The most common perils covered by an HO-1 policy include: Fire or lightning Smoke Windstorms or hail Explosion Aircraft Vehicles Vandalism Theft Few homeowners have this type of policy. Standard policies do not cover all types of property and set limitations on the value amount the insurance company will pay for specific losses. As their agent, which homeowners coverage form should you offer them? The coverage for Damage to Property of Others excludes property that is covered in Section I personal property of roomers or boarders is excluded under the homeowners policy. B. \end{array} Which of the following is not an Additional Coverage on the homeowners policy? 13 Q Losses to the dwelling are paid replacement cost and losses to personal property are paid at actual cash value. Losses to dwellings and other structures are paid at replacement cost. A. inland marine Texas Department of Insurance. Damage caused intentionally by the insured's 10-year-old son ----Intentional damage by a child under age 13 is covered. D. leased buildings, Each of the following is a Personal Floater EXCEPT: The extent to which a person feels enthusiastic, active and alert is known as ________. 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. Which of the following would be covered under the Damage to Property of Others additional coverage of the Homeowners Policy? A. Chloe moved from a spacious home to a smaller condo unit and stored some of her furniture in an off-premises storage unit. Bernard and Maureen own expensive jewelry, fine arts, and a rare coin collection. subrogate the claim to seek recovery from the manufacturer. Bicycle floater Round to the nearest dollar. A standard homeowners insurance policy covers personal items up to a specific dollar limit, beyond which an insurance company wont compensate you in the event of a loss. Unscheduled personal property refers to items automatically covered by homeowners insurance without the need for an appraisal or receipt. 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. The HO-5 personal property coverages are insured on which basis? Vandalism and malicious mischief losses are excluded under the Homeowners Policy: When the property has been vacant for 60 consecutive days - Since vacant property possesses a higher susceptibility to being vandalized, the policy excludes vandalism coverage when insured homes are vacant for 60 days or longer. Which of the following is considered personal property not covered by the homeowners policy? Functional Replacement Value - Functional replacement cost is the cost to replace the damaged property with property that performs the same function, but is not like-kind or quality. Section II is the same in all Homeowners Forms - Since the liability exposures of individuals and families have little to do with their mode of residence, Section II is the same in all Homeowners Policy forms. 4.3.3 Workers Compensation Premium Computation, PI: 3.5.1 & 3.5.2 Farm Insurance Coverage / L, PI: 3.6.1 National Flood Insurance Program (N, PI: 3.7.1 Regulation of Property Insurance, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus. \hline \text { Net income } & \$ 3,695 & \$ 3,789 & \$ 5,681 \\ Under an HO-2 policy with a coverage limit of $50,000 on the dwelling, what is the amount of personal property coverage that would be available? is the worlds leading manufacturer of construction and mining equipment. However, there are limits for the coveragevalue for eachitem. 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. Personal Effects, Inland Marine policy losses are usually calculated with which method of valuation: D. Lumber in the insured's yard to be used to build a deck off the kitchen. unendorsed HO policy, there's not enough premium to handle the multitude of events that can cause a substantial loss of value to collectible stamps and coins. Which of the following would not be eligible to purchase a Homeowners Policy? D. Camera floater, Which floater may be used to cover office equipment and furniture? A Special personal property. Dave has a homeowners insurance policy. Relatives of the named insured, meaning they are related by blood, marriage, or adoption Scheduled personal property is an endorsement you add to your homeowners insurance to provide extra coverage for your valuables. Other named peril losses are covered up to the Coverage C limit. Throwing cargo into the sea to save a sinking ship is: Structures that are set apart from the dwelling by a clear space True or False? Home-Based Business Insurance: What It Is, Costs, and Companies, Home Daycare Insurance: What It Is, Costs, and Companies. If a policy has a replacement cost of $250,000, the maximum personal property coverage would be $187,500 75% of $250,000. C. Contractor's Equipment Floater Most Personal Articles Floaters are written on: Describe the procedure and comment on its fairness. While the HO 04 61-Scheduled Personal Property Endorsement provides much more coverage than an. Coverage A: Dwelling An insured has a personal property replacement