C. stated value What should their agent tell them? Under what coverage part of her homeowners policy is the lumber insured? Determine the earnings per share for Years 13. C. Contractor's Equipment Floater A Homeowners Policy will not cover theft of a boat away from premises She wonders what the endorsement does. When two earthquakes occur within a 24-hour period, how does her policy consider the two earthquakes? Which of the following is not an Additional Coverage on the homeowners policy? property removed, Section II provides coverage to third parties including, first aid provided by the insure 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 . People with collections that are valued at more than the maximum coverage amount should consider supplementalscheduled property coverage. What Does Homeowners Insurance Cover and Not Cover? Of the following statements concerning Homeowners policies, which is correct? Policyholders receive a full copy of their policy, which usually runs at least 20 pages. However, there are limits for the coveragevalue for eachitem. It offers "open perils" protection for your house and detached structures like garages, sheds, fences. One classified ad lists a job that pays 64.6K. Round to one decimal place. B. actual cash value, The least likely method of payment for loss under a Floater is: $1,500 for loss by theft -- Jewelry, watches, furs, precious and semiprecious stones are covered up to $1,500 for loss by theft. The court orders that the animal be put to sleep. How much money would she have to earn each year before it was considered a business activity under a homeowners policy? B. Personal Effects Floater, The standard deductible under a Scheduled Personal Property Endorsement is: This modifies the basis of loss settlement from ACV to replacement value. 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. Michael and Tricia have spent much time and money to landscape their property. The personal injury liability endorsement to a HO policy to all the following EXCEPT: A. Slander B. Money is covered up to $500 per occurrence - The limit on money is $200. 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. Bridget reported the theft of her Rolex watch to her insurance company. Coverage may be increased beyond the $2,500 additional coverage (10.) A. C) Scheduled personal property endorsement. Accessed Oct. 15, 2021. B. HO-3 is a comprehensive policy. D. Medical payments coverage is available for the insured and resident relatives. However, he worries that loss to his personal property will be adjusted on an actual cash value basis. $$, 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. A. 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. A. Dwellings under construction are covered for theft Select the person who is not considered an insured under an HO-3 policy? Occurrence -- An accident, including exposure to conditions that result during the policy period in bodily injury or property damage Which of the following would be covered under the Damage to Property of Others additional coverage of the Homeowners Policy? She purchased the necessary lumber and it's piled in her back yard. Which statement is true concerning Coverage D of the Homeowners Policy? What definition in his homeowners policy describes his home? The standard mortgage clause specifies the rights and duties of the mortgagee which include, Paying the premium if the insured fails to do so, The homeowners forms contain certain additional coverage. 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. \begin{matrix} $1,500 for trailers not used with watercraft b. A windstorm damages Tyrone and Belinda's garage and screened-in porch. Scheduled personal property. What is relocation diffusion in human geography? A. A show dog Personal property is covered worldwide. C. 60 D. jewelry, A dry cleaner delivering clothes to customers should get: C. Home schooling is permitted under a Homeowners Policy Get home insurance quotes for scheduled personal property coverage Compare rates 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. A. Bicycle floater Is personal property that is usually located in a secondary residence covered under Coverage C? replacement cost coverage is available by endorsement, for an additional premium. With scheduled personal property, you also. Choose the true statement concerning Homeowners Policies. 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. "Scheduled Personal Articles Insurance Coverage." An insurance endorsement is a change to your insurance policy, such as an addition of coverage. 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. The Section I deductible does not apply to property covered under the Scheduled Personal Property Endorsement - The Scheduled Personal Property Endorsement has no deductible. What are the main advantages to the insured if the homeowners policy is a package policy? They believed that they did not get enough for this property because the settlement was based on actual cash value. 13 Q For instance, if you insure your home for $120,000 and your policy covers your personal property at 10%, your personal items will be insured for up to $12,000. | Allstate Personal property coverage is designed to help protect your belongings. An insurance rider expands your coverage or protects against risks that are not covered by a standard homeowners insurance policy. The following options are available to the insurer EXCEPT: Pay the total cash value of the pair of earrings prior to the loss divided by two. A. barratry An insured has how many days grace period to get most Floater items scheduled? sailboats The different classes of property that are eligible for coverage . 