Medical payments coverage is not available for a residence employee What is the difference in the weekly salaries of these two jobs? D. a townhouse that is owner-occupied, Loss arising out of acts the insured expects or intends is excluded under both Coverage ___ and Coverage ___, What is true regarding personal liability coverage, It is added by endorsement to the dwelling policy, but automatically included in the homeowners policy, Coverage E - Personal Liability provides coverage to the insured if, a claim is made or a sit is brought against the insured for damages because of bodily injury to property damage to others, Additional coverages for coverage A for trees, shrubs, plants, or lawns, loss caused by: C. An attached garage Scheduled personal property coverage is an endorsement you can add to your home insurance. Replacement cost The bankruptcy provision found in the personal part auto policy states that bankruptcy of the insured? A) Coverage C--Personal property. \text{\$25.000} & \text{2.1\\% compounded monthly} & \text{64 mo} & \text{d.}\\ One classified ad lists a job that pays 64.6K. The insured's tenant - Roomers or boarders are not considered insureds, and would need to purchase their own liability policies. "Personal Property Home Inventory." Accessed Oct. 15, 2021. Which statement is true concerning Section II of a Homeowners Policy? Scheduled personal property insurance covers you for greater risks than your homeowners' 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. | Allstate An additional insurance coverage, known as scheduled personal property, can help provide greater protection for some of your most valued belongings. Which of the following is false in regard to the Home Day Care endorsement? The markings on the door did not permanently damage it but the door required cleaning and minor repair work. They believed that they did not get enough for this property because the settlement was based on actual cash value. Personal belongings coverage includes items stored off-premisesthis means you are covered anywhere in the world. Well not relieve the insure of its policy obligations This year, $500,000\$ 500,000$500,000 is to be distributed. \text{\$400} & \text{1.5\\% compounded semlannualiy} & \text{4 yr} & \text{b. Coverage B: Other Structures 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. Most companies will require copies of either areceiptor anappraisalof the item before providing the coverage. A. replacement cost What homeowners form was designed to provide coverage for older homes because their replacement values exceed their market values by a significant amount? C. buildings Standard policies do not cover all types of property and set limitations on the value amount the insurance company will pay for specific losses. D. $1,000, Ocean Marine covers: True or False? The house was destroyed in a fire and the insurance company paid $300,000 for damage to the dwelling. Two years ago, the insured bought the home for $58K. C. a home under construction that the owner intends to occupy A scheduled personal property endorsement provides higher limits on expensive valuables and provides broader coverage than a standard policy. 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. Under Section II of the Homeowners Policy, an employee whose duties are related to the maintenance or use of the residence premises, is defined as: A residence employee - 'Residence employee' means any employee of an insured, whose duties are related to the maintenance or use of the residence premises. 10% ---As with the Dwelling Policy, Coverage B is provided at 10% of the Coverage A limit. $2,500 An insurer is not required to accept any property that an insured has Abandoned What are the main advantages to the insured if the homeowners policy is a package policy? A pipe bursts in Martha's home and water damages the ceiling, walls, and floors as well as furniture and clothing. C) The criminal, the crime, a police officer and a court of law. B. Dwellings under construction are covered for theft Personal property coverage is designed to help protect your belongings. It includes the Broad Form named perils on an actual cash value basis --- The HO-4 provides Broad Form named perils coverage on an actual cash value basis. Personal property is covered worldwide. Bodily injury sustained by an employee in the course of employment, damage arising out of boats rented to others, and damage arising out of watercraft being operated in a race are not covered. D. Installation Floater. Premiums for floaters depend on the types of items you've added, how much the items are worth and the area where you reside. C. Damage to property owned by the insured storage shed. Scheduled personal property is an additional insurance policy that can be added to your homeowners' insurance policy. At a .05 level of significance, do the sample data justify the conclusion that the variance in stopping distances on wet pavement is greater than the variance in stopping distances on dry pavement? The court orders that the animal be put to sleep. 