cost endorsement under her homeowners policy. D. floaters, Each of the following is covered by Inland Marine EXCEPT: Occurrence -- An accident, including exposure to conditions that result during the policy period in bodily injury or property damage A. What definition in the homeowners policy describes Beatrice's activities as a hairdresser? Renters Insurance Coverage and Policies | Allstate Renters insurance can do more than help protect your property. B) Special property limits. C. It covers injury to an employee, as well as attendees, arising out of day care operations The Section I deductible does not apply to property covered under the Scheduled Personal Property Endorsement - The Scheduled Personal Property Endorsement has no deductible. Which of the following additional coverages is only included in certain homeowners forms? An insurer may not be sued unless the insured has fully complied with the terms of the homeowners policy and the suit is brought within how many years of the loss date? Note: We don't currently offer the ability to schedule property, but stay tuned! If the cost to repair or replace is less than five percent of the dwelling limit and less than $2,500, the holdback requirement does not apply. D. Coverage D of a Homeowners Policy covers additional living expenses. D. 90. B. salespersons' samples, Marine Transportation Insurance covers: Under an HO-3 policy, what is the coinsurance requirement? Laura's insurer paid $10,000 claim to reproduce the missing earring. In the research study, 16 automobiles traveling at the same speeds are tested for stopping distances on wet pavement and then tested for stopping distances on dry pavement. With actual cash value, loss is depreciated based on age and condition. Which statement is correct? - all relatives of the named insured who live in the same household B. mariners Personal Articles A. But here are the steps you can take to get the right amount of scheduled personal property insurance: You may need to take a picture of your item on top of the appraisal or receipt if youre insuring jewelry. B. Dwellings under construction are covered for theft Having paid Mac's claim, the insurer is likely to do what with respect to the grill's manufacturer? The Scheduled Personal Property Endorsement, HO 04 61, does not define fine arts, leaving the category open for anything that does not fall into the jewelry, furs, cameras, musical. How big are the banks excess reserves? Scheduled personal property goes beyondthe coverage offered instandard homeowners' policies. Per person - Medical payments coverage for all types of policies pays on a 'per person' limit. C) Coverage C--Personal property increased limits. What endorsement do you recommend? B. 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. 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. B. bridges owned by municipalities George just returned from Europe with a beautiful Swiss watch valued at $10,000. 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. He purchases a homeowners policy, which is essentially a. Jack and Mary rent a cabin for two weeks. 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. You may need to purchase a scheduled personal property endorsement if the value of your personal items exceeds the limit on your personal property insurance policy. Coverage for a day care employee - Injury to any employee arising out of the day care business is not covered. Fair market value Which of the following would not be covered under Coverage B ' Other Structures in a homeowners policy? What is the amount of the dividend s in arrears? D. outboard motors and fishing tackle, Ocean Marine Insurance covers: Scheduled personal property coverage could cover the item if the policyholderloses or damages the insured item. Personal property on most policies include clothing, shoes, furniture,appliances, and other items. The following are all additional coverages under a Homeowners Policy, except: Governmental Action - Governmental action is an exclusion; not an additional coverage. D. vermin damage, A unique exclusion that is found only in the Fine Art Floater is: A. domestic transportation shipments Coverage for business property on the premises is limited to $2,500; away from the premises the limit is $1,500. Coverage B: Other Structures What definition in his homeowners policy describes his home? Select the person who is not considered an insured under an HO-3 policy? Natalie offers to rent a room in her home to a local college student. D. Damage to property owned by the insured's tenant. C) Scheduled personal property endorsement. Some companies limit the amount to 10 percent of the amount of insurance you have for your possessions. Someone broke into Mr. Johnson's house and stole $5,000 worth of firearms. Damage caused intentionally by the insured's 10-year-old son C. 60 Physicians and Surgeons Floater The art world is comparing the (a) seven-year-old, (b) seven year old child prodigy to Picasso. Since coverage is so broad, HO-3 is the most popular type of coverage for owner-occupied single-family homes. 