Shalise Q&A Dwelling and Homeowners Policies (14%)

What coverage forms are available under the homeowners program?

HO-2 - Broad Form
HO-3 - Special Form
HO-4 - Contents Broad Form
HO-5 - Comprehensive form
HO-6 - Condominium Unit Owners
HO-8 - Modified Coverage Form

What is the purpose of a homeowner's policy?

Homeowner's policies are designed to cover dwellings used primarily as a private home.

What homeowners form provides protection losses from named perils?

HO-2

What type of coverage is expanded upon from HO-2 to HO-3?

The peril of vehicles insured for the personal property is expanded. Vehicle damage to fences, driveways or walks is covered by a HO-3 even if the damage is caused by an insured or resident.

What type of coverage does the HO-4 provide?

Tenant Broad Form coverage for Personal property and personal liability (no dwelling coverage)

What is covered under the HO-5?

Comprehensive Form- Both the dwelling and other structures on an open peril basis. It also covers personal property under Coverage C on an open peril basis, with the exception of "landlord Furnishings" in an apartment that is rented.

Under HO-6, where may business property be stored?

In the insured's condo, but only if it's not flammable

When replacement coverage cost is not reasonable, what type of HO coverage is applicable?

HO-8

What is the difference between the insured and the insured location?

The insured is the person who owns the insured location.

What is the personal property special limitation for theft of firearms? Furs? Letters of credit?

� Theft of Firearms: $2,500
� Theft of Furs: $1,500
� Letters of Credit: $1,500

For what does Loss of Use coverage provide?

The loss of use coverage in the Homeowners Policy will pay for either the additional living expenses or fair rental value if the premises becomes uninhabitable due to a covered loss.

What does debris removal cover on a homeowners policy?

(Other than a HO-8) Debris Removal will pay reasonable expense for the removal of debris of covered property if a "peril insured against" that applies to the damaged property causes the loss, or ash, dust or particles from volcanic eruptions that caused d

Is liability coverage provided with all HO forms?

Yes

What type of coverage is provided with all HO forms?

Personal Liability and Medical Payments to Others. (Section II- Liability Coverages)

What type of coverage is provided by Coverage E- Personal Liability?

Personal Liability Coverage will respond if a claim is made or a suit is brought against an insured for damages because of bodily injury or property damage caused by an occurrence to which the coverage applies.

What additional coverages are included with the liability section of the HO policy?

� Claims Expense
� First Aid to Others
� Damage to Property of Others
� Loss Assessment Coverage

What must an insured do if a loss occurs?

� Provide the insurer with prompt notice of the loss
� Notify the police if a loss is caused by theft
� Notify the Credit Card or fund Transfer Company if the loss is covered under the Credit Card and Fund Transfer Card coverage.
� Protect the Property fr

When does the insurer's duty to settle for defend suites end?

When the limit of liability for the occurrence has been exhausted by payment of a judgment or settlement.

What endorsement should be used if the insured operates a home day care business out of the insured residence?

Home Day Care Coverage

What does the personal injury coverage endorsement provide?

Personal Injury Coverage, including injuries that result from false arrest, libel, slander, defamation of character, and invasion of privacy may be added by endorsement.

Which HO Forms may only be written for the owner-occupant of the dwelling?

HO-2, HO-3, HO-5 and HO-8

True or False: Each homeowners policy must include Property Coverage under Section I and Personal Liability under Section II. Section I is identical regardless of the form.

False: Section II is identical regardless of the form

Which Homeowners Form(s) provides building coverage on a replacement cost basis if the building is insured for 80% or more of its replacement cost? Which form(s) provides coverage on an actual cash value basis?

HO-2, HO-3, HO-5
HO-8

Which Homeowners Form(s) is intended for Tenants of a property?

HO-4

Which Homeowners Form(s) does not include Dwelling coverage?

HO-4 and HO-6

Define: Insured.

The named insured and residents of the premises who are relatives or under age 21 and are under the care of the insured.

Define: Insured Location.

� The residence premises or any other premises at the same location , or part of it used by the insured as a home and described in the declarations
� A premises newly acquired for use as a residence by the insured during the policy period.
� A premises no

Define: Residence Employee.

Includes employees of the insured whose duties are related to the maintenance or use of the home, including doing similar duties elsewhere.

Define: Residence Premises.

Includes the 1 family dwelling in which the insured resides and is described in the declarations, including other structures and grounds. It also includes up to a 4 family dwelling if described in the declarations and if the insured resides in at least 1

Which Homeowners form(s) includes replacement cost?