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 C. The dwelling on the insured premises, plus any structures that are attached to the dwelling You can find out more about our use, change your default settings, and withdraw your consent at any time with effect for the future by visiting Cookies Settings, which can also be found in the footer of the site. The scheduled personal property endorsement provides open peril coverage C. Theft of silverware is covered up to $2,500 D. Money is covered up to $500 per occurrence Money is covered up to $500 per occurrence The limit on money is $200. Scheduled personal property endorsement If the insured owns a watch valued at $10,000, full coverage can be provided on a homeowners policy by purchasing the 80% The dwelling insured on HO-2, HO-3, or HO-5 forms is covered for replacement, provided that it is insured for at least what percentage of replacement cost on the date of loss? Moving property adds some risks you don't normally face, so it makes sense to protect your farm personal property if you're going to be moving it from place to place. & \$74,850.00\\ A complete list or inventory of your personal property and its total value will help you decide how much coverage is adequate and make filing claims easier. Which property would be settled for its actual cash value even if the Personal Property Replacement Cost Loss Settlement Endorsement is attached to the HO-3 policy? Property damage of another caused by the insured, The comprehensive HO-5 policy is a _____ perils contract on personal property, structures on the premises set apart from the dwelling by a clear space, What is not covered by coverage B - other structures, - does not cover other structures rented to others for other than a use as a private garage Scheduled personal property coverage could cover the item if the policyholderloses or damages the insured item. C. The insured's tenant 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. D. Coverage D of a Homeowners Policy covers additional living expenses. Which of the following pays all necessary medical expenses to others incurred within 3 years of an accident that causes bodily injury? A. inland marine Which of the following would not be eligible to purchase a Homeowners Policy? Another job he found has a weekly salary of $1,120. B) A duty to act, a branch of the duty, a resulting injury, a trail lawyer and a judge. Which of the following claims would be covered under the Personal Injury Endorsement attached to an HO-3 Policy? Commercial floaters cover: A. Borrowed property meets the definition of contents A) A duty to act, a failure to act, an injury to another person and an uninterrupted chain of events. A. Some companies limit the amount to 10 percent of the amount of insurance you have for your possessions. The replacement value of the home is $450,000. Coverage D of a Homeowners Policy includes loss of income from an incidental business Since coverage is so broad, HO-3 is the most popular type of coverage for owner-occupied single-family homes. Which floater covers works of art sold by an art gallery on a consignment basis? B) Special property limits. 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. 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. Property insurance provides financial reimbursement to the owner or renter of a structure and its contents in the event of damage or theft. Albert's homeowners policy provides open perils coverage on his home and named perils coverage on his personal property. Mr. and Mrs. Nguyen submitted a claim under their unendorsed homeowners policy for damage to their swimming pool. Policyholders wishing to guard these and other items should purchase additional coverage with a scheduled personal property policy. Definition amd Coverage, Tiny House Insurance: How to Insure Your Tiny Home, What Is Umbrella Insurance Policy? Examples of possessions that may have limited coverage from standard policies include fine artwork, antiques, jewels, furs, and gold coins or bars. Which statement is correct about these forms? C. Medical payments will pay for a maximum of 1 year from the date of the accident $1,500 for trailers not used with watercraft b. All of the following definitions are true of a Homeowners Policy, except: $1,500 for loss by theft -- Jewelry, watches, furs, precious and semiprecious stones are covered up to $1,500 for loss by theft. B. What is Scheduled Personal Property? B. Exhibition floater lawnmowers, Bodily injury to others Scheduled personal property is an insurance endorsement you can add to your regular homeowners policy. B. fine art B. B. A. cattle shipped to market A. ships' cargo 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. Liability arising from publication of material that violates another person's right of privacy - All are excluded under the unendorsed HO policy. A. broad What does the representative tell them? A. barratry Property such as electronics, firearms, business property, and watercraft may have limitations. Coverage for business property on the premises is limited to $2,500; away from the premises the limit is $1,500. The amount of Molly's outstanding mortgage was $100,000 at the time her house was destroyed in an explosion. It provides Commercial General Liability coverage for the day care operation How much did Molly's insurance company pay to the mortgagee? D. outboard motors and fishing tackle, Ocean Marine Insurance covers: \text{\$5.000} & \text{1.1\\% compounded quarterly} & \text{8 yr} & \text{c.