Which of the following examples of losses paid under an HO-3 also would be paid under an HO-2 homeowners policy?
Damage to the dwelling caused by ash or dust from volcanic eruption
Who is covered by an HO-4 policy?
Tenants
Which of the following homeowners policies covers those who rent their dwelling?
HO-4
The difference in the contents coverage on an HO-3 and HO-5 is which of the following?
Contents are covered open peril on HO-5, and named peril on HO-3
Losses caused by vandalism and malicious mischief are excluded under a homeowners policy if the dwelling had been vacant for more than
60 days
An insured decides to store some heavy boxes in the attic. While moving them around, he accidentally drops a heavy box that crashes through the ceiling, causing $1,000 of damage. The insured's HO-3 policy form will pay
$1,000 minus deductible
Under Section I, homeowners insurance must include
Property coverage
What is the maximum number of boarders per unit that would be allowed in the homeowners policy?
2
The insured's home is covered by an HO-3. Two years ago, the insured bought the home for $58,000. Today, its replacement value is $60,000. How much Coverage A does the insured need to qualify for replacement cost coverage?
$48,000
A house must be insured for at least 80% of its value on the date of loss to qualify for replacement coverage. In this example, 80% of $60,000 is $48,000
An apartment occupant's personal property would be insured under which homeowners form?
Tenant broad form (HO-4)
A home is insured under an HO-2 policy. The homeowner decides to replace the roof on the house. He wasn't able to complete the roof in one day and left a portion of it unfinished overnight. A heavy rainstorm caused $20,000 of damage to the interior of the
Nothing
HO-2 is a named peril policy and rain is not a covered peril. It would pay for the damage caused by rain, if the hole was caused by a covered peril (wind/hail)
Which of the following losses would be covered by an endorsed homeowners policy?
Fire or lightning
Losses that result from the freezing of a plumbing system while the dwelling is vacant would be EXCLUDED under a homeowners policy UNLESS
The insured had drained the plumbing system.
Under the HO-4 and HO-6 policy forms, property is insured against what type of perils?
Broad form perils
Homeowners Policy - Coverage Forms
HO-2 through HO-8
Peril types
Peril types
The dwelling insured on HO-2, HO-3, or HO-5 forms is covered for replacement, provided that it is insured for at least what percentage of replacement cost on the date of loss?
80%
HO-2,-3 & -5 provide replacement cost coverage if the house is insured for at least 80% of its value on the date of the loss
An insured condominium unit owner wants to purchase fire and extended coverage for personal property and liability coverage for himself and his family members. He should purchase
HO-6
Elaborate homes and those with detailed designs or decorative architecture with replacement costs greater than ACV or market value are insured on
HO-8
Which of the following would NOT be considered part of the insured location under the liability section of a homeowners policy?
Vacant farmland owned by the insured
The homeowners policy form that covers condominium unit owners is
HO-6
The main difference between an HO-4 and an HO-6 is
HO-6 provides limited dwelling coverage as well as contents coverage
Which of the following would NOT be considered an insured under a homeowners policy?
A divorced spouse living in another state
All of the following people would be considered insureds under the liability section of a homeowners policy EXCEPT
The mother of the insured who is residing in the household
The legal representative of a deceased insured
The 22-year-old niece of the insur
The 22-year-old niece of the insured who is visiting
Which of the following risks would NOT be eligible for coverage under a homeowners policy?
An applicant who owns and lives on a commercial farm
Theft coverage under an HO-8 is restricted to
The actual cash value of what was stolen, with limits for certain classes of property.
Which one of the following statements regarding coverage for the flood and earthquake perils is true?
Both are excluded perils in all property policies
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 a 72-hour period will be considered one occurrence
According to the appraisal condition of a homeowners policy, what procedure may be followed if the insurer and insured do not agree as to the size of a loss?
Either party may make a written request for an appraisal
The contents coverage on a homeowners policy would pay how much after the loss of one pair of golden candlesticks?
The difference in the actual cash values as a pair and as a single
Which of the following best describes liberalization clause in a policy?
Changes adopted by the insurer that broaden coverage automatically apply to the policy at no additional premium
What is the minimum amount of coverage that should be carried on an HO-2 on a home that was purchased four years ago for $75,000, which today has a replacement value of $100,000?
$80,000
A homeowner, at the time of loss, must be insured for at least 80% of replacement cost in order to collect the full replacement cost of a partial loss.
Which of the following types of property would be covered in any of the homeowners coverage forms?
Landlord furnishings in an on-premises apartment
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
If a loss occurs, the insured with a homeowners policy is required to do the following EXCEPT
Provide the insurer with prompt notice of the loss
Notify the police if the loss is caused by theft
Protect the property from further damage, and keep records of
Arrange for an appraisal by an unbiased third party
Which policy condition in HO policies states that insurance applies separately to each insured?
Severability of insurance
An insured has homeowners insurance on his home and detached garage. He has just completed building another detached garage that he plans to use to store his boat and camper. The insured has also installed an alarm system in his home. In order to add cove
Add an endorsement
Because an insured owns a lot of jewelry, her insurance agent has advised her to purchase a scheduled personal property endorsement. If the insured adds this endorsement to her homeowners policy, which of the following statements would be correct?
Coverage C limits will no longer apply to the jewelry insured by the endorsement
How does the mobilehome endorsement affect the other coverage of law or ordinance in a homeowners policy?
It removes the coverage.
The mobliehome endorsement makes the other coverage of law or ordinance inapplicable to the policy.
Which of the following perils is covered by the HO-2 and HO-3?
Sudden and accidental rupture of a heating system
Limited fungi, wet or dry rot, or bacteria endorsement in HO policies applies to
Property and liability losses