30 D. Replacement cost, A person who owns jewelry worth over $50,000 should get a: Sandra, Lynn, and Carole inherited their family home from Mrs. North. Mr. Conrad lives on the second floor of a duplex he bought. Definition amd Coverage, Tiny House Insurance: How to Insure Your Tiny Home, What Is Umbrella Insurance Policy? Theft from a dwelling under construction prior to its occupancy An insurance rider expands your coverage or protects against risks that are not covered by a standard homeowners insurance policy. Mrs. Delaney hired a contractor to build a deck on the back of her house. $2,500 for theft of firearms c. $500 for business personal property on the insured premises d. $1,500 for securities, accounts, deeds, and evidences of debt c. $500 for business property A model airplane - A model or hobby aircraft is covered unless it is designed to carry people or cargo. Scheduled personal property is a supplemental insurance policy that extendscoveragebeyond the standard protection provided in a homeowners'insurance policy. Coverage D of a Homeowners Policy includes loss of income from an incidental business Property insurance provides financial reimbursement to the owner or renter of a structure and its contents in the event of damage or theft. aircraft He also holds a bachelor's degree in electrical engineering from the Multimedia University of Kenya. Chapter 13 - Businessowners Coverage Form, Chapter 12 - Miscellaneous Commercial Policies, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese. Water damage Because the medical payments limit applies per person, the insurer will pay actual expenses up to $5,000 per person: $5,000 + $4,000 + $3,000 + $2,000 + $1,000 = $15,000. The cause is determined to be a defect in the grill. Accessed Oct. 15, 2021. B. Unscheduled Personal Property Coverage Covered up to 10% if kept at a location other than the main residence True or False The peril of theft is automatically included in all homeowners policies, whether theft occurs on the insured's premises or not True The permitted incidental occupancy endorsement The insured's tenant - Roomers or boarders are not considered insureds, and would need to purchase their own liability policies. The peril of theft is automatically included in all homeowners policies, whether theft occurs on the insured's premises or not, The permitted incidental occupancy endorsement, Deletes exclusions in the policy pertaining to a business conducted on the resident premises B. stamp and coin collections Find (a) the maturity value and (b) the present value of the note assuming 5%5 \%5% per year compounded semiannually. Another job he found has a weekly salary of $1,120. D. A speaker system installed in the insured's car. C. stated value detached shed from which a tool repair business is operated. The insured's tenant -- Tenants must acquire their own insurance to cover their personal property and liability. occupancy (no more than 4), A homeowners policy insures the personal property of, - the named insured Which floater covers works of art sold by an art gallery on a consignment basis? Theft of silverware is covered up to $2,500 C. Money is covered up to $500 per occurrence D. The Scheduled Personal Property Endorsement provides open perils coverage Advertisement \text{\$200} & \text{2\\% compounded annually} & \text{2 yr} & \text{a. It may provide protection in the event of a covered loss, such as theft or fire. He asks his insurance agent if the family cemetery plot and the small greenhouse he rents to a friend who grows and sells orchids are also covered under the policy. Antiques - Property that cannot be replaced, such as souvenirs, antiques, and paintings are not eligible for the replacement cost coverage. The coverage will pay for any increase in living expenses required to maintain the insured's normal standard of living - Coverage D is intended to pay only the increase in the insured's normal living expenses occasioned by the loss. B. Are Izzy's personal belongings, including his electronic equipment, insured under Natalie's homeowners policy? They would not recover their loss in full because they were not insured to value. In some situations, property owned by others may also be covered under a standard policy. HO-6 ----- The HO-6 Form is designed for the owner-occupant of a condominium unit. Marilyn and Dan live in an apartment. $74,850.0035,798.00. In addition, Birinyi Associates identified Caterpillar as one of the top five companies to repurchase their own shares in a recent year.12 Three recent years of earnings and average common shares outstanding data for Caterpillar are as follows (in millions): Year3Year2Year1Netincome$3,695$3,789$5,681Averagenumberofcommonsharesoutstanding617.2645.2652.6\begin{array}{lrrr} 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. How much money would she have to earn each year before it was considered a business activity under a homeowners policy? After ttt months on the job, a postal clerk can sort Q(t)=700400e0.5tQ(t)=700-400 e^{-0.5 t}Q(t)=700400e0.5t letters per hour. The Home Day Care endorsement does not provide which of the following? 