1
Q
package policy
A
a.k.a. multiline policy because it provides property and liability insurance in a single policy = Homeowners policy
2
Q
Homeowners Eligibility
A
- Owner occupied
- 4 family limit
- Primary purpose as a residence
- under construction for owner occupant
- mobile homes require home endorsement
3
Q
Eligibility of Insureds
A
- name insured including a resident spouse
- relatives
- under 21
- full time student under 24
- representative is death
4
Q
cancellation conditions
A
- during the first 60 days for any reason. min 10 day notice
- other after 60 days min 30 day notice
material misrepresentation
substantial change in the risk - nonpayment of premium 10 day advanced notice
5
Q
conditions for nonrenewal by insurer
A
30 day advanced notice
6
Q
standard mortgagee clause
A
- can pay the premium,
- file a claim,
- get cancellation notice,
- dishonesty of insured doesn’t prevent mortgagee from collecting
7
Q
homeowner policies
A
HO-2 Broad Form; owner occupant HO-3 Special Form; owner occupant HO-4 Tenants or Renters HO-5-Comprehensive Form; owner HO-6-Condominium owner HO-Modified Form for special risks
8
Q
property coverage provided by the homeowners policy under section l
A
A-dwelling
B-other structures
C-personal property
D-loss of use
9
Q
what is the standard coverage A minimum limit for HO-6
A
$1,000
10
Q
keys to coverage A
A
Dwelling
- includes property attached
- materials the premises used in construction
- no coverage for a renter
11
Q
keys to coverage B
A
other structures separated by a clear space
2. not attached to dwelling
- not used for business purposes (not included in HO-4 renters policy)
12
Q
keys to coverage C
A
personal property - included in all HO policies
- not attached to the dwelling
- anywhere in the world
- guest’s property (if requested)
13
Q
coverage C exclusions
A
pets, motorized vehicles (unless used to service), property of renters of boarders, credit cards, rental property that is part of the apartment
14
Q
what broad named perils are covered in homeowners insurance
A
all basic perils plus BiG AFFECT
15
Q
coverage D keys
A
loss of use - included in all HO policies
- additional living expenses covered if loss makes residence uninhabitable
- if renters affected policy cover the loss of fair rental value
- civil authority loss - rental covered for two weeks
16
Q
special limits of coverage with theft clause
A
jewelry, firearms, silverware
17
Q
2,500 limit
A
- theft of firearms,
- theft of silverware,
- property on the residence premises used primary for business purposes
18
Q
basic named perils
A
basic
fire, lighting, internal explosion
extended coverages
WCSHAVVER V&MM
theft
19
Q
Basic named perils: theft coverage exclusions
A
- theft by insured,
- dwelling under construction,
- from rental portion of premises,
- theft of watercraft off of the premises,
- mysterious disappearance
20
Q
broad named perils
A
basic + EC + big affect + smoke
burglary ice glass accidental discharge freezing falling electrical current tearing asunder
smoke by fireplace
21
Q
coverage limit for tree, shrub, other plant removal
A
5% of the Coverage A limit
$500 max per tree
In HO-4 and HO-6 the limit is 10% of the Coverage limit for C
22
Q
what does property removed cover
A
protects from a sure and certain loss
protects from all covered perils for 30 days
23
Q
Max for credit card theft or counterfeit money
A
$500
No deductible
24
Q
Max for Loss Assessment by a Homeowners Association
A
$1,000
damage to property caused by peril
deductible apply once
25
Glass or Safety Glazing Material covers what and isn't available in what HO-policy
covers glass not available in 8
26
Homeowners form contain what additional coverages with no additional premium
```
debris removal
reasonable repairs
tree, shrubs, and other plants
fire dept. service charge
property removed
credit card, forgery
loss assessment
8. glass
```
27
what losses are paid at ACV
personal property
awnings, carpeting, appliances, outdoor antennas and outdoor equipment
structures that are not building (swimming pools, fences)
28
what losses are paid at replacement cost
losses to the dwelling and other structures if insurance carried is at least 80% of replacement cost
29
what is the permitted incidental occupancies
removes 2,500 limit on business personal property
30
9 categories for scheduled personal property
```
jewelry
furs
cameras