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. People typically schedule their property when its value exceeds the personal property limits in a standard homeowners policy. C. Vermin Which of the following would not be eligible to purchase a Homeowners Policy? Charles completed the Good with Words: Writing and Editing Course through the University of Michigan. Installment Sales Floater While the HO 04 61-Scheduled Personal Property Endorsement provides much more coverage than an. She resides in one unit, her parents in another unit, and each of her three siblings lives in their own unit. 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. Sandy and Stewart had a fire loss, and the insurance company reimbursed them for their damaged personal property. | Allstate An insurance endorsement is a change to your insurance policy, such as an addition of coverage. The Tuttles own a late-19th century Victorian home. 7 Q An insured's home is covered by a DP-3. D) Personal property replacement cost endorsement. Scheduled personal property endorsement lists each insured item, a description of the item, its insured value and highlights the excluded perils. D. Installation Floater, Tourist luggage is insured by which floater? The amount of insurance provided to cover personal property of a Homeowners Policy is what percentage of Coverage A? A. golf clubs Their homeowners policy imposes certain duties on them when a loss occurs. C. Home schooling is covered under a Homeowners Policy 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. B. mariners What definition in the homeowners policy describes Beatrice's activities as a hairdresser? & \text { Year 3 } & \text { Year 2 } & \text { Year 1 } \\ Determine the number of times interest charges are earned for 2014 and 2013. D. Lumber in the insured's yard to be used to build a deck off the kitchen. A. warehouses Losses to the dwelling are paid replacement cost and losses to personal property are paid at actual cash value. 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. Which statement is correct about these forms? Scheduled personal property is an endorsement you add to your homeowners insurance to provide extra coverage for your valuables. storage shed. Coverage D: Loss of Use, Coverage E: Liability Scheduled personal property endorsement. Section II covers the neighbor's medical expenses and property damage losses. Coverage B: Other Structures damage to the property of others, Determinants of eligibility for coverage under each homeowner form, dwelling type 10% ---As with the Dwelling Policy, Coverage B is provided at 10% of the Coverage A limit. A. for landlord . A. What Is an Insurance Endorsement? What endorsements allows an insured to purchase coverage in excess of the special limits of liability contained in the homeowners policy for certain items of personal property'such as jewelry, fine arts, and musical instruments'and also broadens coverage? C. a leased warehouse The Personal Property Replacement Cost Endorsement may be added to cover the contents on a replacement cost basis B. Most companies will require copies of either areceiptor anappraisalof the item before providing the coverage. 50% --- The basic amount of Coverage C insurance is 50% of the Coverage A Limit. 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. C. homes What is it? 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. B) $500.00 A typical homeowners policy does not cover. A. birthday gifts "Personal Property Home Inventory." Scheduled personal property may increase the coverage limits on expensive items such as jewelry, furs, art and antiques, stamps, coin collections, or other select collectibles. The agent recommends either the HO 2 Broad Form or the HO 3 Special Form. 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 A floater can be used to insure each of the following except: According to Menger, what was the main concern of individuals in early trade situations? A. lawnmowers, Bodily injury to others 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. The amount of Molly's outstanding mortgage was $100,000 at the time her house was destroyed in an explosion. B. 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. Having paid Mac's claim, the insurer is likely to do what with respect to the grill's manufacturer? The Tuttles are willing to compromise on insurance coverage to reduce their expenses in maintaining the home. 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. Describe the procedure and comment on its fairness. Take pictures of all items and receipts, and send them to your insurer. Throwing cargo into the sea to save a sinking ship is: 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. Any residents of the same household are insured as long as, Permitted Incidental Occupancies Endorsement. 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. Which of the standard homeowners policies includes malicious mischief as a named peril? Each insurance company will value your personal property differently. "Homeowners Insurance Guide." Which of the following is true regarding an unendorsed HO-4 (tenants form)? A. Scheduled personal property coverage is an endorsement that you can add to your home insurance policy to raise coverage limits for high-value items to ensure all of your belongings are fully protected no matter how or where they're damaged. Which coverage applies under an Ocean Marine policy when cargo is jettisoned to save the ship? 