Unit Seven Homeowners Insurance

Question 1

What is the homeowners policy?

Answer 1

A package policy or multi Line policy because it provides property and liability insurance to a single policy

Question 2

How do you become eligible for the homeowners policy?

Answer 2

• owner occupied
• no more than four family dwelling
• primary purpose as a residence
• dwelling under construction are eligible
• Mobile homes(require mobile home endorsement)
• Farm dwellings are not eligible

Question 3

What is a HO – 2 policy

Answer 3

Broad form-owner occupant

Question 4

What is a HO-3 policy?

Answer 4

Special form-owner occupant

Question 5

What is a HO-4 policy?

Answer 5

Tenants or renters

Question 6

What is a HO-5 policy?

Answer 6

Comprehensive form-owner occupant

Question 7

What is a HO-6 policy?

Answer 7

Condominium owners

Question 8

What is a HO-8 policy?

Answer 8

Modified form and this is the most basic policy you can get

Question 9

What is coverage A?

Answer 9

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

Question 10

What is coverage B?

Answer 10

Coverage B-other structures covers other structures on the residence premise that are separated by clear space this includes structures connected to the dwelling by fence utility line or similar connection

Question 11

What is coverage B?

Answer 11

Coverage B-other structures covers other structures on the residence premise that are separated by clear space this includes structures connected to the dwelling by fence utility line or similar connection

Question 12

What is coverage C?

Answer 12

Coverage C- personal property provides coverage for personal property owned or used by an insured with property is anywhere in the world as well as guests property if requested

Question 13

List the three exclusions in coverage C

Answer 13

• pets
• motorized vehicles, unless used to service the premises
• property of renters or borders

Question 14

Other additional coverages in HO-2,3,and 5?

Answer 14

• collapse caused by a peril, not including an earthquake
• landlords furnishings-$2,500
• grave markers - $5000
• ordinance or law-increased cost up to 10% x dwelling limit

Question 15

What are three additional coverages included in all homeowners forms?

Answer 15

• debris removal
• reasonable repairs
• trees, shrubs, and other plants

Question 16

Watercraft coverage

Answer 16

• sailboats less than 26 feet in length
• boats(not sailboats) with outboard motors of 25 hp or less

Question 17

What is the acronym bailed stand for?

Answer 17

Bonds
Aids
Interest
Loss of earnings
Expenses
Defense cost