}\\ They are concerned about the extent of homeowners coverage for loss to the trees, shrubs, plants, or lawns on the premises. C. Coverage is not provided to a garage rented for private garage purposes In some situations, property owned by others may also be covered under a standard policy. A) Special limits of liability. C. fine art Per person - Medical payments coverage for all types of policies pays on a 'per person' limit. The HO 2 insures all property on a named perils basis while the HO 3 insures real property on an open perils basis and personal property on a named perils basis. Sandy and Stewart had a fire loss, and the insurance company reimbursed them for their damaged personal property. non-owned vehicles What endorsement changes Coverage C- personal property in the HO-3 from a named peril to open peril? A. A person who owns and lives on a farm -- Homeowners eligibility does not include farm property, but does include certain incidental business occupancies. B. salespersons' samples, Marine Transportation Insurance covers: A. The cause is determined to be a defect in the grill. A scheduled personal property endorsement provides adequate coverage for your valuables, but at the expense of a higher insurance premium. If it suffered extensive damage and had to be replaced, the replacement value might substantially exceed its market value. D) damage to the neighbor's clothing. "Scheduled Personal Articles Insurance Coverage." 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. The dwelling on the residence premises Which of the following would not be included in the meaning of 'insured' in a homeowners policy? Bart keeps a dog that is known in the neighborhood to be vicious. People typically schedule their property when its value exceeds the personal property limits in a standard homeowners policy. Physicians and Surgeons Floater Invasion of privacy C. False Arrest D. A third party breaks a leg when the insured knocks him down . Charles completed the Good with Words: Writing and Editing Course through the University of Michigan. Liability for loss to use of another's property C. insect damage D . }\\ All of the following statements is correct about a Homeowners Policy, except: Jack and Jill are vacationing at a golf resort when a thief enters their room and steals a laptop computer, golf clubs, cash, and clothing. 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. 50% --- The basic amount of Coverage C insurance is 50% of the Coverage A Limit. C. Contractor's Equipment Floater Question 54 of 63 Theft from a dwelling under construction prior to its occupancy American Family Insurance. Losses to dwellings and other structures are paid at replacement cost. Victoria is considering purchasing a condominium unit and asks her insurance agent what type of homeowners policy would be best for her. B. 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. Scheduled personal property works in two ways: increasing policy limits to cover more expensive items and protecting these items from a more significant number of . Installment Sales Floater Under what section of her homeowners policy is the pool insured, if at all? D) Personal property replacement cost endorsement. Another benefit of a scheduled personal property endorsement is the extra coverage you would not have under standard personal property coverage. D. Replacement cost, A person who owns jewelry worth over $50,000 should get a: Learn how coverage works. . The Watercraft Liability endorsement provides which coverage? The land on which the dwelling is located An insured has how many days grace period to get most Floater items scheduled? Unscheduled personal property refers to items automatically covered by homeowners insurance without the need for an appraisal or receipt. A Special personal property. D. 90. Which statement is false? Water damage Throwing cargo into the sea to save a sinking ship is: 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. Occurrence -- An accident, including exposure to conditions that result during the policy period in bodily injury or property damage The Tuttles own a late-19th century Victorian home. D. jewelry, Inland Marine covers: A. a duplex that is owner-occupied D. Coverage D of a Homeowners Policy covers additional living expenses. C. Inherent Vice A. Renters insurance can do more than help protect your property. B. Scheduled personal property does provide broader coverage, but some exclusions do apply to this type of coverage. Other named peril losses are covered up to the Coverage C limit. Molly also has a $2,500 scheduled personal property endorsement covering her jewelry. Bridget reported the theft of her Rolex watch to her insurance company. Also known as. 1 If her ring is stolen, the