homeowners insurance
a common form of insurance for owner-occupied dwellings that also includes personal liability insurance
What are the eligibility requirements for homeowners insurance coverage?
Building must have no more than 4 units, and policyholder must live in at least one.
If not the building owner → must own or rent a unit inside.
Building must be used primarily as a residence (some home offices allowed, but business property/activities usually excluded).
Building cannot be part of a farm (farm insurance required instead).
Who can be a named insured?
Owner and occupant of the dwelling
Someone owning or occupying part of a dwelling
Owner of a building under construction
Tenants with renters insurance
Spouse of the primary named insured (automatic)
Homeowner’s primary lender (sometimes listed)
Secondary lenders (added via endorsement)
Who else is covered under a homeowners insurance policy besides the named insured?
Family members living with the named insured (spouses, children, parents, others)
Non-relatives under 21 who live with and are cared for by the insured
Full-time college students related to the insured, under 24, who lived with them before school
Domestic workers for liability coverage during work
What happens to homeowners insurance coverage after the named insured dies?
Partially transfers to the legal representative
Covers liability at the deceased’s residence
Covers damage to the deceased’s property
Does NOT cover the representative’s personal belongings or accidents away from the residence
What are the business use exclusions under Coverage B in homeowners insurance?
Detached structures aren’t covered if used for business purposes (e.g., garage as office, shed storing employer’s property, or rented to non-residents). Exceptions: still covered if rented only as a private garage or if stored business property belongs to the insured/tenants. Coverage B applies only to the structures, not personal or business property inside.
special limits of liability
in property insurance, coverage limits on some highly valued items, such as jewelry, furs and documents
scheduling
in insurance, itemizing a person’s valuables and insuring each item for a specific amount
blanket insurance
insurance that applies to multiple items within a collection
How much Coverage C is typically provided?
Usually 50% of Coverage A (dwelling coverage).
Example: $100,000 dwelling → $50,000 personal property coverage.
How are belongings valued under Coverage C?
Standard: Actual Cash Value (replacement cost – depreciation)
Optional: Replacement Cost Coverage (higher premium)
How can valuable items be insured beyond Coverage C’s special limits?
By scheduling valuables (specific insurance). Each item is listed and insured for a stated amount. Payout is the least of: replacement cost, repair cost, actual cash value, or scheduled amount.
What benefits are included under Coverage D?
Additional living expenses (lodging, meals, etc.)
Fair rental value reimbursement when a rented portion of the dwelling is unusable
How much is typically provided under Coverage D?
Usually 30% of Coverage A.
Example: $100,000 dwelling → $30,000 Loss-of-Use.
Renters/condo owners: 30–50% of contents coverage.
Does Coverage D continue after the policy period ends?
Yes, benefits continue after expiration if the damage occurred while the policy was active and the residence remains uninhabitable.
How are additional living expenses calculated?
Insurer reimburses only the increase in expenses (post-loss minus pre-loss).
Example: $400 food cost before → $600 after → $200 reimbursed.
How does Coverage D apply when civil authorities restrict access?
If access is blocked by government officials due to nearby damage from a covered peril:
Homeowners: Additional living expenses covered for up to 2 weeks
Landlords: Fair rental value covered on a prorated basis for up to 2 weeks
What does Coverage E (Personal Liability Protection) provide?
Liability insurance (usually $100,000+) for bodily injury or property damage to others caused by the insured’s negligence.
How does Coverage E handle property damage liability?
Covers negligent property damage to others
Pays up to $1,000–$1,500 for another person’s damaged property even without negligence (ex: child under 13 causes intentional damage)
How does Coverage E handle legal defense?
Insurer pays defense costs in lawsuits, even if frivolous
Costs are in addition to policy limits (don’t reduce coverage amount)
Insurer chooses legal team and can settle cases
Insured reimbursed for lost income (up to $250/day) if involved in defense
Coverage F
Pays up to $1,000 per person for medical expenses if a third party is injured by the insured, the insured’s property, activities, employee, or pet — regardless of fault.
How long after an accident can Coverage F medical expenses be claimed?
Within 3 years after the accident.
Who qualifies for Coverage F benefits?
Injured on the insured’s property (not trespassing)
Injured directly by insured or insured’s activities
Injured by insured’s household employee while working
Injured by insured’s pet
Injured near insured’s property due to property’s condition
What is covered under the HO-1 (Basic Form) homeowners policy?
Rarely sold today; provides limited protection with broader exclusions. Covers property losses from named perils:
Fire
Lightning
Wind
Civil commotion
Smoke
Hail
Aircraft/vehicles
Volcanic action
Explosions
Riot
Vandalism/malicious mischief
Theft
Note: Same perils as fully endorsed DP-1 plus theft.
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Level 1 Chapter 129
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Level 1 chapter 236
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Level 1 chapter 351
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Level 1 chapter 442
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Level 2 chapter 120
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Level 2 chapter 229
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Level 2 chapter 360
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Level 3 chapter 116
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Level 3 chapter 278
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Level 3 chapter 336
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Level 4 Chapter 134
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Level 4 chapter 2 Business Interruption Insurance38
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Level 4 Chapter 3 Marine Insurance19
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Level 4 chapter 4 Assorted Commercial Property Products56
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Level 5 Chapter 1 Personal Lines Casualty Insurance103
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Level 5 chapter 2 Assorted Personal Lines Casualty Products17
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Level 6 Chapter 1 Commercial Lines Casualty Insurance90
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Level 6 Chapter 2 Commercial General Liability Insurance48
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Level 6 chapter 3 Employment Practices Liability Insurance29
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Level 6 chapter 4 Workers' Compensation and Employers' Liability Insurance66
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Level 6 chapter 5 Professional Liability/Errors and Omissions Insurance35
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Level 6 Chapter 6 Cyber Insurance36
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Level 6 Chapter 7 Miscellaneous Casualty Insurance Products45
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Level 7 chapter 1 Texas Laws and Rules107
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Level 7 Chapter 2 Texas Laws and Rules (Property and Casualty)101
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Missed information32
