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Homeowners and Dwelling Insurance

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Licensure Insurance (Quizzes) Quiz on Homeowners and Dwelling Insurance, created by Heather Donaldson on 21/07/2016.
Heather Donaldson
Quiz by Heather Donaldson, updated more than 1 year ago
Heather Donaldson
Created by Heather Donaldson almost 8 years ago
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Resource summary

Question 1

Question
The homeowners form which provides all risk coverage on the dwelling and broad coverage on personal property is:
Answer
  • HO-3
  • HO-6
  • HO-8
  • HO-4

Question 2

Question
Which of the following can be insured under an unendorsed homeowners policy?
Answer
  • 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

Question 3

Question
Each of the following is a coverage under section 1 of the homeowners form EXCEPT
Answer
  • Other structures
  • Dwelling
  • Personal property
  • Medical payments

Question 4

Question
Which of the following coverages is available under the homeowners policy but not under the dwelling policy?
Answer
  • Dwelling
  • Other Structures
  • Personal property
  • Liability

Question 5

Question
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?
Answer
  • $58,000 on coverage A
  • $60,000 on coverage A minus 10%
  • $60,000 on coverage A
  • $48,000 on coverage A

Question 6

Question
Which of the following are true of the loss of use coverage of a homeowners policy?
Answer
  • 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

Question 7

Question
A homeowners endorsement used to provide stated value coverage for one or more on nine categories of personal property?
Answer
  • Scheduled personal property
  • Personal effects
  • Personal article
  • Personal property

Question 8

Question
Scheduled personal property would include:
Answer
  • The building scheduled under the policy
  • Jewelry, furs, firearms, cameras, etc
  • Personal possessions such as furniture and cooking utensils
  • Autos and trailers

Question 9

Question
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:
Answer
  • 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.

Question 10

Question
What coverage would be the same on an HO-3 and HO-8?
Answer
  • Dwelling coverage and medical payments
  • Loss of use and dwelling coverages
  • Personal liability and medical payments
  • Theft and dwelling coverage

Question 11

Question
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?
Answer
  • HO-2
  • HO-4
  • HO-6
  • DP-1

Question 12

Question
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?
Answer
  • House, garage, and auto.
  • Auto only
  • Garage only
  • No coverage at all

Question 13

Question
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?
Answer
  • $16,000
  • $17,500
  • $40,000
  • $36,000

Question 14

Question
An HO-4 is sometimes referred to as:
Answer
  • The condo form
  • The renter's form
  • Special risk insurance
  • All risk personal property

Question 15

Question
What type of homeowners policy would be purchased to protect a tenant?
Answer
  • HO-4
  • HO-6
  • HO-8
  • HO-3

Question 16

Question
An HO-4 would cover:
Answer
  • Apartment buildings
  • An apartment tenants personal property
  • Structural loss
  • Equipment belonging to the landlord

Question 17

Question
What coverage does an HO-4 provide?
Answer
  • Broad form personal property
  • All risk personal property
  • All risk on structure; broad form on personal property
  • All risk on personal property; all risk on structures

Question 18

Question
What coverage does and HO-6 provide?
Answer
  • Broad form coverage on personal property of a condo owner.
  • All risk coverage on personal property of a condo owner
  • All risk on structure; broad form on personal property
  • All risk on structure; all risk on personal property

Question 19

Question
What provides all risk coverage on both personal and real property?
Answer
  • HO-3 endorsed with an HO-5
  • HO-6
  • HO-4
  • HO-8

Question 20

Question
An HO-8 is similar to
Answer
  • HO-1
  • HO-2
  • HO-3
  • HO-4

Question 21

Question
Which of the following would be correct about the minimum limits in section 2 of the homeowners policy?
Answer
  • 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

Question 22

Question
Medical payments under a homeowners policy section #2 would cover:
Answer
  • Insured
  • Insured, spouse, and all family residing in home
  • Insured, family, and guests
  • Guests on the premises

Question 23

Question
Who can never collect under section #2 of a homeowners policy?
Answer
  • A person hurt on the premises
  • A neighbor
  • An uninvited guest
  • A resident family member of the insured

Question 24

Question
Which of the following would be covered under section #2 of a homeowners policy?
Answer
  • 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

Question 25

Question
Which of the following would not be covered under the comprehensive liability section of a homeowners policy?
Answer
  • 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

Question 26

Question
Under a homeowner's policy, what is the limit for business equipment in the home and used for business purposes?
Answer
  • 0
  • $500
  • $1000
  • $2500

Question 27

Question
Which of the following would be covered under a homeowners policy?
Answer
  • 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.