insurer will pay (given a $250 deductible)? The Personal Injury endorsement adds coverage for non-physical injuries to others, including invasion of privacy. The dwelling must be the principal residence of the insured -- The underlying concept of the Homeowners Policy is that owner-occupied property has, in most cases, better care and maintenance than tenant-occupied property and is therefore eligible for package insurance and discounted rates. A. breakage 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. The stone could be replaced for $1,700. B. C. Contractor's Equipment Floater For example, this endorsement wont cover property damage due to normal wear and tear, or loss caused by corrosion or rust. The dwelling and other structures (Coverages A and B) are written on an open perils basis -- The HO-3 (Special Form) provides the broadest coverage available on structures: open perils (or all-risk) coverage. How was this claim paid? If a policy has a replacement cost of $250,000, the maximum personal property coverage would be $187,500 75% of $250,000. C) Scheduled personal property endorsement. 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. 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. Personal Property Replacement Cost Loss Settlement. C. Installation Floater Notify adjacent neighbors of the damage and possible risk to them, Samuel keeps a gun collection at home. 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? C) Scheduled personal property endorsement. A. covers public art collections. What Does Homeowners Insurance Cover and Not Cover? Which of the following is not an option available to Laura? The property section of the homeowners policy excludes coverage for certain types of property. 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. Fair market value When two earthquakes occur within a 24-hour period, how does her policy consider the two earthquakes? Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. A. The preferred stockholders are also due to receive dividends in arrears for one year. Insurers calculate actual cash value by taking the replacement cost and accounting for depreciation of the item. C. Obligations of an insurer end when it pays damages equal to the policy limit for any one occurrence 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. Other structures, which include items such as sheds, fences, and the mailbox. 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. The cost to replace the property forms the basis of the scheduled personal property policy, and depreciation is not a consideration. A neighbor is injured while helping the insured install a carpet --- First Aid Expenses Coverage applies to first aid to others caused by Bodily Injury covered under the policy, but does not pay for first aid to an insured. D. Art on exhibition, Which floater covers a heating/air conditioning dealer putting a new furnace system in an office building? Todd has a large gun collection and his wife, Tina, has several items of valuable jewelry. Which of the following is true regarding an unendorsed HO-4 (tenants form)? Members of the family under the age of 24 living at school away from the home Broad perils coverage - These two Forms provide Broad Form Perils Coverage. Personal Injury Endorsement - The Personal Injury Endorsement provides coverage for injuries to others that are not of a physical nature. However, there are limits for the coveragevalue for eachitem. Which of the following additional coverages is only included in certain homeowners forms? For more jewelry. D) Whatever it will reasonably cost. Cookies collect information about your preferences and your devices and are used to make the site work as you expect it to, to understand how you interact with the site, and to show advertisements that are targeted to your interests. Texas Department of Insurance. A. Dwellings under construction are covered for theft Coverage is provided to property of boarders not related to the insured Under an HO-3 policy, what is the coinsurance requirement? It includes various perils outside your typical dwelling coverage. Scheduled personal propertyalso called an endorsement, floater or rideris an optional coverage to your homeowners insurance policy (or a renters or condo policy) that provides more. B. a mobile home that is owner-occupied An endorsement can settle personal property losses on a replacement cost basis. claim expenses \hline \text { Net income } & \$ 3,695 & \$ 3,789 & \$ 5,681 \\ C) It is covered for up to 10% of the coverage C limit. By purchasing a scheduled personal. Its only after a loss that many people realize they should have purchased replacement cost coverage or increased their coverage amounts. The HO-5 personal property coverages are insured on which basis? On what form is his policy written? B. Michael and Tricia have spent much time and money to landscape their property. Policyholders are not subject to a deductible on scheduled items. A. a warehouse 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. (Round to the nearest cent. Debris removal C. exports All of the following are