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? coverage for personal property located in a self-storage facility is limited to 10% of Coverage C or $1,000'whichever is greater. Mrs. Delaney hired a contractor to build a deck on the back of her house. Under what additional coverage did his homeowners insurance company reimburse him because he incurred expenses to board up the broken windows? Personal Injury Endorsement - The Personal Injury Endorsement provides coverage for injuries to others that are not of a physical nature. reasonable repairs 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. Liability Coverages are set forth in Section II of the Policy. B. negative state affect Personal belongings coverage includes items stored off-premisesthis means you are covered anywhere in the world. The Home Day Care endorsement does not provide which of the following? Under the HO-8 policy, the dwelling is valued on which basis? Mrs. Oates doesn't want depreciation applied to any claims she might submit under her homeowners policy for loss or damage to her belongings. 45 The Damage to Property of Others duplicates coverage that is included in Section I ---- The Damage to Property of Others Additional Coverage supplements the Property Damage Liability Coverage by providing limited Coverage for damage, caused by the insured, regardless of negligence. A day care employee is covered --- Injury to any employee arising out of the day care business is not covered. 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. On Halloween night a group of pranksters spray-painted graffiti on Sebastian's garage door. Cater pillar I nc. Liability for loss to use of another's property After cooking dinner, he turns off the gas to the grill. C. Damage to property owned by the insured C. Borrowed property meets the definition of contents A. a warehouse Natalie offers to rent a room in her home to a local college student. A pipe bursts in Martha's home and water damages the ceiling, walls, and floors as well as furniture and clothing. Jack knows that his homeowners policy pays for damage to the home on the basis of replacement value. A) 5% of the Coverage A limit. A. covers inherent vice. 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. A. A. domestic transportation shipments Scheduled personal property insurance covers losses and damage to possessions on a replacement-cost basis. He also holds a bachelor's degree in electrical engineering from the Multimedia University of Kenya. Perform regular appraisalsat least annuallyof items insured under scheduled personal property endorsement to ensure you have adequate coverage in case of loss. How does the homeowners policy limit coverage for these types of property? Marilyn and Dan live in an apartment. If it suffered extensive damage and had to be replaced, the replacement value might substantially exceed its market value. Bart keeps a dog that is known in the neighborhood to be vicious. Liability - Section I of the Homeowners Policy contains the Property Coverages. Which of the following would not be covered under Coverage B ' Other Structures in a homeowners policy? Molly also has a $2,500 scheduled personal property endorsement covering her jewelry. 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: A. Theft from a dwelling under construction prior to its occupancy 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 Policyholders wishing to guard these and other items should purchase additional coverage with a scheduled personal property policy. B) Special property limits. Which would NOT purchase a bailee's floater? \text{\$5.000} & \text{1.1\\% compounded quarterly} & \text{8 yr} & \text{c.}\\ Damage to Property of Others coverage is provided up to a specified limit regardless of negligence Structures that are set apart from the dwelling by a clear space Advertisement 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? Personal property coverage is designed to help protect your belongings. All of the following definitions are true of a Homeowners Policy, except: For example,traditionalcoverage may cover the loss from a fire or theft. What endorsement do you recommend? War Molly's claim for damages under Coverage A of her policy was $200,000 and her claim for damages under Coverage C was $150,000. 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. Per person -- Medical payments coverage for all types of policies pays on a 'per person' limit, 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. Borrowed property meets the definition of contents --- Coverage C covers property owned or used by the insured, including property owned by others. Learn about several types of riders that may be available on a home insurance policy. 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. Antiques - Property that cannot be replaced, such as souvenirs, antiques, and paintings are not eligible for the replacement cost coverage. D) Personal property replacement cost endorsement. 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? B. This year, $500,000\$ 500,000$500,000 is to be distributed. C. all-risk D. leased buildings, Each of the following is a Personal Floater EXCEPT: D. jewelry, Inland Marine covers: If her ring is stolen, the insurer will pay (given a $250 deductible)? Definition. subrogate the claim to seek recovery from the manufacturer. Which of the following claims would be covered under the Personal Injury Endorsement attached to an HO-3 Policy? C. A hovercraft D. 90. He wrote about insurance, banking, budgeting, products, services, and more for The Balance and Investopedia. A. breakage Mrs. Zabinski's homeowners policy is written on a form HO-6, Unit-Owners Form. A. affective events theory Which form is designed for the unit-owner of a condominium? 80% --- If Coverage A is less than 80% at the time of a loss to the dwelling, a penalty will be applied to the partial dwelling loss claim payment. Costs the insured was already paying before incurring the loss are not covered. Another job he found has a weekly salary of $1,120. The insured's tenant -- Tenants must acquire their own insurance to cover their personal property and liability.