A. Mrs. Delaney hired a contractor to build a deck on the back of her house. B. Property insurance provides financial reimbursement to the owner or renter of a structure and its contents in the event of damage or theft. Which statement is true concerning Section II of a Homeowners Policy? A. Which of the following homeowners policies covers tenants or renters? 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. Find (a) the maturity value and (b) the present value of the note assuming 5%5 \%5% per year compounded semiannually. Which of the following would not be included in the meaning of 'insured' in a homeowners policy? Someone broke into Mr. Johnson's house and stole $5,000 worth of firearms. Which of the following claims would be covered by the First Aid Expenses under the Homeowners Policy? B. golfer's equipment, Which Commercial Floater would be used to cover paving machinery? 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. Personal property is covered worldwide. Under Coverage B -- Other Structures of the homeowners policy, which of the following structures are covered? B. The insurer can do this because losses to personal property are settled on what basis? One day the dog attacks a neighbor while she is working in her own yard. Damage arising out of the insured's business pursuits explosion The required reserve ratio is 10 percent. 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. keep the $10,000 loss payment and the recovered property. reasonable repairs C. a leased warehouse C. Inherent Vice D. Coverage is not provided to a garage rented for private garage purposes. However, there are limits for the coveragevalue for eachitem. B. Select the person who is not considered an insured under an HO-3 policy? Damage to these items is not covered if caused by. Both the cemetery plot and greenhouse are located at the residence premises. What is the amount of the dividend s in arrears? Borrowed property meets the definition of contents It offers "open perils" protection for your house and detached structures like garages, sheds, fences. The dollar amount might not adequately cover the cost of replacing your valuables, so youll need scheduled personal property coverage. C. positive state affect Personal Effects, Inland Marine policy losses are usually calculated with which method of valuation: A. commercial buildings Under your standard coverage, expensive jewelry, firearms, and furs may not be sufficiently covered scheduled personal property coverage can insure these items up to their full value. }\\ A. A. domestic transportation shipments Notify adjacent neighbors of the damage and possible risk to them, Samuel keeps a gun collection at home. 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. D. either basic or broad, Which Floater is written on a valued basis? Which of the following is false in regard to the Home Day Care endorsement? Bart's homeowners policy will cover all of the following expenses related to this incident EXCEPT: 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. Learn more about scheduled personal property, how it works, the pros and cons, and how to get coverage. All of the following are true, except: 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. All of the following are true of a Homeowners Policy, except: A. Dwellings under construction are eligible B. Losses to the dwelling are paid replacement cost and losses to personal property are paid at actual cash value. Open perils coverage is available by Endorsement for scheduled items at an additional premium. One classified ad lists a job that pays 64.6K. 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? On what basis was the loss settled? The Personal Injury endorsement adds coverage for non-physical injuries to others, including invasion of privacy. George just returned from Europe with a beautiful Swiss watch valued at $10,000. With respect to Jack and Mary's homeowners policy, the rental property would be considered which of the following? 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. Theft from a dwelling under construction prior to its occupancy Installment Sales Floater Which statement is correct about these forms? D. vermin damage, A unique exclusion that is found only in the Fine Art Floater is: A. ACV B. B. A. B. Insects 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. His insurance agent suggests that he add which endorsement to adequately cover his watch? Youll need to provide copies of either appraisals or receipts of your items before an insurer can provide scheduled personal property coverage. Liability for loss to use of another's property Which of the following would not be an insured under Section II of the Homeowners Policy? & \text { Year 3 } & \text { Year 2 } & \text { Year 1 } \\ Installment Sales Floater The replacement value of the home is $450,000. - 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. She wonders what the endorsement does. Under the cancellation condition, the insurer can cancel for any reason with 10 days' written notice to the insured during, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. D. It covers injury to attendees while loading or unloading them from draft or saddle animals. Charles Munyi has over eight years of experience as a personal finance writer. is the worlds leading manufacturer of construction and mining equipment. Well not relieve the insure of its policy obligations Round to one decimal place. The police arrested the worker and returned the stolen property, including Laura's one emerald earring. The insurance company says it will replace the watch instead of making a loss payment. You may not realize the value of what you own until your home is damaged or vandalized. Scheduled personal property is a supplemental insurance policy that extendscoveragebeyond the standard protection provided in a homeowners'insurance policy. The pair of earrings cost $15,000 and was recently valued at $20,000. Because Coverage C of his homeowners policy contains a sublimit for loss of firearms and their equipment by theft, he will recover up to. damage to the property of others, Determinants of eligibility for coverage under each homeowner form, dwelling type The amount of Molly's outstanding mortgage was $100,000 at the time her house was destroyed in an explosion. On a standard homeowners policy, coverage divides into categories including. The peril causing this loss is malicious mischief. What is the average rate at which the clerk sorts mail during the first 3 months on the job? Credit cards, All of the following properties can be insured under an unendorsed homeowners policy except B. She purchased the necessary lumber and it's piled in her back yard. sailboats Personal Effects Floater, The standard deductible under a Scheduled Personal Property Endorsement is: Liability - Section I of the Homeowners Policy contains the Property Coverages. A. 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? Personal Articles The policy could extend 50% personal property coverage, providing a max claims payout of $125,000. A. DOWNLOAD TO PDF A standard homeowners policy includes coverage for jewelry and other precious items such as watches and furs. $1,500 for loss by theft -- Jewelry, watches, furs, precious and semiprecious stones are covered up to $1,500 for loss by theft. Mac bought a new gas grill from a local department store. C. homes all of the following are special personal property limits under a homeowners policy EXCEPT: a. A friend who is renting a bedroom in the insured's house since it is only three blocks away from work - Since the friend is a tenant, not a relative or a person in the care of the insured, he/she would not be an insured under the policy. D. Property damage -- Physical injury to tangible property, but does not include loss of use of that property, Property damage -- Physical injury to tangible property, but does not include loss of use of that property. The land on which the dwelling is located How was this claim paid? A. replacement cost Liability arising from publication of material that violates another person's right of privacy - All are excluded under the unendorsed HO policy. the maximum amount of coverage that can be written on any single dwelling is $25,000. A) damage to the neighbor's yard. Of the following statements concerning Homeowners policies, which is correct? Personal Articles Floater, Inland Marine policies are called? C) the neighbor's medical expenses. C) Scheduled personal property endorsement. 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. C. fine art Record every valuable possession in your house and copy the serial numbers. How much did Molly's insurance company pay to the mortgagee? B. provides all-risk coverage. Scheduled personal property coverage provides three specificadvantages that extend beyond the benefits of a standard insurance policy: By clicking Accept All Cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. Customer Bailee Floater C. Vermin Which of the following would be covered under the Damage to Property of Others additional coverage of the Homeowners Policy? Caterpillar had no preferred stock outstanding. Which of the following pays all necessary medical expenses to others incurred within 3 years of an accident that causes bodily injury? B. actual cash value, The least likely method of payment for loss under a Floater is: Which of the following claims would be covered under the Personal Injury Endorsement attached to an HO-3 Policy? The coverage for Damage to Property of Others excludes property that is covered in Section I 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. Personal inland marine coverage eliminates many of the various person-al property issues on the homeowners policy forms (and endorsements) and provides a straightforward coverage option. Albert's homeowners policy provides open perils coverage on his home and named perils coverage on his personal property. Coverage D: Loss of Use, Coverage E: Liability What limitations, if any, apply to cash and securities? Molly also has a $2,500 scheduled personal property endorsement covering her jewelry. The dwelling on the residence premises A. ships' cargo 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? 45 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?