrades that they make.

Answer 11

policy is void if an insured has intentionally concealed or misrepresented any material fact or situation relating to the policy, whether before or after a loss.

Answer 12

any revision adopted which would broaden coverage will immediately apply to the policy within 60 days prior to or during the time period.

Answer 13

a waiver or modification of any provision of the policy must be in writing by the insurer to be considered valid.

Answer 14

policy can be canceled at any time by the insured, notifying the insurer in writing; the date cancellation will take effect. The insurer may cancel the policy only for reasons stated in the condition and must inform the insurer in writing of the date cancellation will take effect.

Answer 15

1) war action 2) intentional acts (intentional injury exclusion prohibits an insured, which caused an intentional injury to himself or herself or to another person, from recovering insurance benefits for that injury) 3) Rendering or failure to render professional services (Bodily injury or property damage arising out of the rendering or failing to render professional service. For example, if CPR goes wrong and the recipient is injured) 4) Business liability (Business liability insurance protects a company and/or business owner in the event of a formal lawsuit or any third-party claim. For example, an in-home daycare would not be covered.) 5) Ownership and use of automobile, aircraft, watercraft (owned or rented) 6) Transmission of Communicable Disease 7) Sexual Molestation, Physical Abuse, mental abuse

Answer 16

covers direct physical loss caused by "flood." A flood is an overflow of water throughout cities and land that would be ordinarily dry.

Answer 17

A flood is water damage caused by flood, surface water, waves, tidal water, tsunami, storm surge, overflow of water, or spray from any of these whether driven by wind or not. Water or sewage from outside of residence premises plumbing system entering through sewers or drains; or water which enters into and overflows from within a sump pump, sump pump well, or any other system designed to remove subsurface water which is drained from the foundation area.

Answer 18

fed govt plays major role in flood ins; can only purchase it through NFIP

Answer 19

The FIA notifies the communities when they are eligible. The community has to adapt and abide by the outlined flood rules/guidelines. There is a 30 day waiting period before coverage can begin. For example, they would have to build dams and levees. If the community abides but the guidelines, they are then eligible to purchase flood insurance.

Answer 20

There is a regular program and an emergency program. After meeting requirements, the community would then qualify for the emergency program. They then develop a flood map for that community and the community can then participate in the regular program.

Answer 21

flood insurance deductible applies separately for the building and the contents

Answer 22

Personal watercraft require a separate policy package because most standard homeowners policies exclude boats.

Answer 23

1 Outboard Motor and Boat Insurance is an all-risk, Inland Marine floater that covers physical damage to boats. Claims are usually paid on an actual cash value basis. 2 Boatowners/Watercraft Package Policies, also known as Boatowner policies, combine property coverage on an open peril basis, liability, and medical coverage. In. They usually insure boats under 30 feet with a maximum dollar value of $25,000. Again, losses are usually paid on an actual cash value basis. 3 A Personal Yacht Policy is a specialized form of Ocean Marine Insurance and is usually written for pleasure boats that exceed maximum size and other requirements for a Boatowners/Watercraft policy.

Answer 24

provides individuals and families with low-cost, high- limit protection over the basic liability protections in several personal policies: Comprehensive Personal Liability in Section II of the Homeowners Policy Automobile liability Other personal (not business) liability insurance

Answer 25

$1 million