HO-2, HO-3, HO-5

Name the Homeowners Property Coverages in order with their appropriate letter:

A. Dwelling
B. Other Structures
C. Personal Property
D. Loss of Use
E. Personal Liability
F. Medical Payments to others

True or False: The HO-6, condominium unit-owners policy provides $5,000 of dwelling coverage for property that is part of the owned residence if the insured is obligated to insure it because of the condominium association agreement, including appliances,

False: only $1,000 is provided.

Under Other Structures, a basic amount of insurance equal to __% of Coverage A limit is included for other structures.

10%

Which Homeowners Form does not include personal property?

Trick question: All Homeowners Policy forms include Personal Property Coverage.

What is the Minimum percentage that Coverage C can be in relation to Coverage A?

40%

How is the Worldwide Coverage more broad in a homeowners Policy than a Dwelling policy?

The Full Coverage C limit applies to personal property while it is located anywhere in the world. (except for coverage under the HO-8)

How is the Property of Others different in a Homeowners Policy than a Dwelling policy?

The property of others may be covered while it is on the residence premises.

How is Property located at another residence premises covered differently on a Homeowners policy than a Dwelling policy

Personal property usually located at another residence of the insured is covered for the larger of $1,000 or 10% of the Coverage C limit.

True or False: Lawns, plants, shrubs, and Trees are automatically covered on a Homeowners policy in case of fire.

False; you can purchase an additional coverage to cover these things from fire, lightning, explosion, riot or civil commotion, aircraft, nonowned or operated vehicle, vandalism or malicious mischief or theft. (Does not come on policy Automatically)

Removal Coverage is provide for up to __ days for loss or damage to property removed from the premises to protect it because of endangerment by covered peril.

30

___________ coverage is provided to cover the expenses incurred by the insured to make reasonable repairs to protect property from further damage following loss by a covered peril.

Reasonable Repairs

What is Medical Payments to Others Coverage?

This coverage is included to pay for necessary medical expenses incurred within 3 years of an accident.

Which Peril(s) in this list is not a peril insured against in the Homeowners HO-2 Policies?
� Removal
� Explosion
� Flood
� Volcanic Action
� Riot or Civil Unrest
� Falling Objects

Flood

True or False: Land and Animals are excluded property and are not covered in any of the Homeowners coverage forms.

True.

What is a Dwelling Policy used to insure?

1 to 4 residential dwellings hat are not eligible for coverage under the regular homeowners program because of age, location, value or other factors.

What are permissible incidental occupancies, and what do they include?

Certain incidental business occupancies may be covered by endorsement if they are conducted by the insured on the dwelling premises and there are not more than 2 persons working at any time. They include small service operations such as barbers, tailors,

What are extended covered perils?

WHARVES: Windstorm, Hail, Aircraft/Vehicle, Riot/Civil commotion, Volcanic eruption, Explosion, Smoke

What is covered in burglary damage?

Any Covered Property, (not just the building) But nothing is covered if the property has been vacant for more than 60 days.

What perils are insured against in a special form policy?

All perils are insured except those specifically excluded

What does Fair Renal Value include?

If property under Coverage A, B or C becomes damaged or destroyed and unfit for normal use, the policy will pay the fair rental value of the described premises or part of it used as a rental property. Fair Rental Value does not included expenses that woul

What is the purpose of removal, and how long does the coverage last in a dwelling policy?

The Policy will pay for loss or damage to property removed from the insured premises when threatened by a peril insured against. Perils insured against is converted to "open peril" coverage during the process or removal. The basic form policy provides cov

When does Worldwide Personal Property Coverage Apply? What is not covered?

The insured may elect to apply up to 10% of the personal property limit to pay for losses to personal property away from the premises. Property of guests and servants are not covered away from the insured premises.

What happens when the Automatic Increase in Insurance endorsement is added to a policy?

Automatic increase in Insurance is an endorsement that may be added to a dwelling policy to increase the amount of insurance by an annual percentage to offset the effects of inflation, this endorsement required additional premium.

What are the three additional coverages in personal liability supplement coverage?

1. Claims Expense
2. First Aid to Others
3. Damage to the Property of Others

Name the 5 Property Coverages in Order and with their corresponding letters.

A. Dwelling
B. Other Structures
C. Personal Property
D. Fair Rental Value
E. Additional Living Expenses