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. A. What does the representative tell them? A. She purchased the necessary lumber and it's piled in her back yard. Coverage F: Medical Expenses, Example that is covered under Coverage A: dwelling, Example that is covered under Coverage D: loss of use, The loss of income from the boarder in a house having to be moved, Example that is covered under additional coverages. Is personal property that is usually located in a secondary residence covered under Coverage C? Under the HO-8 policy, the dwelling is valued on which basis? What limitations, if any, apply to cash and securities? The land on which the dwelling is located --- While vacant land is included in the definition of 'insured location,' for the purposes of liability coverage, no property coverage is provided for land under the Homeowners policy. Her jeweler will reproduce the lost earring for $10,000. The replacement value of the home is $450,000. Collapse (Is included in HO-2, 3, 4, 5, and 6, Which of the following coverages applies to personal property owned or used by an insured and is included in all homeowners policies. C. 100% of the actual cash value. Caterpillar had no preferred stock outstanding. This basic homeowners insurance policy only covers losses caused by a peril named in the policy. . Which of the following pays all necessary medical expenses to others incurred within 3 years of an accident that causes bodily injury? Bridget reported the theft of her Rolex watch to her insurance company. For a homeowners policy, which one of the following statements about insuring personal property normally kept at a residence other than the residence premises is CORRECT? A Personal Article Floater can cover: A. ACV Jones act Which method of Lawson valuation is contrary to the basic concept of indemnity? A windstorm damages Tyrone and Belinda's garage and screened-in porch. Which of the following would not be an insured under Section II of the Homeowners Policy? Which of the following is true concerning the Home Day Care Coverage Endorsement to the Homeowners Policy? The homeowners policy contains which of the following types of insurance coverage? What is Scheduled Personal Property? All of the following statements is correct about a Homeowners Policy, except: What are the main advantages to the insured if the homeowners policy is a package policy? no, because damage to trees, shrubs, plants, or lawns is not covered if caused by a windstorm. All of the following are true of a Homeowners Policy, except: A. Dwellings under construction are eligible B. Animals, birds, fish Scheduled personal property is an endorsement you add to your homeowners insurance to provide extra coverage for your valuables. All of the following are benefits provided by the Loss of Use coverage (Coverage D) in a homeowners policy EXCEPT: Janice and Bill ask their agent which homeowners insurance form she would recommend to meet their needs. A. Costs the insured was already paying before incurring the loss are not covered. C. Obligations of an insurer end when it pays damages equal to the policy limit for any one occurrence With scheduled personal property, you also. Liability Coverages are set forth in Section II of the Policy. All of the following are true, except: For instance, if your policys dollar limit is $4,000 for all your valuables but their total value exceeds that amount, youll need to purchase a scheduled personal property endorsement to have your valuables fully covered. Each insurance company will value your personal property differently. }\\ C. Payment under Damage to Property of Others is made regardless of negligence Which statement is true concerning Coverage D of the Homeowners Policy? D. Coverage D of a Homeowners Policy covers additional living expenses. 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. B) A duty to act, a branch of the duty, a resulting injury, a trail lawyer and a judge. Open perils -- The HO-5 is the broadest policy providing open perils coverage on Coverages A, B, and C. Which person is not a covered resident under the Homeowners Policy? Under what additional coverage did his homeowners insurance company reimburse him because he incurred expenses to board up the broken windows? Determine the number of times interest charges are earned for 2014 and 2013. The pair of earrings cost $15,000 and was recently valued at $20,000. A. Although she is willing to accept the insurer's settlement offer for the ceiling, walls, and hardwood floors, she objects to the insurer taking into account depreciation of the furniture and clothing. A show dog Damage to these items is not covered if caused by. A note for $3500\$ 3500$3500 was made at 8%8 \%8% per year compounded annually for 333 years. After cooking dinner, he turns off the gas to the grill. & \text { Year 3 } & \text { Year 2 } & \text { Year 1 } \\ Personal