Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Homeowner > Major Policy > Flashcards

Major Policy Flashcards

1
Q

All Homeowner forms our package policies because they have two sections

A

Property and casualty (P&C)
• section 1 – property P coverage for your property-first party coverage

  • section 2 – casualty/liability
    * coverage for liability you have caused-third-party coverage
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Deductible

A

The standard deductible is $250

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Effective date

A

12:01 AM

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Eligibility requirements

A

•1–4 unit home
• The named insured must principally reside in the home.
Exception to ensure principally residing• The content brought form (renters insurance)

Must be principally used as a Residence: •beauty shops 
•professional offices 
•music schools 
•art studios
       *NO RETAIL*
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Insured locations

A

Newly acquired residence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Policies/forms

A 
HO – 08: modified form
HO – 02: broad cause of loss form
HO – 03: special cause of loss form
HO – 05: comprehensive form
HO – 04: contents broad form (renters insurance)
HO – 06: condo unit owners form
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Property coverage

A

All property coverage is for : the named insured/insureds.

Coverage a-The dwelling

Coverage b-the other structures appurtenant structures

Coverage C -personal property

Coverage D – loss of use-consequential losses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Coverage A

A

Include structures directly attached to the dwelling.
•Wall-to-wall carpeting
•furnace
•a pump for well water.

  • Includes materials being used for repairs and construction of the dwelling.
  • Lumber
  • shingles
  • copper pipes.

Does not cover a barn attached by electric line

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Loss valuation

A

The H08 is for older homes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

HO – 08

A

Market value the price paid after negotiations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Coverage limit A-Limit

A

HO – 06-automatic limit of $1000
HO-2,HO-3,HO-5: The agent should recommend the cost to rebuild
Formula-The square footage of the home X The cost per square foot

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Coinsurance/insurance to value/loss value ratio

A

The 80% coinsurance clause/insurance to value/loss value ratio.

Encourage

How much will the insurance company pay: formula: Did/should 80% X the loss= The amount the company will pay.

  • Did equal the limit the policyholder chose for their building.
  • Should equal 80% of the cost to rebuild/value of the building.
      When the insured is caring at least 80% of the cost to rebuild the insurance company will pay for the loss in full.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Coverage B: appurtenant structures/Other structures

A
  • A detached garage.
  • Tool shed.
  • Pool.

Exclusions:unattached structures that are used for a business
Exception and unattached garage rented to store a vehicle

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Limit for coverage B

A
  • 10% of a.

* The HO – 4 and HO – 6 do not have any coverage for other structures(B)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Personal property/contents

A

Personal property receives 30 days of coverage when moving to a new residence.
*Even when the insurer has not been notified.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Coverage C- loss valuation

A

Personal property –HO-8, HO-2, HO-3, HO-5,Ho-4, HO-6:Personal property is actual cash value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Coverage C- Limit

HO8,HO2,HO3,HO5,HO4,HO6

A

Personal property:HO8-HO5 is 50% of A

HO4 and HO6: Declared amount

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Coverage territory

A

Worldwide

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Specified Limits-Any peril causes Damage to personal property

A

Money-$200
Securities, $1,500
Watercraft:includes:trailers, anchors, outdoor motors-$1,500

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Specified limits-The peril is theft:Personal Property damage

A
  • Jewelry, furs,watches-$1500
  • Goldware, silverware, Tea sets, trophies – $2500
  • Firearms and related equipment-$2,500
21
Q

Coverage D

loss of use

A
  • Covers indirect losses when the direct loss is covered.

* Additional living expenses:pays when the insured’s residence becomes uninhabitable due to a covered loss

22
Q

Loss of use limit

A

HO8:10% of A
HO2 HO3 HO5: 30% of A
HO4:30% of C
HO6:50% of C

23
Q

Perils. All homeowners policies have coverage A-D for property

A

•The perils covered by coverage A-C are what differentiates the policies

24
Q

Basic perils

A

There are 12 basic perils – they are named/listed perils.
• all homeowner forms cover basic perils. •The HO-8 only has basic perils

