The homeowners form which provides all risk coverage on the dwelling and broad coverage on personal property is:
HO-3
HO-6
HO-8
HO-4
Which of the following can be insured under an unendorsed homeowners policy?
A farm or ranch
A mobile home
A dwelling which the owner rents to his distant relatives
A residence in which the owner-occupant also maintains an office for her accounting business
Each of the following is a coverage under section 1 of the homeowners form EXCEPT
Other structures
Dwelling
Personal property
Medical payments
Which of the following coverages is available under the homeowners policy but not under the dwelling policy?
Other Structures
Liability
An insured's dwelling purchased two years ago for $58,000 has a replacement value of $60,000 in order to qualify for replacement cost coverage in the event of a loss, for what amount of insurance must the homeowners policy be written?
$58,000 on coverage A
$60,000 on coverage A minus 10%
$60,000 on coverage A
$48,000 on coverage A
Which of the following are true of the loss of use coverage of a homeowners policy?
It covers additional living costs incurred when the dwelling becomes inhabitable due to a peril insured against in the policy.
When part of the dwelling is rented to others, it covers loss of rent.
Both are true
Neither are true
A homeowners endorsement used to provide stated value coverage for one or more on nine categories of personal property?
Scheduled personal property
Personal effects
Personal article
Scheduled personal property would include:
The building scheduled under the policy
Jewelry, furs, firearms, cameras, etc
Personal possessions such as furniture and cooking utensils
Autos and trailers
A person having a homeowner's policy might wish to add an additional residence premises endorsement to cover a two-family home which she rents in order:
To have protection for $50,000 of furnishings that she provides in her rentals
To protect her from possible liability if a tenant is hurt on her premises
In case someone coming to repair a broken window in the rental unit is hurt while working there.
What coverage would be the same on an HO-3 and HO-8?
Dwelling coverage and medical payments
Loss of use and dwelling coverages
Personal liability and medical payments
Theft and dwelling coverage
Jack owns a condo and he wishes to insure his personal property, have liability coverage, and loss assessment coverage. What policy would meet Jack's needs?
HO-2
DP-1
A person had liability coverage on his car and an HO-3 on his house. An earthquake occurred and there was no sign of damage. An explosion happened several hours later and the garage and car burned. What would be covered?
House, garage, and auto.
Auto only
Garage only
No coverage at all
A man had an HO-4 policy with limits of $60,000 on personal property. While traveling in Europe, he suffered the following THEFT loss:
Clothes and luggage --- $20,000 Jewelry --- $20,000
There was a 20% depreciation. How much of the loss will be covered by his HO-4?
$16,000
$17,500
$40,000
$36,000
An HO-4 is sometimes referred to as:
The condo form
The renter's form
Special risk insurance
All risk personal property
What type of homeowners policy would be purchased to protect a tenant?
An HO-4 would cover:
Apartment buildings
An apartment tenants personal property
Structural loss
Equipment belonging to the landlord
What coverage does an HO-4 provide?
Broad form personal property
All risk on structure; broad form on personal property
All risk on personal property; all risk on structures
What coverage does and HO-6 provide?
Broad form coverage on personal property of a condo owner.
All risk coverage on personal property of a condo owner
All risk on structure; all risk on personal property
What provides all risk coverage on both personal and real property?
HO-3 endorsed with an HO-5
An HO-8 is similar to
HO-1
Which of the following would be correct about the minimum limits in section 2 of the homeowners policy?
Medical payments $1000; personal liability $100,000
Medical payments $2000; personal liability $200,000
Medical payments $3000; personal liability $300,000
Medical payments $4000; personal liability $400,000
Medical payments under a homeowners policy section #2 would cover:
Insured
Insured, spouse, and all family residing in home
Insured, family, and guests
Guests on the premises
Who can never collect under section #2 of a homeowners policy?
A person hurt on the premises
A neighbor
An uninvited guest
A resident family member of the insured
Which of the following would be covered under section #2 of a homeowners policy?
Property damage
Professional liability
The insured's son trips over a sprinkler and breaks his leg
A neighbor's child trips over a sprinkler and breaks his leg
Which of the following would not be covered under the comprehensive liability section of a homeowners policy?
An insured is at a country club, swings his gold club like Mike Russ does, and hits another member over the head.
A guest at your home is hit by a swing on the porch
Your dog is tied to a tree and bites a neighbor's child
A house guest in injured while going to the country club in the insured's auto
Under a homeowner's policy, what is the limit for business equipment in the home and used for business purposes?
0
$500
$1000
$2500
Which of the following would be covered under a homeowners policy?
Flood damage
Earthquake damage
Bodily injury to the insured's son
An article falls off an airplane flying overhead and crashes into the insured's home.
If jewelry is stolen and the owner had a homeowner's policy, what, if anything, would the company pay?
Nothing
Pay up to the special limits in the policy
Pay unlimited amounts
None of the above
On a homeowner's policy, personal property away from the premises will be covered up to what percent of personal property?
10%
20%
50%
Full limit of personal property
Which of these is true about a personal article floater?
It provides "all risk" coverage for personal possessions on an unscheduled basis.
It provides "all risk" coverage for personal possessions on a scheduled basis.
It provides coverage for personal possessions carried by tourists and usually only applies to such property while away from the insured's home.