musical instrument
silverware
golf equipment
fine arts
stamps
coins
```
31
what are the coverages provided under section2
E-personal liability
| F- medical payments to others
32
base limit for E and F coverage
E-100,00
| F-1,000/ person
33
which policy covers damages that the insured is legally obligated to pay
Coverage E
34
watercraft coverage
covers
1. sailboats less than 26 feet in length
2. 50 horsepower or less (inboard motors)
3. 25 horsepower or less (outboard motors)
35
person injury endorsement covers what
non bodily injury claims. hurt feelings, slander, libel
36
business pursuits endorsement
coverage for a business conducted away from the residence premises
37
permitted incidental occupancies endorsement
liability for home based business
38
which policies cover theft
all homeowners not automatically included in dwelling property
39
what class of personal property has special limits for theft but not for any other type of loss
firearms
40
what unendorsed policy provides open perils coverage on Coverage C personal property
HO-5
| comprehensive policy is an open peril contract on personal property
41
equation for insurance payment when 80% coinsurance isn't met
(amount of insurance carried) / (amount of insurance required) * (amount of loss) - (deductible) = what the insurance company will pay
42
What HO-3 endorsements will change coverage on specifically identified personal property from named peril to open peril
scheduled personal property endorsement allows the insured to separately schedule one or more the 9 major categories (fur, fine arts , etc.) -property with high value
the coverage is provided on an open peril bases with no deductible
43
what will the insurance company pay if 80% replacement cost isn't met
will at least pay the actual cash value of the loss or an amount between ACV and replacement cost
payment will be which is ever greater between
1. ACV
or
2. (policy limit) / (80% of replacement cost) * (cost to repair or replace) - (deductible) = payment
44
standard exclusions in the homeowners forms
power failure occurring away from the insured's premises, earth movement, water damage from flood or surface water
45
when does the insurance-to-value provision apply
when the coinsurance clause isn't met (80% of the total value of the property being insured)
46
coverage to protect you if you damage property while conducting business
business pursuits endorsement
47
mobile home can be insured under what type of policy
special endorment
vs. duplex, etc. is unendorsed
48
max credit card fraud
500
49
what does HO-2 cover
this broad form policy covers property and personal property on a named-peril basis.
50
office and apartment buildings covered with what
a commercial property
51
what type of watercraft may be covered under a dwelling policy.
rowboats and canoes
52
in a homeowners policy, personal property is covered up to what
10% of the coverage C limit
53
what is the amount of coverage for personal property
50% of coverage under an HO-2 policy
54
what percent of personal property is applied to property not located at the insured's primary residence
10% of the personal property limit
55
Coverage D covers?
loss of use
56
loss of rent due to tenant having to move out due to damage caused my a covered peril is covered under what
coverage D
| loss of use
57
homeownerss policy excludes liability arising out of what
the rental part of the premises except for the rental part of an insured location as a residence
58
what are appurtenant structures
any structure set apart from the dwelling by clear space
59
how is personal liability coverage added to a dwelling or homeowner policy
it is added by endorsement to the dwelling policy but automatically included in the homeowners policy
60
a special limit of $1,500 is applied to what
jewelry
watches
furs
precious stones
61
insurance limit of coverage B
10% of Coverage A
62
freezing of plumbing and related system is covered under what
broad peril coverage. not basic
63
collapse is included in which HO policies
2,3,4,5,6
64
which HO policies pay replacement cost for a dwelling or other structures
2,3,5
65
all of the HO forms provide identical what
liability coverage
66
what is excluded from all homeowners policies?
water damage, earth movement, power failure away from home
67
what's included in all homeowners policies
debris removal and reasonable repairs
