D. Any person legally responsible for watercraft owned by an insured. However, there are limits for the coveragevalue for eachitem. Which of the following would not be covered under Coverage B ' Other Structures in a homeowners policy? On dry pavement, the standard deviation is 16 feet. theft, Additional coverages found in all homeowners forms include, Debris removal The preferred stockholders are also due to receive dividends in arrears for one year. What is relocation diffusion in human geography? covers damages that the insured becomes legally obligated to pay because of bodily injury or property damage caused by an occurrence to which coverage applies. B. loading bridges, Which Personal Articles Floater item is insured on a stated value basis? - does not cover a detached garage used for business, Under the special limits of liability section, the policy limits loss of theft of jewelry, watches, furs, and precious and semiprecious stones is $_____, The loss settlement provision of homeowners policies require that the insured carry a limit of insurance at least equal to, 80% of the full replacement cost of the dwelling. Jack knows that his homeowners policy pays for damage to the home on the basis of replacement value. Mrs. Oates doesn't want depreciation applied to any claims she might submit under her homeowners policy for loss or damage to her belongings. 70% of the replacement cost. If a policy has a replacement cost of $250,000, the maximum personal property coverage would be $187,500 75% of $250,000. The scheduled personal property endorsement provides coverage for specific items of property, such as a watch, that exceeds the internal limit on the policy. Medical payments coverage is not available for a residence employee D. Coverage F limits are subject to a deductible. Payment of the actual cash value or a proportional share of the loss, whichever is greater, Averagenumberofcommonsharesoutstanding, Fundamentals of Financial Management, Concise Edition, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, CHM 101 Exam #3 Chapter 11 Lecture Notes From, Chapter 6 - Addiction Across the Life Span. Personal property coverage is designed to help protect your belongings. B. D. jewelry, Inland Marine covers: C) No coverage is available. A. The dwelling on the residence premises Joaquin wants both property and liability insurance in one policy. $100 Under the HO-8 policy, the dwelling is valued on which basis? Personal belongings coverage includes items stored off-premisesthis means you are covered anywhere in the world. lawnmowers, Bodily injury to others reasonable repairs Damage to Property of Others coverage is provided up to a specified limit regardless of negligence - Damage to Property of Others pays up to $1,000 regardless of whether the insured is liable or not. After a fire damages a home, how much is the insured entitled to recover for buying materials to board up the windows under the homeowners policy? The personal injury endorsement can be added to a homeowners policy to protect the insured from injuries to others caused by, What damage is specifically excluded under the personal property coverage in the HO-3 special form, Additional coverages in the homeowners policy, Fire department service charge (Round to the nearest cent. Section II covers the neighbor's medical expenses and property damage losses. Marc and Nancy insure their home for $300,000 with a homeowners policy. An endorsement can settle personal property losses on a replacement cost basis. A HO-3 policy provides coverage on which basis? - all relatives of the named insured who live in the same household C. reservations A. birthday gifts The different classes of property that are eligible for coverage . The markings on the door did not permanently damage it but the door required cleaning and minor repair work. C. Medical payments will pay for a maximum of 1 year from the date of the accident After cooking dinner, he turns off the gas to the grill. The policy details the dollar amount for the standard coverage of various categories. What homeowners form would be most appropriate for their insurance needs? Bernard and Maureen own expensive jewelry, fine arts, and a rare coin collection. $1,500 for trailers not used with watercraft b. What Is an Insurance Endorsement? 