It is usually an endorsement to a homeowners policy
Companies that sell homeowners policies in California:
Must offer earthquake insurance
Must include earthquake insurance
Must offer earthquake insurance only in certain areas of California
Never offer such coverage
A man had a HO-4 with limits of $30,000 on personal property. While traveling in Europe, he suffered the following loss:
Clothes and luggage --- $10,000 Jewelry --- $10,000
Disregarding any deductible and assuming there is a 20% depreciation on both categories, what would the company pay?
$9,200
$10,000
$20,000
Section 2 of a homeowners policy covers:
Personal liability of the insured on the insured's premises
Insured's 3 year old son who hits another child with a bat
Bodily injury to a guest on the insured's premises and insured's personal liability away from the premises
All the above
Under a standard unendorsed homeowners policy, what would not be covered?
Fire damage
Other structures on the property
Personal liability
Loss due to changes in construction code (ordinance or law regarding construction)
An HO-3 would provide coverage for:
Damage caused by earthquake
Damage to furniture while being removed during a fire
Damage to personal property caused by floor
All of the above
Which of the following would an HO-3 cover?
An office building
An apartment building
Single family, owner occupied, detached dwelling
Single family, renter occupied, detached dwelling
Ordinance or law coverage in a homeowner's policy applies to which of the following?
City law required dogs to be leashed. Your dog is unleashed and bites someone in the park.
City ordinance required swimming pools to be fenced and have self-closing gates. Your gate is not self-closing and a neighbor's child falls in the pool and is seriously hurt.
Your house burns down and you incur more costs as you must rebuild the house to code.
A homeowners policy loss protection pays for small building losses to $500 at replacement cost even if replacement cost limits were not met
If a homeowner wants coverage for such things as libel and slander, what should the agent tell his client?
Not to worry. It is included in the liability section of the homeowner's policy.
Have the client add a personal injury endorsement to the contract.
This cannot be covered under a homeowner's policy. The client will need a commercial general liability (CGL) policy.
Under a homeowner's policy, the dwelling is valued at $100,000 and the garage at $20,000. In order to maintain the proper amount of coinsurance , the insured needs to carry what amount of insurance?
Dwelling $100,000; garage $16,000
Dwelling $100,000; garage $8,000
Dwelling $80,000; garage $16,000
Dwelling $80,000; garage $8,000
Why might a proeprty owner purchase a homeowner's policy instead of a dwelling policy?
He does not need liability coverage
He owns six units and occupies one of the units
He wants broader coverage
Which of the following would be covered under the personal liability section of a homeowner's policy?
A personal liability away from the premises.
The insured's three year old child intentionally hits another child with a bat.
The insured accidentally drops a neighbor's camera and damages it.
All answers are correct.
Which of the following situations wuld not be covered under the liability section of a homeowner's policy?
A vehicle (owned and registered) only driven on the insured's property which includes ten acres of undeveloped land
A 1923 Ford (with no engine) that the insured is restoring in his garage
A gold car which the insured drives on the golf course
A power mover the insured rides to mow his own land
In a homeowners policy, coverages A, B, and C refer to:
Dwelling, medical payments, and liability
Dwelling, other structures, and personal property
Dwelling, other structures, and loss of use
Dwelling, personal property, and loss of use.
Under homeowners policies HO-2, HO-4, and HO-6, the coverage for personal property is virtually the same:
Who would not be considered an insured for liability protection under a homeowner's policy?
The insured's resident son.
The insured's resident spouse
The insured's resident 25 year old nephew
The insured's non-resident spouse
An individual owns a duplex. Because of damage to one of the units, he has a loss of rental income. His insurance would be covered under:
Basic, broad, and special forms of dwelling policies
Broad and special forms only
Not covered as he did not become a member of the household as required in a homeowner's policy
There is no coverage for duplexes.
Which of the following may not be covered by a dwelling policy?
Tenants improvements, alterations, or additions
Detached garage on the insured's premises
The insured's coin collection
Rents an insured may lose if rental property is damaged.
The insured has two separate dwelling policies which cover the same property: policy A for $30,000 and policy B for $60,000. If the insured suffers a $12,000 loss, how much will be paid under policy B according to the other insurance clause?
$12,000
$8,000
$4,000
$6,000
What perils are covered under a basic dwelling policy?
Fire only
Fire and lightning
Fire, lightning, and smoke damage
Fire, lightning, and internal explosion
A basic dwelling policy automatically provides coverage against fire, lightning and:
Windstorm
Internal explosion
Explosion
Riot
Which dwelling form excludes burglary of personal property?
Basic
Broad
Special
None of the above, all include coverage for burglary of personal property
Which of the dwelling (homeowners) policies provide the most coverage?
Standard
Under a dwelling policy, personal property away from the premises would be covered for what percent of personal property?
5%
100%
All of the following are reasons that a dwelling policy might be used instead of a homeowners policy EXCEPT:
To cover a rental property
The insured does not need liability coverage
The home did not qualify for a homeowners policy
The insured wanted broader coverage for a lower premium
Which of the dwelling forms excludes damage due to burglary?
A basic dwelling policy includes all of the following except:
Trees, shrubs, plants, and lawn
May include extended coverage
May include vandalism and malicious mischief
Covers internal explosion
A dwelling policy would not provide coverage for:
A dwelling with 2 boarders
A dwelling with 5 boarders
A detached garage
A dwelling used for occasional business by the injured
Replacement cost coverage for dwellings is available under:
All dwelling policy forms
Only the special dwelling form
Only the basic and broad forms
Only the broad and special forms
When a policy states coverage is based on an insured to value or replacement cost basis, how much insurance must you carry on the dwelling as compared to the total value of the dwelling?
75%
80%
90%
