Property Policies

Question 1

What HO form covers Condominium unit owners?

Answer 1

HO-6 (Condominium unit owners)

Question 2

Under what conditions can broad theft coverage be added to a dwelling policy?

Answer 2

If the insured is the owner-occupant of the dwelling

Question 3

What are the major coverages included in a HO policy?

Answer 3

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

Question 4

What does form HO-5 cover?

Answer 4

The dwelling and other structures, as well as contents and personal property

Question 5

What are the 2 liability coverages included in HO policy forms?

Answer 5

Coverage E- Personal Liability
Coverage F- Medical Payments to others

Question 6

In general, what do HO policies cover?

Answer 6

Dwellings used primarily as private residences

Question 7

What type of coverage is included in HO policies, but is not available in DP?

Answer 7

Liability Coverage

Question 8

When would theft of property of guests and residence employees be covered under the HO-8 form?

Answer 8

Only while on the insured premises

Question 9

What are 2 types of Utility Services endorsements available in Businessowners policies?

Answer 9

Utility Services - Direct Damage
Utility Services - Time Element

Question 11

What do dwelling policies insure?

Answer 11

Dwelling only, contents only or both dwelling and contents

Question 12

Under Coverage C - Personal Property in the dwelling policy, when will a guest’s property be covered?

Answer 12

Only when the property is at the insured location

Question 13

An insured’s house becomes uninhabitable due to damage by a fire, As a result, the insured has to rent an apartment until repairs are made. Which type of coverage under the dwelling policy will pay for the expense of renting the apartment?

Answer 13

Coverage E - Additional Living Expenses

Question 14

What are some of the exclusions found in all 3 dwelling forms?

Answer 14

Earth movement, water damage, power failure, neglect, war, nuclear hazard, intentional loss, freezing of plumbing, ordinance or law, and government action

Question 15

What are the 5 coverages of dwelling policies?

Answer 15

Coverage A - Dwelling, Coverage B - Other structures, Coverage C - Personal property, Coverage
D - Fair rental value, and Coverage E - Additional living expenses

Question 16

When a dwelling policy is cancelled for nonpayment of premium, the insurer must give notice within how many days of the cancellation?

Answer 16

10 days

Question 17

What is the purpose of the National Flood Insurance Program (NFIP)?

Answer 17

To fill the gap in flood coverage left by private insurers

Question 18

Under Coverage C of an HO-3 policy, what is the amount of insurance provided for personal property?

Answer 18

At least 50% of the Coverage A limit (this applies to all policies except for HO-4 and HO-6)

Question 19

Commercial property coverage can be written with one of three causes of loss forms. What are they?

Answer 19

Basic, Broad, and Special

Question 20

What is the name for policy endorsements that may apply to more than one coverage part?

Answer 20

Interline endorsements

Question 21

in Commercial Inland Marine policies, who transports the property of anyone who hires them?

Answer 21

Common carriers

Question 22

Where can National Flood Insurance be issued?

Answer 22

Only in participating. flood prone areas

Question 23

What are additional coverages available in Homeowners policies without additional premiums?
(name several)

Answer 23

Debris removal. lawns/plants/shrubs, and trees, removal, reasonable repairs, and fire department service charge

Question 24

What are some of the exclusions from coverage in all of the Homeowners forms?

Answer 24

Land, structures used for business purposes, animals/birds/fish, aircraft, rented property, electronic data, and motor vehicles

Question 25

What components make up a Commercial Policy?

Answer 25

Policy cover; policy declarations; interlines endorsements; lines of insurance declaration pages; lines of insurance coverage forms; common policy conditions; lines of insurance conditions; causes of loss forms; and endorsements

Question 26

When can an insured cancel a Businessowners policy?

Answer 26

At any time by mailing a written notice of cancellation

Question 27

What type of property would be covered under the Builder’s Risk Coverage Form?

Answer 27

The building, temporary structures, foundations, fixtures, equipment, and materials and supplies within 100 feet of the premises

Question 28

How is the coverage usually written for HO-8 forms?

Answer 28

For the market value of the property

Question 29

What are the coverage parts that may be included in a Commercial Package Policy (CPPY?

Answer 29

Commercial property, general liability, crime, equipment breakdown, auto, inland marine, and farm

Question 30

How are the dwelling and other structures covered in an HO-3 policy form?

Answer 30

On an open peril basis

Question 31

What would be considered a single accident in Equipment Breakdown coverage?

Answer 31

All accidents at a single location, at the same time, by the same cause

Question 32

What is the purpose of interline endorsements in Commercial Package Policies (CPPs)?

Answer 32

They eliminate redundancy and minimize the number of other policy endorsements.

Question 33

What type of property can be covered under Inland Marine insurance?

Answer 33

Any type of property that is portable on land, as well as means of transportation and communication

Question 34

What type of policy is a Businessowners policy?

Answer 34

Prepackaged, stand-alone policy