Texas Homeowner Policy Flashcards
What policy can tenants (renters) and condo owners use?
Homeowners Policy in adjusted forms
Coverage A will not be included for a Tenants Policy
A modified Coverage A will be included for a Condo Policy
What is the Texas Homeowner Policy?
It is a package policy because it has coverages for both property and liability.
To qualify you must own and occupy the premises. You must also intend to reside at the premises within 60 days of the policy effective date
Has the same rule as Texas Dwelling, cannot have more than 50% for a business and cannot be within 500’ of a business.
Cannot be a mobile home
What is the standard deductible for Coverage A for a Texas Homeowners Policy?
1% of coverage A
You can select a lower deductible but it will increase the premium.
What is the standard deductible for tenant and condo policies?
1% of Coverage C
What are the coverages for a Texas Homeowners Policy?
A-Dwelling B-Other Structures C-Personal Property D-Loss of Use E-BI & PD F-Med Pay
What is the HO-8 form of Texas Homeowners Policy?
Is meant for historical or Victorian homes
What perils are covered by HO-8 Texas Homeowner Policy?
Fire/lightning Extended coverage perils Theft Vandalism Volcanic eruption (72 hours)
What are the coverages and valuation for HO-8 under Texas Homeowner Policy?
- A-Dwelling - ACV
- B-Other Structures - ACV
- C-Contents - ACV
- D-Loss of Use - 10% of Coverage A
- E-BI & PD - 100,000 per occurrence
- F-Med Pay - 1,000 per person
What are the coverages and valuation for HO-2 under Texas Homeowner Policy?
- A-Dwelling - ACV
- B-Other Structures - ACV
- C-Contents - ACV
- D-Loss of Use - 20% of Coverage A
- E-BI & PD - 100,000 per occurrence
- F-Med Pay - 1,000 per person
What are the coverages and valuation for HO-3 under Texas Homeowner Policy?
- A-Dwelling - Replacement
- B-Other Structures - Replacement
- C-Contents - ACV
- D-Loss of Use - 20% of Coverage A
- E-BI & PD - 100,000 per occurrence
- F-Med Pay - 1,000 per person
What are the coverages and valuation for HO-5 under Texas Homeowner policy?
- A-Dwelling - Replacement
- B-Other Structures - Replacement
- C-Contents - ACV
- D-Loss of Use - 20% of Coverage A
- E-BI & PD - 100,000 per occurrence
- F-Med Pay - 1,000 per person
What are the covered perils under HO-2 for Texas Homeowners Policy?
Fire/lightning Extended coverage perils Theft Vandalism Volcanic eruption Falling objects Weight of ice, sleet, or snow Accidental water discharge Electrical current
What are the covered perils for HO-4 for Texas Homeowners policy?
Fire/lightning Extended coverage perils Theft Vandalism Volcanic eruption Falling objects Weight of ice, sleet, or snow Accidental water discharge Electrical current
What are the covered perils for HO-6 for Texas Homeowners policy?
Fire/lightning Extended coverage perils Theft Vandalism Volcanic eruption Falling objects Weight of ice, sleet, or snow Accidental water discharge Electrical current
What are the covered perils for HO-3 of Texas Homeowner policy?
All risks for A-Dwelling and B-Other Structures
HO-2 perils for C-Contents and D-Loss of Use Fire/lightning Extended coverage perils Theft Vandalism Volcanic eruption Falling objects Weight of ice, sleet, or snow Accidental water discharge Electrical current
What are the covered perils for HO-5 for Texas Homeowners policy?
All risks
What are the coverages and valuation for HO-4 for Texas Homeowner Policy?
C-Contents - ACV
D-Loss of Use
E-BI & PD - 100,000 per occurrence
F-Med Pay - 1,000 per person
What are the coverages and valuation for HO-6 for Texas Homeowners Policy?
- A-Dwelling - ACV
- B-Other Structures - ACV
- C-Contents - ACV
- D-Loss of Use
- E-BI & PD - 100,000 per occurrence
- F-Med Pay - 1,000 per person
Which policies cover essentially the same perils?
HO-2, HO-4, HO-6
What is one major difference when it comes to perils when comparing Dwelling and Homeowners?
Dwelling does not cover theft
Homeowners covers theft
What are the exclusions to Property Coverages for Homeowners Policy?
