Unit 7 P&C Homeowners Insurance

Homeowners Policy

Package policy combining property and liability coverages.

Section I

Section that Covers property.

Section II

Section that Covers liability and medical payments.

Named insured, resident spouse, resident relatives, and certain others in the household.

Who is covered under a Homeowners Policy?

No.

Are farm dwellings eligible for Homeowners coverage?

4.

Maximum number of family units eligible for Homeowners coverage?

HO-2

Broad Form.

HO-3

Special Form.

HO-4

Tenants Form.

HO-5

Comprehensive Form.

HO-6

Condominium Unit Owners Form.

HO-8

Modified Coverage Form.

Broad Named Perils.

HO-2 Coverage Basis

Open Perils on dwelling; Broad Named Perils on personal property.

HO-3 Coverage Basis

Renters.

HO-4 Designed For

Open Perils on dwelling and personal property.

HO-5 Coverage Basis

Condominium owners.

HO-6 Designed For

Older homes.

HO-8 Designed For

10% of Coverage A.

Coverage B Limit

50% of Coverage A.

Coverage C Limit

20% of Coverage A.

Coverage D Limit

10% of Coverage A.

HO-8 Coverage D Limit

Main dwelling and attached structures.

Coverage A Covers

Detached structures such as garages, sheds, fences

Coverage B Covers

Personal property.

Coverage C Covers

Loss of use

Coverage D Covers

10% of Coverage C or $1,000, whichever is greater.

Coverage C Off-Premises Limit

Worldwide.

Coverage C Territory

Yes, upon request.

Can guest property be covered under Coverage C?

Coverage D Civil Authority Benefit

Loss of use coverage for up to 2 weeks.

Wind, Civil Commotion, Smoke, Hail, Aircraft, Vehicles, Volcanic Eruption, Explosion, Riot.

What does WCSHAVVER stand for?

Burglary, Ice/Snow, Glass, Accidental Water, Freezing, Falling Objects, Electrical Current, Collapse, Tearing Asunder.

What does BIG AFFECT stand for?

HO-2 Covered Perils

WCSHAVVER plus BIG AFFECT plus theft.

Open Perils.

HO-3 Dwelling Coverage Basis

Broad Named Perils.

HO-3 Personal Property Coverage Basis

Open Perils for both dwelling and personal property.

HO-5 Coverage Basis

Covers all direct physical loss unless excluded.

What is an Open Peril Form?

The insured.

Theft is not covered if committed by whom?

No.

Is theft covered from a dwelling under construction?

No.

Is mysterious disappearance covered under Homeowners?

flood, earthquake, wear and tear, neglect, government action, war, nuclear hazard, off-premises power failure, intentional loss, faulty construction/materials/equipment

What does HO NOT cover?

Not normally; endorsement required.

Does HO cover mold and fungi?

Up to $1,000 per occurrence.

Debris Removal Coverage

5% of Coverage A.

Tree, Shrub, and Plant Coverage

$500 per tree.

Tree, Shrub, and Plant Limit

$500.

Fire Department Service Charge

$500.

Credit Card/Forgery/Counterfeit Money Coverage

$1,000.

Loss Assessment Coverage

Covered.

Glass and Safety Glazing Material

Limited additional coverage for increased construction costs.

Ordinance or Law Coverage

Actual Cash Value.

Personal Property Loss Settlement

Replacement Cost if insured to at least 80% of value.

Dwelling Loss Settlement

80% of replacement cost.

Replacement Cost Requirement

Personal Liability.

Coverage E

Medical Payments to Others.

Coverage F

$100,000.

Coverage E Base Limit

$1,000.

Coverage F Base Limit

No Fault.

Coverage F Coverage Basis

Expenses must be incurred within 3 years.

Medical Payments Coverage Period

Bodily injury and property damage for which an insured is legally liable.

Coverage E Applies To

Medical expenses of others regardless of fault.

Coverage F Applies To

Bonds, Aid, Interest, Loss of Earnings, Expenses, Defense Costs.

What does BAILED stand for?

Yes.

Are BAILED coverages paid in addition to policy limits?

Worldwide.

Coverage E Territory

Worldwide.

Coverage F Territory

Personal Injury Endorsement

Adds libel, slander, false arrest, invasion of privacy, malicious prosecution, and defamation.

Scheduled Personal Property Endorsement

Increases coverage on high-value property.

Examples of Scheduled Personal Property

Jewelry, furs, fine arts, cameras, silverware.

Personal Property Replacement Cost Endorsement

Pays replacement cost instead of ACV on personal property.

Earthquake Endorsement

Adds earthquake coverage.

Limited Fungi Endorsement

Adds limited mold, fungi, and bacteria coverage.

Permitted Incidental Occupancies Endorsement

Covers certain home businesses.

Business Pursuits Endorsement

Extends liability coverage for certain business activities.

Home Day Care Endorsement

Adds coverage for home day care operations.

Watercraft Endorsement

Extends coverage for larger watercraft.

Pays up to $1,000 per occurrence.

Damage to Property of Others Coverage

Named insured, resident spouse, resident relatives, and qualifying household members.

Who is covered under Coverage E?

Personal property only.

HO-4 Property Coverage covers?

Personal property and interior unit coverage.

HO-6 Property Coverage covers?

Actual Cash Value.

HO-8 Loss Settlement

HO-5.

Most Broad Homeowners Form

HO-3.

Most Common Homeowners Form