Question 28

Question
If jewelry is stolen and the owner had a homeowner's policy, what, if anything, would the company pay?
Answer
  • Nothing
  • Pay up to the special limits in the policy
  • Pay unlimited amounts
  • None of the above

Question 29

Question
On a homeowner's policy, personal property away from the premises will be covered up to what percent of personal property?
Answer
  • 10%
  • 20%
  • 50%
  • Full limit of personal property

Question 30

Question
Which of these is true about a personal article floater?
Answer
  • 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

Question 31

Question
Companies that sell homeowners policies in California:
Answer
  • Must offer earthquake insurance
  • Must include earthquake insurance
  • Must offer earthquake insurance only in certain areas of California
  • Never offer such coverage

Question 32

Question
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?
Answer
  • $9,200
  • $10,000
  • $16,000
  • $20,000

Question 33

Question
Section 2 of a homeowners policy covers:
Answer
  • 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

Question 34

Question
Under a standard unendorsed homeowners policy, what would not be covered?
Answer
  • Fire damage
  • Other structures on the property
  • Personal liability
  • Loss due to changes in construction code (ordinance or law regarding construction)

Question 35

Question
An HO-3 would provide coverage for:
Answer
  • Damage caused by earthquake
  • Damage to furniture while being removed during a fire
  • Damage to personal property caused by floor
  • All of the above

Question 36

Question
Which of the following would an HO-3 cover?
Answer
  • An office building
  • An apartment building
  • Single family, owner occupied, detached dwelling
  • Single family, renter occupied, detached dwelling

Question 37

Question
Ordinance or law coverage in a homeowner's policy applies to which of the following?
Answer
  • 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.

Question 38

Question
A homeowners policy loss protection pays for small building losses to $500 at replacement cost even if replacement cost limits were not met
Answer
  • True
  • False

Question 39

Question
If a homeowner wants coverage for such things as libel and slander, what should the agent tell his client?
Answer
  • 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.

Question 40

Question
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?
Answer
  • Dwelling $100,000; garage $16,000
  • Dwelling $100,000; garage $8,000
  • Dwelling $80,000; garage $16,000
  • Dwelling $80,000; garage $8,000

Question 41

Question
Why might a proeprty owner purchase a homeowner's policy instead of a dwelling policy?
Answer
  • He does not need liability coverage
  • He owns six units and occupies one of the units
  • He wants broader coverage

Question 42

Question
Which of the following would be covered under the personal liability section of a homeowner's policy?
Answer
  • 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.

Question 43

Question
Which of the following situations wuld not be covered under the liability section of a homeowner's policy?
Answer
  • 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

Question 44

Question
In a homeowners policy, coverages A, B, and C refer to:
Answer
  • 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.

Question 45

Question
Under homeowners policies HO-2, HO-4, and HO-6, the coverage for personal property is virtually the same:
Answer
  • True
  • False

Question 46

Question
Who would not be considered an insured for liability protection under a homeowner's policy?
Answer
  • The insured's resident son.
  • The insured's resident spouse
  • The insured's resident 25 year old nephew
  • The insured's non-resident spouse

Question 47

Question
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:
Answer
  • 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.

Question 48

Question
Which of the following may not be covered by a dwelling policy?
Answer
  • 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.

Question 49

Question
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?
Answer
  • $12,000
  • $8,000
  • $4,000
  • $6,000

Question 50

Question
What perils are covered under a basic dwelling policy?
Answer
  • Fire only
  • Fire and lightning
  • Fire, lightning, and smoke damage
  • Fire, lightning, and internal explosion

Question 51

Question
A basic dwelling policy automatically provides coverage against fire, lightning and:
Answer
  • Windstorm
  • Internal explosion
  • Explosion
  • Riot

Question 52

Question
Which dwelling form excludes burglary of personal property?
Answer
  • Basic
  • Broad
  • Special
  • None of the above, all include coverage for burglary of personal property

Question 53

Question
Which of the dwelling (homeowners) policies provide the most coverage?
Answer
  • Basic
  • Broad
  • Special
  • Standard

Question 54

Question
Under a dwelling policy, personal property away from the premises would be covered for what percent of personal property?
Answer
  • 5%
  • 10%
  • 50%
  • 100%

Question 55

Question
All of the following are reasons that a dwelling policy might be used instead of a homeowners policy EXCEPT:
Answer
  • 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

Question 56

Question
Which of the dwelling forms excludes damage due to burglary?
Answer
  • Basic
  • Broad
  • Special
  • All of the above

Question 57

Question
A basic dwelling policy includes all of the following except:
Answer
  • Trees, shrubs, plants, and lawn
  • May include extended coverage
  • May include vandalism and malicious mischief
  • Covers internal explosion

Question 58

Question
A dwelling policy would not provide coverage for:
Answer
  • A dwelling with 2 boarders
  • A dwelling with 5 boarders
  • A detached garage
  • A dwelling used for occasional business by the injured

Question 59

Question
Replacement cost coverage for dwellings is available under:
Answer
  • All dwelling policy forms
  • Only the special dwelling form
  • Only the basic and broad forms
  • Only the broad and special forms

Question 60

Question
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?
Answer
  • 75%
  • 80%
  • 90%
  • 100%
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