7 Q An insured's home is covered by a DP-3. All of the following statements is correct about a Homeowners Policy, except: How much money would she have to earn each year before it was considered a business activity under a homeowners policy? for landlord . Which endorsement would have provided a better loss settlement? Policyholders receive a full copy of their policy, which usually runs at least 20 pages. D. Installation Floater, Tourist luggage is insured by which floater? A model airplane C. insect damage Water Damage (Excluded from all homeowners policies), Supplementary payments of the homeowners policy section 2 are paid, Which of the following losses would be 100% covered under Coverage C-personal property, A $1,250 fur coat that was stolen from the premises, Material misrepresentation by the insured requires & Substantial change in risk insured requires. D. Coverage D of a Homeowners Policy covers additional living expenses. A. commercial buildings B. domestic shipments of goods, An insured has how many days grace period to get newly purchased fine art scheduled? Broad perils coverage - These two Forms provide Broad Form Perils Coverage. The homeowners policy contains which of the following types of insurance coverage? The required reserve ratio is 10 percent. A rare and expensive gun was stolen from it. C. Payment under Damage to Property of Others is made regardless of negligence He purchases a homeowners policy, which is essentially a. Jack and Mary rent a cabin for two weeks. What limitations, if any, apply to cash and securities? They ask their agent if there is sufficient coverage under their standard homeowners policy for these high value items, and, if not, what is the best way to insure them. D. The Damage to Property of Others duplicates coverage that is included in Section I. Which of the following is considered personal property not covered by the homeowners policy? occupancy (no more than 4), A homeowners policy insures the personal property of, - the named insured It provides Commercial General Liability coverage for the day care operation These items are covered for losses caused by all the perils included in your policy such as fire, windstorm, theft and vandalism. If the shrubs in front of a house burn when the house catches fire, how much is the insured entitled to recover for the shrubs under his HO-3, 5% of the limit of Coverage A with a maximum of $500 for any 1 shrub, In the HO-4 and HO-6, the limit for trees, shrubs, or plants is __% of the coverage C limit or a maximum of $___ for one tree, plant, or shrub. The agent recommends either the HO 2 Broad Form or the HO 3 Special Form. What endorsement do you recommend? An insurance endorsement is a change to your insurance policy, such as an addition of coverage. Personal property is a class of property that can include any type of asset other than real estate. He is concerned that his homeowners policy will not provide enough coverage. By purchasing a scheduled personal. The cost to replace the property forms the basis of the scheduled personal property policy, and depreciation is not a consideration. She knows the furniture in her condo unit is covered as personal property under her homeowners policy but wants to know if the stored furniture is also covered and, if so, do any coverage restrictions exist. Of the following statements concerning Homeowners policies, which is correct? B. stamp and coin collections C. It covers injury to an employee, as well as attendees, arising out of day care operations B. gun collections A) damage to the neighbor's yard. D. $1,000, Ocean Marine covers: Your company has 120,000120,000120,000 shares of cumulative preferred stock that pays dividends at $30.25\$ 30.25$30.25 per share and 200,000200,000200,000 shares of common stock. Which of the following is not true concerning Section II of the Homeowners Policy? B. Customer Bailee Floater D. A speaker system installed in the insured's car. A. Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Take pictures of all items and receipts, and send them to your insurer. Scheduled personal property endorsement lists each insured item, a description of the item, its insured value and highlights the excluded perils. DOWNLOAD TO PDF A standard homeowners policy includes coverage for jewelry and other precious items such as watches and furs. Under what additional coverage did his homeowners insurance company reimburse him because he incurred expenses to board up the broken windows? However, he worries that loss to his personal property will be adjusted on an actual cash value basis. Definition and If You Need It, Fire Insurance: Definition, Elements, How It Works, and Example, Rider: Definition, How Riders Work, Types, Cost, and Example, Personal Property: Definition, Examples, and Role in Insurance. A. certificates Open perils coverage on the dwelling and broad form coverage on the personal property ---- The H0-3 provides open perils coverage on the dwelling, and Named Broad Form perils coverage on the personal property. Which of the following is false in regard to the Home Day Care endorsement? Accessed Oct. 15, 2021. Definition amd Coverage, Tiny House Insurance: How to Insure Your Tiny Home, What Is Umbrella Insurance Policy? The insured is less likely to have gaps in coverage by having property and liability insurance in one policy When an insured adds a scheduled personal property endorsement to a homeowners policy Coverage is provided on an open peril basis Which of the following additional coverages is only included in certain homeowners forms? \text{\$25.000} & \text{2.1\\% compounded monthly} & \text{64 mo} & \text{d.