Unit 7 Homeowners Insurance Flashcards
Eligibility of Insureds
The names insureds must be the owner occupant of the dwelling or condos, or a renter who maintains a residential occupancy (personal property only)
If the named insureds dies
The policy continues in force with the representative (executor of the estate) of the names insured until the policy can be replaced or expires.
Cancellation condition
The insurance company may cancel for any reason within TEN DAYS written notice to the insured during the first 60 days of a new policy.
After the policy has been in force 60 or more days the company may only cancel for the following reasons:
Material misrepresentation by the insured (30 days notice required)
Substantial change in risk insured (30 days notice required)
Nonpayment of premium (10 days notice required)
Types of HO Policies
HO-2 broad form; owner occupant cheapest
HO-3 special form; owner occupant best
HO-4 tenants or renters (only contents in the building)
HO-5 comprehensive; owner occupant
HO-6 Condos
HO-8 modified for special risks- cheapest & for older houses in rural areas (next to no coverage)
4 separate property coverages are provided by the HO policy under section 1:
Coverage A- Dwelling 80% of RC
Coverage B- other structures 10% of A
Coverage C- personal property 50% of A ( HO-4&6)
Coverage D- loss or use
Coverage A Dwelling
Covers the dwelling and structures attached to the dwelling as well as materials and supplies for repair and construction of those structures if they are located on or next to the residence premises.
HO-4 renters does not insure the dwelling
HO-6 Condo owners does not insure the dwelling, but does include limited Cov A for inside walls and floors. Standard Cov A min limit for HO-6 is $5,000
Special limits of Coverage
$200- money or related property, coins, and precious metals (doesn’t apply to tableware)
$1500- theft of jewelry, watches, furs, and precious & semiprecious stones
$2500- theft of firearms and related equipment
$2500- theft of silverware, silver-plated ware,gold ware, gold plated ware, platinum & pewter ware. This includes flatware, holloware, tea sets and trays and trophies made of or including silver gold or pewter
Coverage D- Loss of Use
First, if a covered property loss makes the residence premises uninhabitable, the policy will cover additional living expenses related to maintaining the insureds normal standard of living.
Trees, shrubs, and other plants
Maximum of $500 per tree and $1,000 for all fallen shrubs and plants for debris removal
Maximum 5% coverage in addition to limit.
Property removed
Covers property against direct loss from any cause while it is being moved bc the premises has been endangered by a covered peril. Coverage is for 30 days.
Coverage E- personal liability
Covers BI & PD
Insured at fault
Anywhere in the world.
The base liability limit provided for any one occurrence is $100,000 but this can be increased for additional premium.
Coverage F- medical payments to others
Pays all necessary medical expenses incurred within 3 years of an accident that causes bodily injury. This coverage applies to injuries.
Coverage F covers injuries to others that occur in the insureds premises or result from the insureds activities.
Coverage F has a base limit of $1,000 per person per accident, but it can be increased for additional premium.
Section II Endorsements
The personal injury endorsement covers the insured from the non bodily injury claims such as libel, slander, false arrest, invasion of privacy, or malicious prosecution.
