Homeowners Policy

These flashcards cover essential terminology and definitions related to the Homeowners Policy, including types of coverage, exclusions, and conditions.

Homeowners Policy

Comprehensive insurance used to insure residential risks, covering personal property and liability.

Coverage A – Dwelling

Covers the dwelling as specified in the declarations page and materials used for construction.

Coverage B – Other Structures

Covers structures not attached to the dwelling, such as detached garages, up to 10% of Coverage A.

Coverage C – Personal Property

Covers personal property of insured and resident family members, with specific exclusions.

Coverage D – Loss of Use

Covers fair rental value and additional living expense if the property is uninhabitable after a loss.

HO-2 (Broad)

A homeowners policy that covers dwelling and personal property against named perils.

HO-3 (Special)

Covers dwelling and other structures on an open peril basis and personal property on a named peril basis.

HO-5 (Comprehensive)

A homeowner policy that includes coverage for mysterious disappearance.

HO-6 (Unit Owners)

Designed for owners of condominiums, covering personal property and limited dwelling.

Basic Perils

Include fire, internal explosion, lightning, wind, hail, and other specified events.

Exclusions

Conditions under which coverage is not provided, including war, intentional loss, and nuclear hazards.

Liability Coverage

Includes Coverage E for personal liability and Coverage F for medical payments to others.

Claims Expense

Expenses the policy will cover related to legal defense and other costs incurred in claims.

Loss Assessment Coverage

Covers insured's share of loss assessment by a corporation or association of property owners.

Additional Coverages

Supplementary coverage that includes debris removal, fire department service charges, and property removal.

Debris Removal

Covers the reasonable costs to remove debris after a loss, with specifics for tree removal.

Property Conditions

Duties that the insured must perform after a loss, including notifying the insurer and cooperating.

Flood Damage Exclusion

Excludes damages caused by floods, surface water, or waterborne materials.

Earth Movement Exclusion

Excludes damages from earthquakes and other ground failures, though fire from these events is covered.

Cancellation Clause

Conditions under which a policy can be canceled by the insurer or the insured.

Subrogation

Insurer's right to recover losses paid in claims from third parties responsible for the loss.

Legal Representative

The person considered insured under a policy concerning property of a deceased named insured.