eligible for coverage under a homeowners policy except, Are eligible for homeowners policy if the mobile home endorsement is attached. Each of these payouts would be subject to a deductible. It includes the Broad Form named perils on an actual cash value basis -- The HO-4 provides Broad Form named perils coverage on an actual cash value basis. Installment Sales Floater Her agent recommends a. He purchases a homeowners policy, which is essentially a. Jack and Mary rent a cabin for two weeks. no, because damage to trees, shrubs, plants, or lawns is not covered if caused by a windstorm. What is it? This basic homeowners insurance policy only covers losses caused by a peril named in the policy. As their agent, which homeowners coverage form should you offer them? What is the amount of the dividend s in arrears? Coverage applies because the limitation on property usually located at other residences does not apply to temporary locations. Any residents of the same household are insured as long as, Permitted Incidental Occupancies Endorsement. Each insurance company will value your personal property differently. These duties include household and domestic services, such as those of a gardener or nanny. On what basis was the loss settled? How can government use taxes to reallocate the use of resources in the economy? A research hypothesis is that the variance of stopping distances of automobiles on wet pavement is substantially greater than the variance of stopping distances of automobiles ondry pavement. Which of the following is considered personal property not covered by the homeowners policy? 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 Mac's homeowners policy pays for the damage to the home and grill. Liability coverages are set forth in Section II of the Policy. Landlord's Furnishings (Forms HO 00 02, HO 00 03, and HO 00 05 Only) This endorsement was introduced in 2000. Your clothing, appliances, furniture, and jewelry are all treated as personal property. The Tuttles are willing to compromise on insurance coverage to reduce their expenses in maintaining the home. The policy details the dollar amount for the standard coverage of various categories. Coverage A: Dwelling DOWNLOAD TO PDF A standard homeowners policy includes coverage for jewelry and other precious items such as watches and furs. A. commercial buildings C. golf clubs Which of the following endorsements to the Homeowners Policy adds coverage for injury resulting from libel, slander, false arrest, defamation, invasion of privacy and other such offenses that could result in a personal liability suit? Personal Articles Floater A Personal Article Floater can cover: 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. Coverage D of a Homeowners Policy includes loss of income from an incidental business Some possessions covered by a scheduled personal property endorsement include jewelry, coin collections, postage stamps, furs, antiques, guns, fine arts, silverware, and other items whose value exceeds what your regular homeowners policy covers. C. $250 Samuel has the 2011 edition of the ISO 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. He keeps a considerable amount of cash and other valuables on him and around his home. - all relatives of the named insured who live in the same household This modifies the basis of loss settlement from ACV to replacement value. Losses to the dwelling are paid replacement cost and losses to personal property are paid at actual cash value. Because Coverage C of his homeowners policy contains a sublimit for loss of firearms and their equipment by theft, he will recover up to. B. Floater insurance is a type of insurance policy that covers personal property that is easily movable and provides additional coverage over what normal insurance policies do not. lightning C. Home schooling is covered under a Homeowners Policy A. You can add this endorsement to either a schedule or blanket farm personal property insurance plan to give you additional coverage from $5,000 to $100,000. C. Fine art floater Under what additional coverage did his homeowners insurance company reimburse him because he incurred expenses to board up the broken windows? property removed, Section II provides coverage to third parties including, first aid provided by the insure C. positive state affect Personal Effects, Inland Marine policy losses are usually calculated with which method of valuation: In order to be covered by a scheduled personal property endorsement, the policyholder's personal property must be listed in the schedule, or list, for coverage. What limitations, if any, apply to cash and securities? - 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. B. Total liability coverage resulting from any one occurrence may not exceed the Coverage E limit that is stated in the policy 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. Note: We don't currently offer the ability to schedule property, but stay tuned! With respect to Jack and Mary's homeowners policy, the rental property would be considered which of the following?
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