}\\ C. furs and jewelry Perform regular appraisalsat least annuallyof items insured under scheduled personal property endorsement to ensure you have adequate coverage in case of loss. What definition in the homeowners policy describes Beatrice's activities as a hairdresser? The insured is less likely to have gaps in coverage by having property and liability insurance in one policy, When an insured adds a scheduled personal property endorsement to a homeowners policy, Coverage is provided on an open peril basis. B. C. Inherent Vice Structures that are set apart from the dwelling by a clear space Advertisement \hline \text { Net income } & \$ 3,695 & \$ 3,789 & \$ 5,681 \\ The factors involved in location decisions include. \text{\$5.000} & \text{1.1\\% compounded quarterly} & \text{8 yr} & \text{c.}\\ how would a loss be adjusted under a homeowners policy with an insurance-to-value clause if a homeowner failed to carry coverage of at least 80% of the replacement cost of the home? What is Scheduled Personal Property? As an example, your policy may state that it will cover a maximum of $1,500 for losses of watches, precious stones, and other jewelry. C. Obligations of an insurer end when it pays damages equal to the policy limit for any one occurrence Cater pillar I nc. B. What Coverage C special limit of liability applies to the loss? C. is an unscheduled blanket policy. Since coverage is so broad, HO-3 is the most popular type of coverage for owner-occupied single-family homes. B. negative state affect Well not relieve the insure of its policy obligations The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Of the following statements concerning Homeowners policies, which is correct? }\\ C. The insured's tenant Which of the following would be covered under the Damage to Property of Others additional coverage of the Homeowners Policy? Scheduled personal property does provide broader coverage, but some exclusions do apply to this type of coverage. B. Members of the family under the age of 24 living at school away from the home What Does Homeowners Insurance Cover and Not Cover? In an HO 3 policy, the definition of 'motor vehicle' includes automobiles and all of the following EXCEPT: All of the shrubbery and plants on Tippi's front lawn were destroyed by a windstorm. Some companies may even cover your personal property if damage occurs when you are away from home, but there may be a limit on the dollar amount of coverage. Coverage C of a Homeowners Policy includes: An owned camera used by the insured while on vacation in another country --- Property not covered under Coverage C includes animals, aircraft, and vehicles registered for road use. $26,250 ---- The Coverage B total is $25,000, and the policy allows for an additional 5% for debris removal: $25,000 + 5% or $1,250 = $26,250. A. jewelry salesperson's sample case On what form is Albert's homeowners policy written? A. Coverage D of a Homeowners Policy includes loss of income from an incidental business ---Coverage D does not cover loss of income from an incidental business. Are Izzy's personal belongings, including his electronic equipment, insured under Natalie's homeowners policy? B. imports B. You also have up to $500 of coverage for unauthorized use of your credit cards. Mac's homeowners policy pays for the damage to the home and grill. Which of the following would be covered under the Damage to Property of Others additional coverage of the Homeowners Policy? On what basis was the loss settled? `Lisa lost one of her emerald earrings. Which of the following statements BEST describes the homeowners endorsements that are used to provide coverage for fungi, wet or dry rot, and bacteria? The Personal Property Replacement Cost Endorsement may be added to cover the contents on a replacement cost basis B. $0 civil commotion C. Contractor's Equipment Floater Your insurance companys underwriting team will review and get back to you with the status of your request. A Fine Art Floater: A. barratry Which statement is true concerning Section II of a Homeowners Policy? lightning Renters insurance can do more than help protect your property. The meeting will be held at GIA's headquarters at 200 Cedar St, Seattle, WA 98121. All of the following are true, except: B. an open perils (all-risk) basis. B. Insects They want to buy insurance to cover their personal property and protect them against liability claims from third parties. A. To earn some extra money, Mrs. Holden babysits her next door neighbor's children on a regular basis in her own home. Kevin came home from work to find that his house had been vandalized. Debris removal & \text { Year 3 } & \text { Year 2 } & \text { Year 1 } \\ A windstorm damages Tyrone and Belinda's garage and screened-in porch. The definition also includes a