Homeowners Insurance Flashcards

A collection of vocabulary flashcards covering the key terms, homeowners forms, coverages, and endorsements from Unit 8: Homeowners Insurance.

Multiline Policies

Policies that contain both property and casualty coverages in a single contract, also referred to as package policies.

Homeowners Policy

A multiline policy that provides property and liability insurance in a single contract for owner-occupants of dwellings or condominiums, or for renters.

Section I (Homeowners Policy)

The section of the homeowners policy providing property insurance.

Section II (Homeowners Policy)

The section of the homeowners policy providing liability and medical payments insurance.

HO-2 (Broad Form)

Provides broad coverage for the dwelling and personal property, covering perils similar to the DP-1 plus extended coverage, vandalism or malicious mischief (V&MM), breakage of glass, and theft.

HO-3 (Special Form)

Provides open peril coverage for loss to the dwelling and other structures, while providing broad coverage for personal property identical to the HO-2.

HO-4 (Contents Broad Form)

Designed for tenants who do not own the building; provides broad coverage for personal property only and no coverage for the dwelling.

HO-5 (Comprehensive Form)

Provides open peril coverage for both the dwelling, other structures, and personal property.

HO-6 (Unit-owners Form)

Provides broad coverage on the personal property of condominium owners and very limited dwelling coverage, typically with a standard limit of $1,000$.

HO-8 (Modified Coverage Form)

Designed for older homes where the replacement value far exceeds market value; provides basic coverage similar to DP-1 with extended coverage and V&MM.

Coverage A (Dwelling)

Covers the dwelling and structures attached to it, as well as materials and supplies for repair located on or next to the residence premises.

Coverage B (Other Structures)

Covers buildings on the described premises separated from the dwelling by clear space, with a standard limit of $10\%$ of the Coverage A limit for one or two-family dwellings.

Coverage C (Personal Property)

Covers personal property owned or used by an insured anywhere in the world, with a default limit of $50\%$ of the Coverage A limit for one or two-family dwellings.

Coverage D (Loss of Use)

Provides coverage for additional living expenses and loss of fair rental value if a covered property loss makes the residence premises uninhabitable.

Special Limit for Money

A coverage limit of $200$ for money, coins, and precious metals (excluding tableware).

Special Limit for Securities

A coverage limit of $1,500$ for securities, manuscripts, and other valuable paper property.

Special Limit for Watercraft

A coverage limit of $1,500$ for watercraft including trailers and equipment.

Special Limit for Jewelry (Theft)

A special limit of $1,500$ that applies specifically to theft losses of jewelry, watches, furs, and precious stones.

Credit Card, EFT Card or Access Device, Forgery, and Counterfeit Money

An additional coverage providing up to $500$ for the insured's legal obligation to pay losses from unauthorized use or forgery; no deductible applies.

Loss Settlement (Personal Property)

Under most homeowners forms, losses to personal property are settled on an actual cash value basis, but not more than the cost to repair or replace.

The 80% Replacement Cost Rule

Losses to the dwelling and other structures are paid at replacement cost if the insured carries insurance equal to at least $80\%$ of the building's replacement cost.

Coverage E (Personal Liability)

Covers damages the insured is legally obligated to pay because of bodily injury or property damage caused by an occurrence; includes a standard limit of $100,000$ per occurrence.

Coverage F (Medical Payments to Others)

Pays necessary medical expenses incurred within three years of an accident for injuries sustained by others on the premises or due to the insured's activities, with a standard limit of $1,000$ per person.

Damage to Property of Others

An additional Section II coverage that pays up to $1,000$ per occurrence for property destroyed by an insured without regard to legal liability.

Scheduled Personal Property Endorsement

Provides a separate schedule of insurance for nine major categories of valuable property (such as jewelry or furs) on an open peril basis with no deductible.

Personal Injury Endorsement

Modifies the definition of bodily injury to include injuries such as libel, slander, false arrest, and invasion of privacy.

Business Pursuits Endorsement

Provides liability coverage for a business conducted away from the residence premises.