Chapter 4: Homeowners Policy

The amount an insurer will pay under Coverage D, Loss of Use, depends on

The amount of coverage on the dwelling

First aid costs for others injured on the insured's premises

Are paid in addition to the liability limit

An insured runs a day care in her home. She has purchased the home day care endorsement under her homeowners policy. What's covered?

A child trips over a toy in the driveway, cuts her knee and requires stitches

Who is covered by an HO-4 policy?

Tenants

The Business Pursuits endorsement under Section II of a homeowners policy will cover all of the following EXCEPT

Business liability

Which of the following endorsements is used to insure Coverage C, personal property for values beyound the limitations of the homeowners policy?

Scheduled personal property endorsement

The insured with a homeowners policy has had damage to his property caused by a volcano. Which of the following is true?

All volcanic eruptions within 72 hour period will be considered one occurrence

Several insureds have become liable because of a single loss. How will the policy's limit of liability be affected?

No more than the per occurrence limit applies, no matter how many insureds are involved

Which of the following losses would NOT be covered by a homeowners policy?

A coin collection valued at $500 lost in a fire, no more than $200 for coins

An insured has a personal property replacement cost endorsement. If an expensive painting is stolen, what will the insured receive?

Nothing, excludes art and antiques

Which of the following best describes liberalization clause in a policy?

Changes that broadens coverage

Which of the following would NOT be considered an insured under a homeowners policy?

A divorced spouse living in another state

In earthquake coverage provided by endorsement in a homeowners form, one or more earthquake shocks would be considered a single earthquake in what time period?

72 hours

Losses that result from the freezing of a plumbing system while the dwelling is vacant would be EXCLUDED unless

The insured had drained the plumbing system

If the insured owns a watch valued at $10,000, full coverage can be provided on a homeowners policy by purchasing the

Scheduled personal property endorsement

Which of the following losses would be covered by an unendorsed homeowners policy?

Fire or lightning

An insured couple owns a pontoon boat. Which situation would NOT be covered by their watercraft endorsement under their homeowners policy?

A friend rents their boat and runs it into a neighbor's dock

When is liability coverage included in a homeowners policy?

It is included automatically

Under Coverage C of a homeowners policy, the amount of insurance provided to cover personal property of the insured is

50% of the amount provided as Coverage A

An insured with a homeowners policy has removed property from the insured location. It applies for

30 days

Coverage F, medical payments under a homeowners policy would cover

A residence employee who is injured on the job

Which of the following could be covered by an HO policy?

An oriental rug in an on-premises apartment

All of the following are additional liability coverages automatically provided in a homeowners policy EXCEPT

Personal injury

Which of the following homeowners forms is designed for individuals that own and reside in a condominium?

HO-6

An insured has a homeowners policy and is required to be a member of the homeowners association in her neighborhood. It burned down and assessed $1200. How much?

$1,000

Limited fungi, wet or dry rot or bacteria endorsement in HO policies applies to

Property and liability losses

Which policy condition in HO policies states that insurance applies separately to each insured?

Severability of insurance

Which of the following claims does NOT fall under the scope of liability coverage of Section II of HO policy?

The named insured is borrowing a friend's jacket which is later damaged

How much is covered for debris removal under the HO property additional coverages?

All reasonable costs

Under the HO-4 and HO-6 homeowners policy forms, property is insured against

Broad form perils

Damage to insured property caused by earth movement or earthquake is covered under which of the following HO forms?

None

Which of the following HO endorsements covers liability exposures arising from an incidental business conducted within a building on the residence premises?

Permitted incidental occupancies

Which of the following coverages is included in an unendorsed HO policy?

Medical payments to others

Which of the following examples of losses paid under an HO-3 also would be paid under an HO-2 HO policy?

Damage to the dwelling caused by lava or dust from a volcanic eruption

The contents coverage on a HO policy would pay how much after the loss of one of a pair of golden candlesticks?

The difference in the actual cash value as a pair and as a single

According to the loss payment condition in HO policies, losses must be paid within how many days of the insurer receiving proof of loss?

60 days

Homeowners policies provide coverage for

Business property while on the residence premises

The main difference between an HO-4 and an HO-6 is

HO-6 provides limited dwelling coverage as well as contents coverage

How much coverage is provided under a HO policy for theft or unauthorized use of a credit card?

$500

While cutting grass in your yard with your brother's borrowed lawnmower, the fuel line ruptures and the lawnmower is destroyed in the fire. How will your HO liability react?

It will cover the damage