person who performs similar duties elsewhere that are not related to any business of the insured, such as a person hired to paint the insured's house, as so long as the insured doesn't own a business that paints houses. B) Special property limits. An employee whose duties are related to the maintenance of the residence premises, is defined as which of the following under Section II of the Homeowners Policy? All of the following would be included in the definition of 'insured location', except: A 5-family dwelling in which the insured lives in one of the units, including the structures and grounds ----Eligible residential dwellings are those containing one to four residential units and no more than 2 roomers or boarders per family. $$, What is covered under Coverage C - Personal Property, Personal property of the insured located anywhere in world, HO-2 policy provides an additional ____% of the amount coverage on the dwelling for loss of personal property, but only ___% of the personal property limit can be applied to property not located at the insured's primary residence, What homeowners endorsement is used to insure high-value items of personal property. Mr. Yerby purchased a homeowners policy to provide insurance for personal liability and the belongings in his apartment. Sandra, Lynn, and Carole inherited their family home from Mrs. North. Which of the following is not covered if the insured has broad peril coverage? An insurer has this option, because Bridget's homeowners policy has a repair or replace option, Derek insures his home on an HO 3 policy. Although Laura thought she had lost her emerald earring, the pair was stolen by a temporary worker who accidentally left one of the earrings behind. The endorsement provides replacement cost coverage on certain building items that are expressly excluded from the replacement cost coverage applicable to buildings: awnings, carpeting, household appliances, outdoor antennas, and outdoor equipment, in addition to replacement cost coverage on personal property. B. bridges owned by municipalities A Special personal property. For example, this endorsement wont cover property damage due to normal wear and tear, or loss caused by corrosion or rust. Loss settlement is based on the actual cash value up to the amount listed on the endorsement. D. Territorial Limits. A. Policyholders are not subject to a deductible on scheduled items. Policyholders wishing to guard these and other items should purchase additional coverage with a scheduled personal property policy. The stone could be replaced for $1,700. D) An insured, an agent, an insurer and a claim. A person who owns and lives on a farm -- Homeowners eligibility does not include farm property, but does include certain incidental business occupancies. Scheduled personal property. Which of the following Coverages is not found under Section I of the Homeowners Policy? A. fur coats D. Art on exhibition, Which floater covers a heating/air conditioning dealer putting a new furnace system in an office building? D. outboard motors and fishing tackle, Ocean Marine Insurance covers: D. 90. Animals, birds, fish The assigning of the value of the insuredproperty will vary by the insurance provider. Coverage for business property on the premises is limited to $2,500; away from the premises the limit is $1,500. is the worlds leading manufacturer of construction and mining equipment. What Coverage C special limit of liability applies to the loss? Scheduled personal property coverage is an insurance rider (also known as an endorsement) homeowners can add on to their existing policy to get more protection for their valuables. Someone broke into Mr. Johnson's house and stole $5,000 worth of firearms. C. homes What homeowners form was designed to provide coverage for older homes because their replacement values exceed their market values by a significant amount? Iacouva Company reported the following on the companys income statement for 2014 and 2013: a. \text{\$200} & \text{2\\% compounded annually} & \text{2 yr} & \text{a. C. buildings Will this damage be covered by the Coverages A, B, or C of her HO 3 policy? subrogate the claim to seek recovery from the manufacturer. Damage caused intentionally by the insured's 10-year-old son ----Intentional damage by a child under age 13 is covered. riot What coverage on her homeowners policy will pay for the necessary increase in living expenses she incurs because of her evacuation by a civil authority? Choose the false statement regarding the coverage of property under a Homeowners Policy. A standard homeowners policy typically includes coverage for: Homeowners policies typically pay a percentage of your dwelling coverage limit to repair or replace your clothes, furniture, and other personal property. A) 5% of the Coverage A limit. Accessed Oct. 15, 2021. D. vermin damage, A unique exclusion that is found only in the Fine Art Floater is: