Sec.2 - Ch.3: Property, Casualty, & Liability Insurance

Question 1

Homeowners Insurance: What are the Section 1 Coverages?

Answer 1

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

Question 2

What is Section 1 Coverage A in Homeowners Insurance?

Answer 2

Dwelling:
- Insures the dwelling and any structures attached to the dwelling like garages, decks, or fences
- Land is EXCLUDED from coverage

Question 3

What is Section 1 Coverage B in Homeowners Insurance?

Answer 3

Other Structures:
- These are other structures set apart from the dwelling by a clear space
- Like swimming pools, detached garages, fences, patios, or detached living spaces

Question 4

What is Section 1 Coverage C in Homeowners Insurance?
What property is specifically excluded from coverage?

Answer 4

Personal Property:
- It is coverage for personal property anywhere in the world (not just in the insured home)
- Excluded: animals, birds, fish, motor vehicles/aircraft, property of roomers or boarders, property in an apartment rented to others

Question 5

Do homeowners policies cover exposures related to being a landlord?

Answer 5

Generally no, an endorsement would need to be added

Question 6

What is Section 1 Coverage D in Homeowners Insurance?

Answer 6

Loss of Use:
- Coverage applies for additional living expenses arising from damage to the insured property
- Only pays for the necessary increase in living expense incurred by the insured to continue as near to the normal standard of living

Question 7

Homeowners Insurance: What are the Section 2 Coverages?

Answer 7

Coverage E: Personal Liability
Coverage F: Medical Payments

Question 8

What is Section 2 Coverage E in Homeowners Insurance?

Answer 8

Personal Liability:
- Provide protection for damages for which an insured is legally liable arising out of bodily injury or property damage
- The insurance company also agrees to defend the insured and has the right to settle any suit

Question 9

What are the exclusions for Section 2 Coverage E in homeowners insurance?

Answer 9

• Liability from business activities or professional services
• Liability from usage of motorized land vehicles (Exception: recreational vehicles or motorized golf carts used on the property premise)
• Liability from using a watercraft, exception would be if it has less than 50 horsepower or is a sailboat of less than 26 feet
• Liability from usage of
  an aircraft
• Liability from a bodily injury from to any person who is eligible for worker’s compensation

Question 10

What is Section 2 Coverage F in Homeowners Insurance?

Answer 10

Medical payments:
- Provides very limited amounts per person of coverage for necessary medical expenses of persons other than the insured who are injured whole on the insured location (this is not liability coverage)