- Aircraft except model or hobby
- Animals, birds or fish with the exception of damage caused by deer
- Motor vehicles except for vehicles that are not street legal
- Property of roomers or boarders
- Wind & hail damage to antennas, greenhouses, cloth awnings, and satellite dishes
- Flood, surface waters, backup of sewers or drains. However ensuing losses are covered
- Earth movement or tremors. However ensuing losses are covered
- Wear and tear, deterioration, mechanical breakdown
- Industrial or agricultural smoke
- War, nuclear war, government action
- Mold, fungus, mildew
- Vandalism if property is vacant for more than 90 days
- Theft off premises: building materials, trailers, campers, watercraft or property at a secondary residence
- Business data
- Articles ensured elsewhere
Property subject to limitations under Texas Homeowners Policy
- $200 for money or precious metals (includes gift cards)
- $1,500 for securities, stamps or tickets
- $1,500 for watercraft and trailer on premises
- $1,500 for electronic apparatus and accessories in vehicle
- $1,500 for gems, jewelry, furs for theft (if over this amount, can cover separately by an endorsement)
- $2,500 for loss by theft of silverware, gold ware, platinum ware, tea sets, trays, trophies
- $2,500 for loss by theft of firearms and equipment
- $2,500 for business or office contents on premises ($500 if off premises)
What are the liability coverage for Texas Homeowners policy?
Coverage E - Personal Liability (BI & PD)
Coverage F - Medical Payments to Others
What does Coverage E - Personal Liability BI & PD cover on Texas Homeowner policy?
Pays for legal damages resulting from bodily injury and property damage that the insured is responsible for to third parties.
Basic limit is $100,000 on a per occurrence basis up to 1,000,000
What does Coverage F - Medical Payments to Others cover under Texas Homeowners policy?
Pays BI occurring on the premises or as a result of any insured’s personal activities
Expenses must occur within 3 years from date of accident
Does not apply to the insured or any resident relative unless resident is an employee such as a maid or chauffeur within the scope of their employment
Basic limit is $1,000 per person up to $5,000
First aid
Exclusions to liability coverages under Texas Homeowners policy
Business pursuits ($2,000 or less in income is covered)
Aircraft
Motor vehicles
Bodily injury to any resident family member
Communicable diseases
Physical or mental abuse
Controlled substances
Liability coverages and watercraft under Texas Homeowners policy
Liability coverage protect if following requirements are met:
Inboard or inboard/outboard or jet skis with 50hp or less
Outboards 25hp or less
Sailboats 26’ or less in length
Rented busts of any size
Boats are only covered if on premises
Additional Coverages under Texas Homeowners policy
Claims Expenses - no limit when used to defend an insurer in court plus up to $250 per day in appearance fees
First Aid Expenses - to others when the insured is liable in an emergency
Damage to Property of Others - damage to the property of others caused by the insured with no regard to fault or negligence up to $1,000 replacement cost. (Damage covered by a child under 13 is automatically covered)
Which homeowners policy forms would the owner-occupant of a single family dwelling be eligible for?
HO-8, HO-2, HO-3, HO-5
Which homeowner policy form would a tenant non-owner of a dwelling or apartment be eligible for?
HO-4
Which homeowner policy form would the owner of a residential condo unit be eligible for?
HO-6
What is the limit for tree, shrub, plant and lawns?
$500
What coverage do you have under homeowners policy for business property away from premises?
$500
What coverage do you have under Texas homeowners policy for business property on premises.
$2,500
Under homeowners Coverage C, the personal property of roomers and tenants
Is excluded and may not be covered
According to homeowners Section 1 conditions, an insured is required to submit a signed, sworn, proof of loss within
91 days
Which homeowners forms provide replacement cost coverage for a dwelling?
HO-3, HO-5
Dwelling coverage under a homeowners policy will be suspended how many days after it becomes vacant?
60 days
What are the differences in the personal lability coverage provided by the various homeowners policies?
None
All cover:
BI & PD $100,000 per occurrence
Med Pay $1,000 per person
Homeowners policies cover medical payments to others incurred with
3 years of the date of the accident
Under the additional coverages provided by Section II of a homeowners policy, damage to the property of others is covered for up to
$1,000 per occurrence
If an insurer cancels a homeowners policy for non payment of premium, they must give the insured how many days notice?
10 day written notice
If an insurer cancels a homeowners policy for any reason besides non payment of premium, what notice must be given?
39 day written notice
Homeowners section I covers:
Dwelling and Contents
What is the basic limit per person for medical payments coverage under homeowners policy?
$1,000
What does Section I refer to on homeowners policy?
Property coverage
How is a detached garage building for private use covers on a homeowners policy?
It is covered by the Other Structures provision
What is the limit applicable to unscheduled personal property away from the insured premises in the HO-2 form?
10% of coverage C
$1,000 minimum
Watches, jewelry, and furs are covered under homeowners policy for a maximum of $1,500 for loss by
Theft
