Lesson 5 part 2: Homeowners
Terms in this set (37)
Covers named perils for buildings and personal property.
Open perils for buildings (dwelling and other structure) and broad perils for personal property.
Provides personal property insurance for tenants who do not own the house or apartment where they reside
Provides open perils coverage for the dwelling, other structures, and personal property. This is also called the comprehensive form. The only HO form that insures against loss for mysterious disappearance.
Primarily for condo owners. The standard Coverage A limit for this is $1,000. Coverage D is 50% of Coverage C.
Modified form. Provides coverage for an older home with replacement value much higher than its current market value. Offers basic coverage on the dwelling and personal property with extended coverage perils and V&MM coverage. Has certain restrictions on valuation of losses.
provides basic named perils coverage for property, personal liability coverage, and medical payments to others coverage. Has been discontinued in most states
Section 1 of HO policy
Section 2 of HO policy
50% of Coverage A
HO- Coverage C limits
Coverage D- Loss of use
If a covered loss renders the insured dwelling uninhabitable.
Additional living expenses, fair rental value, civil authority prohibits use
Three types of expenses insured under Coverage D
Additional Living Expense
This covers the cost of setting up the temporary residence, including rent payment.
Fair Rental Value
This would cover the loss of rent; however, the part of the residence that was rented must be uninhabitable due to the covered loss.
Civil Authority Prohibits Use
If direct damage to neighboring premises causes authorities to prohibit you from being at your house; this would apply.
Loss of Expense Not Covered
The insurance company will not cover loss or expense due to cancellation of a lease or agreement.
HO-4 and HO-6
For all homeowners forms, Coverage A is the primary coverage which will determine the coverage limits for Coverages B, C and D EXCEPT:
10% of Coverage A limit
Coverage B; One of two family dwelling limit
5% of Coverage A limit
Coverage B; Three or Four family dwelling limit
50% of Coverage A limit
Coverage C; one or two family dwelling limit
30% of Coverage A limit
Coverage C; three family dwelling limit
25% of Coverage A limit
Coverage C; four family dwelling limit
Functional replacement value
The amount required to repair or replace the property using common construction materials.
Protects the insured from legal liability for bodily injury or property damage to others.
Pays all necessary medical and related expenses incurred within three years from the date of an accident that causes bodily injury to a guest on the residence premises. Payments are made without regard to the insured legal liability
$1,000 per person per accident
Coverage F limits
Which dwelling form(s) pay losses to the dwelling on an actual cash value basis?
A person may obtain open peril coverage for personal property by purchasing:
$100,000 per occurrence
All of the homeowners forms automatically provide personal liability coverage at limits of:
DP-2 and DP-3
Coverage for damage resulting from the weight of ice, snow, or sleet is included in which Dwelling policy form(s)?
All of the homeowners policy forms would cover a loss due to weight of ice, snow or sleet EXCEPT:
It covers all risk of physical loss
Which of the following statements regarding the HO-2 is NOT correct?
Which homeowners policy form(s) do not provide any Coverage-A, Dwelling coverage?
Losses from vandalism and malicious mischief, and broad coverage for the dwelling and personal property, are characteristics of what coverage form?
up to $2,500 on the premises and for up to $500 while away from the residence premises.
The homeowners policy covers personal property used for business purposes:
Under a homeowners policy, a guest house would be covered under:
Broad named perils
Under HO-2, HO-3, HO-4, and HO-6, personal property is covered against:
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