The Whales aRe Very Very Very Fat

T-Theft
W-Wind
H-Hail
A-Aircraft 
L-Lighting 
E-Explosion 
S-Smoke
R-Riot/civil commotion 
V-Vehicles 
V-Vandalism/Malicious Mischief 
V-Volcanic Activity/Action 
F-Fire
25
The basic perils are named perils
Theft- •HO-5 covers mysterious disappearance for lost or misplaced items. •No theft coverage for boats away from the premises. Wind- •exterior damage should be covered the exterior must first be damaged. •No coverage for boats not enclosed in a building or a garage. Hail- •For interior damage to be covered the exterior must first be damaged Explosion- •Includes the explosion of gas within a furnace or fired vessels Smoke- •Must be sudden and accidental •Includes puff back •Excludes damage from fireplaces and agricultural smudging Vehicles- •Excludes damage done by your own vehicle •The fence is excluded when struck by a vehicle Vandalism- Excludes vandalism to a dwelling after 60 days of consecutive vacancy. Vacant: No people or personal property in the dwelling. Unoccupied: No one’s home Volcanic activity/Action- •The eruptions- above ground damage •Ash,Lava,Blast or Airborne Shockwaves Fire-Provides coverage for: •Firefighter damage (sprinkler/hoses)
26
Crime terms
Robbery- •threatening a person with bodily harm and taking personal property. *Committing a felony Burglary-Force entry, or exit taking a property from inside a building, locked vault or safe. Theft-all acts of stealing
27
The broad Peros
All Fat Whales Want Fish * Artificial electric current * Falling objects * Water damage from appliances or pipes-Damage from: * appliances * Pipes * Weight of Ice, Snow and Sleet * Freezing of plumbing systems *COLLAPSE is an additional coverage provided when you have broad perils* 
28
Special perils covers
Bears Ice dams Gutters Special open all risk Everything except exclusions *Collapse is also an additional coverage provided when you have special perils*
29
Additional coverages: additional coverages are provided by the policy at no additional cost
1. Reasonable repairs: •no limit 2. Fire department service charge: •no deductible 3. Ordinance or law: limit: •10% of coverage A •HO – 8 excluded Collapse: HO – 8 is excluded because it only has basic perils
30
Additional coverage: Debris removal/Fallen tree removal
Remove any one fall and tree – $500 Remove multiple trees to be removed – $1000 Replacement of trees, shrubs or other plants- •One plant/tree-$500 •All plants/trees – 5% of coverage A
31
Optional Endorsement
Earthquake calls of loss form: •earthquakes within 72 hours are treated as a single occurrence. •The deductible is a percentage of the limit. *Volcanic eruption* Personal property replacement cost endorsement: actual cash value to replacement cost
32
Mobile home endorsement
Eligibility: HO-2 or HO-3 are The policy options for this endorsement Coverage A-Cost to rebuild Coverage B-10% of A Coverage C-40% of A
33
Mine subsidence/mine collapse
•Not a sinkhole •Must offer •Provides coverage for dwelling commercial buildings or farm buildings *limit $100,000 ``` Exclusions: •land, •trees, •crops or other plants. •Personal property/contents of the structure. •Business inventory ```
34
Liability/casualty
* Personal liability and medical payments to others. * Third-party coverage 3rd party coverage: •Coverage E-personal liability $100,000 per occurrence. •Coverage F medical payments to others $1000 per person (36 months) Territory: • worldwide
35
Who is insured
Children and the military are excluded. Resident employee: an employee of the residence only covered for negligence at the resident‘s premises. Insured pets: cover both residence premise and anywhere in the world
36
Personal liability
Pays when the named insured/insured is legally liable for bodily injury or property damage to a third-party. The limit for personal liability: $100,000 per occurrence
37
Coverage F- Liability
Medical payments to others: •3rd party coverage • $1000 per person • three years (36 months) to Place a claim from the date of the accident Medical payments will pay regardless of fault • negligence does not have to be established
38
Damage to a rented premises: fire legal liability
Provides coverage when the named insured is legally liable for fire damage to real property that they rent or temporary occupy (not yours) Real property: •Real estate/real property only. •Vacation homes. •Leasing/renting a home or apartment. •Hotel rooms. Perils: •Fire *water damage from firefighters. •Explosion. •Smoke
39
Supplemental payments
Pay above and beyond the policy limit Loss of earnings after $250 per day for the insured to testify
40
Liability exclusions: covered boats
These are covered for watercraft liability three homeowner policy: •under 25HP outboard motor boat you own. •Under 50 HP inboard motor boat that you rent. •Sail boats under 26 feet you own or rent *fast boats are not covered by homeowners *
41
Exclusions
Motor vehicle liability: •liability excludes your auto. •Motor vehicle liability provides coverage for: •vehicles use to service the residence (lawnmower) Vehicles to assist the handicapped (wheelchair) motorized golf carts in an approve Community
42
Section 1 and section 2 – conditions
Duties after a loss/occurrence clause: •Protect the property from further loss. •Submit a sign sworn statement of loss and show property damage within 60 days after the loss. *Obtain an appraisal of damage. Certificate of insurance: •evidence of insurance coverage is referenced as an outline of coverage: *The effective date *type of insurance coverage *dollar amount of liability Mortgage holders/mortgagee clause: •protects the bank that has insurable interest in your home with certain rights and responsibilities. *If the named insured commits fraud, the mortgagee will still be able to file a claim
43
Loss to a pair or a set clause
Value of set minus value remaining equals loss settlement
44
Appraisal clause
Rules for what should be done with the insurance company and the insured disagree about the value of the claim
45
Other insurance clause/pro Rata liability
Used when two or more homeowners policies cover a loss
46
A homeowner policy can be canceled for
* Nonpayment of premium * Property sold in foreclosure * Fraud and concealment * Inspection reveals the home is uninsurable
47
Cancellation reason
Nonpayment of premium: 10 days
48
Cancellation for reasons other than non-payment
* 60 days or less: 10 days. | * More than 60 days/non-renewal:20 days

Homeowner (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions