Tom and Ann have just bought a condominium for their residence. A. commercial buildings A. no, because there are more than 4 units in the dwelling. B. stamp and coin collections Albert's homeowners policy provides open perils coverage on his home and named perils coverage on his personal property. Which of the following would not be an insured under Section II of the Homeowners Policy? pools All of the following are true of a Homeowners Policy, except: A. Dwellings under construction are eligible B. Insurer investigation expenses are in addition to the limits stated in Coverage E Personal Articles Floater, Inland Marine policies are called? Learn about the differences between replacement cost and actual cash value on a homeowners insurance policy. B. 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. 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 . 7 Q An insured's home is covered by a DP-3. 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. Coverage C: Personal Property When two earthquakes occur within a 24-hour period, how does her policy consider the two earthquakes? reasonable repairs B. Which of the following Coverages is not found under Section I of the Homeowners Policy? coverage for personal property located in a self-storage facility is limited to 10% of Coverage C or $1,000'whichever is greater. Coverage may be increased beyond the $2,500 additional coverage (10.) Texas Department of Insurance. 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. Any residents of the same household are insured as long as, Permitted Incidental Occupancies Endorsement. C) the neighbor's medical expenses. The insurance company says it will replace the watch instead of making a loss payment. 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. The following are all additional coverages under a Homeowners Policy, except: Governmental Action - Governmental action is an exclusion; not an additional coverage. personal property of roomers or boarders is excluded under the homeowners policy. A. Under an HO-3 policy, what is the coinsurance requirement? A. broad The property section of the homeowners policy excludes coverage for certain types of property. Damage caused intentionally by the insured's 10-year-old son Perform regular appraisalsat least annuallyof items insured under scheduled personal property endorsement to ensure you have adequate coverage in case of loss. Charles completed the Good with Words: Writing and Editing Course through the University of Michigan. D. Coverage D of a Homeowners Policy covers additional living expenses. A. Physicians and Surgeons Floater How does the homeowners policy limit coverage for these types of property? A neighbor visits them and upon leaving, trips over some fishing equipment that Jack left in the yard. A commercial bank has $100 million in checkable-deposit liabilities and$12 million in actual reserves. Personal Articles Floater Which of the following would not be eligible to purchase a Homeowners Policy? Learn about what is typically covered in a renters policy and additional coverages you may want to consider. Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. The markings on the door did not permanently damage it but the door required cleaning and minor repair work. An insurance endorsement is a change to your insurance policy, such as an addition of coverage. Select the person who is not considered an insured under an HO-3 policy? Round to the nearest dollar. explosion 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. Inherent vice theft, Additional coverages found in all homeowners forms include, Debris removal Personal property coverage is designed to help protect your belongings. An additional insurance coverage, known as scheduled personal property, can help provide greater protection for some of your most valued belongings. One classified ad lists a job that pays 64.6K. \begin{matrix} (Round to the nearest cent. 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? The meeting will be held at GIA's headquarters at 200 Cedar St, Seattle, WA 98121. 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. 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. Jones act Which method of Lawson valuation is contrary to the basic concept of indemnity? How would a covered loss to their home be settled or adjusted? lawnmowers, Bodily injury to others Which statement is true concerning Section II of a Homeowners Policy? D. Territorial Limits. What is Scheduled Personal Property? What homeowners form would be most appropriate for their insurance needs? 80% of the replacement cost. detached garages How was this claim paid? A. covers public art collections. For example, this endorsement wont cover property damage due to normal wear and tear, or loss caused by corrosion or rust. Bicycle floater The amount of Molly's outstanding mortgage was $100,000 at the time her house was destroyed in an explosion. Which of the following claims would be covered under the Personal Injury Endorsement attached to an HO-3 Policy? Coverage A under the Homeowners Policy includes coverage for which of the following? A day care employee is covered --- Injury to any employee arising out of the day care business is not covered. Homeowners policy endorsement that covers the insured's business activities conducted on the residence premises. Structures rented to someone who is not a tenant for use only as a private garage. 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. 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. For more jewelry. \text{Future Value} & \text{Rate} & \text{Time} & \text{Deposit (to nearest cent)}\\ A. What definition in the homeowners policy describes Beatrice's activities as a hairdresser? D. Private structures owned by the insured at other locations. These items of personal property are subject to dollar limits and should be insured under a scheduled personal property endorsement. However, there are still a couple of issues to note when using a form such as the HO 04 61 (05 11)Scheduled Personal Property Endorsement. A HO-3 policy provides coverage on which basis? C. fine art She purchased the necessary lumber and it's piled in her back yard. The police arrested the worker and returned the stolen property, including Laura's one emerald earring. The policy states that the insurance company will provide defense for the insured at the insurer's expense, even when the insured is not at fault. 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. A floater can be used to insure each of the following except: Personal Articles The following coverages are all found under Section I of the Homeowners Policy, except: Personal Injury Liability -- Section I of the Homeowners Policy contains Property coverages. Coverage A: Dwelling Losses to dwellings and other structures are paid at replacement cost. Scheduled personal property. 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. The insured's tenant - Roomers or boarders are not considered insureds, and would need to purchase their own liability policies. Which of the following homeowners policies covers tenants or renters? "Scheduled Personal Articles Insurance Coverage." 