Articles Floater, Inland Marine policies are called? What is relocation diffusion in human geography? The election process for the Academy Awards (for films) involves several stages and several different voting methods. Which of the following is true regarding Section II of the Homeowners Policy? One classified ad lists a job that pays 64.6K. A neighbor visits them and upon leaving, trips over some fishing equipment that Jack left in the yard. By purchasing a scheduled personal. How was this claim paid? Take pictures of all items and receipts, and send them to your insurer. Which statement is true concerning Section II of a Homeowners Policy? D. Breakage, Fundamentals of Financial Management, Concise Edition, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Fundamental Financial Accounting Concepts, Alvin A Arens, Mark A Beasley, Randal J Elder. no, because there are more than 4 units in the dwelling. Choose the false statement regarding the coverage of property under a Homeowners Policy. C. Residence employee -- An employee of an insured whose duties are related to the maintenance or use of the residence premises In what type of home does Mrs. Zabinski live? Coverage applies because the limitation on property usually located at other residences does not apply to temporary locations. The required reserve ratio is 10 percent. Which of the following is false in regard to the Home Day Care endorsement? vandalism and malicious mischief The assigning of the value of the insuredproperty will vary by the insurance provider. - anyone requested by the named insured, provides homeowners liability coverage for personal damage or injury caused while conducting business outside of the building. the maximum amount of coverage that can be written on any single dwelling is $25,000. The Personal Injury endorsement adds coverage for non-physical injuries to others, including invasion of privacy. Inherent vice non-owned vehicles An unscheduled property floater is an addition to an existing property insurance policy to cover items that have not been individually itemized or valued. A. cattle shipped to market Including debris removal, what is the maximum an HO-3 policy with a Coverage A amount of $250,000 will pay If a detached garage burns down? Protection extends to additional types of loss above that covered by the homeowner's policy. Charles Munyi has over eight years of experience as a personal finance writer. "Personal Property Home Inventory." D. Any person legally responsible for watercraft owned by an insured. A scheduled personal property endorsement is an endorsement that allows certain property which might not be covered by a standard homeowners' insurance policy to be covered. The right of privacy was not acknowledged as a separate right until the 1960s. 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. Physicians and Surgeons Floater B. D. Art on exhibition, Which floater covers a heating/air conditioning dealer putting a new furnace system in an office building? Mac bought a new gas grill from a local department store. Credit cards, All of the following properties can be insured under an unendorsed homeowners policy except Which of the following is not true concerning Section II of the Homeowners Policy? The dwelling on the residence premises A Homeowners Policy will not cover theft of a boat away from premises Under a Homeowners policy, Coverage B is what percentage of Coverage A? Learn about several types of riders that may be available on a home insurance policy. B. covers private art works. Personal Effects Floater, The standard deductible under a Scheduled Personal Property Endorsement is: A. covers inherent vice. An insured has how many days grace period to get most Floater items scheduled? A. Molly also has a $2,500 scheduled personal property endorsement covering her jewelry. Mac's homeowners policy pays for the damage to the home and grill. On a standard homeowners policy, coverage divides into categories including. B. Scheduled personal property insurance covers you for greater risks than your homeowners' insurance policy. Unscheduled personal property refers to items that are covered by personal property coverage but have not been specifically itemized; these items are subject to the standard coverage limits. Coverage may be increased beyond the $2,500 additional coverage (10.) These items are covered for losses caused by all the perils included in your policy such as fire, windstorm, theft and vandalism. B. Of the following statements concerning Homeowners policies, which is correct? `Lisa lost one of her emerald earrings. What homeowners form would be most appropriate for their insurance needs? If an expensive painting and an antique chair are stolen from the insured's home, what will the insured receive on the claim under that endorsement? Which of the following is true regarding the HO-3 (Special Form)? C. Borrowed property meets the definition of contents Learn about what is typically covered in a renters policy and additional coverages you may want to consider.