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. replacement cost coverage is available by endorsement, for an additional premium. A Homeowners Policy will not cover theft of a boat away from premises Sandy and Stewart had a fire loss, and the insurance company reimbursed them for their damaged personal property. Notify adjacent neighbors of the damage and possible risk to them, Samuel keeps a gun collection at home. 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. C. It covers injury to an employee, as well as attendees, arising out of day care operations Most Personal Articles Floaters are written on: A. B. inherent vice The homeowners policy contains which of the following types of insurance coverage? A. The Tuttles are willing to compromise on insurance coverage to reduce their expenses in maintaining the home. This modifies the basis of loss settlement from ACV to replacement value. What are the main advantages to the insured if the homeowners policy is a package policy? On wet pavement, the standard deviation of stopping distances is 32 feet. 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. Each of these payouts would be subject to a deductible. This provides coverage for specific items of property that exceeds the internal limit on the policy, Loss settlement is based on the ____ ____ ____ up to the amount listed on the endorsement. 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. A. 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. 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. - anyone requested by the named insured, provides homeowners liability coverage for personal damage or injury caused while conducting business outside of the building. trees, shrubs, plants Your insurance companys underwriting team will review and get back to you with the status of your request. Get home insurance quotes for scheduled personal property coverage Compare rates Which of the following is not an Additional Coverage on the homeowners policy? Read our, Definition and Examples of Scheduled Personal Property, Pros and Cons of Scheduled Personal Property, Answers to Common Homeowners Insurance Questions, What You Need To Know About Hurricanes and Insurance Coverage. One day the dog attacks a neighbor while she is working in her own yard. \end{array} An insured has how many days grace period to get most Floater items scheduled? It provides Commercial General Liability coverage for the day care operation What coverage on her homeowners policy will pay for the necessary increase in living expenses she incurs because of her evacuation by a civil authority? Covers people who conduct business at home and have a person injured on their property, The HO-3 provides _____ peril coverage on dwelling and _____ peril coverage on personal property, Standard exclusions in the homeowners forms, Earth movement Definition. 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. 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. | Allstate Personal property coverage is designed to help protect your belongings. A Personal Articles 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. People with collections that are valued at more than the maximum coverage amount should consider supplementalscheduled property coverage. 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. Laura's insurer paid $10,000 claim to reproduce the missing earring. B. According to Menger, what was the main concern of individuals in early trade situations? D. Coverage is not provided to a garage rented for private garage purposes. 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? An endorsement can settle personal property losses on a replacement cost basis. all of the following are special personal property limits under a homeowners policy EXCEPT: a. Are Izzy's personal belongings, including his electronic equipment, insured under Natalie's homeowners policy? \text{\$5.000} & \text{1.1\\% compounded quarterly} & \text{8 yr} & \text{c.}\\ C. Borrowed property meets the definition of contents The replacement value of the home is $450,000. C. all-risk 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. Scheduled personal property insurance covers you for greater risks than your homeowners' insurance policy. Liability Coverages are set forth in Section II of the Policy. In what type of home does Mrs. Zabinski live? 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. 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. It may provide protection in the event of a covered loss, such as theft or fire. 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} D. It covers injury to attendees while loading or unloading them from draft or saddle animals. She wonders what the endorsement does. 1 These items are covered for losses caused by all the perils included in your policy such as fire, windstorm, theft and vandalism. To earn some extra money, Mrs. Holden babysits her next door neighbor's children on a regular basis in her own home. The land on which the dwelling is located C. Contractor's Equipment Floater Use the Web site for the Academy Awards to investigate the full election procedure for the Academy Awards. C. The dwelling on the insured premises, plus any structures that are attached to the dwelling 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 Yvette's diamond ring is listed in the schedule of the Scheduled Personal Property Endorsement (HO 04 61) attached to her homeowners policy. The agent recommends either the HO 2 Broad Form or the HO 3 Special Form. Debris removal Kevin came home from work to find that his house had been vandalized. sailboats In contrast, a traditional homeowners policy covers the property on an actual cash value basis. B. Insects Money is covered up to $500 per occurrence - The limit on money is $200. 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. C. A hovercraft Today, it's replacement value is $60K. Losses to the dwelling are paid replacement cost and losses to personal property are paid at actual cash value. Bridget reported the theft of her Rolex watch to her insurance company. Under what coverage part of her homeowners policy is the lumber insured? Victoria is considering purchasing a condominium unit and asks her insurance agent what type of homeowners policy would be best for her. B. D. leased buildings, Each of the following is a Personal Floater EXCEPT: 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. 30 Under Coverage C of a Homeowners Policy, all of the following losses are included, except: Property of a roomer, boarder or tenant --- Property of roomers, boarders, or tenants is not covered under the policy. Which of the following is true regarding eligibility of a Homeowners Policy? Cassie notices that a Scheduled Personal Property Endorsement (HO 04 61) is attached to her homeowners 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 Accessed Oct. 15, 2021. The Section I deductible does not apply to property covered under the Scheduled Personal Property Endorsement - The Scheduled Personal Property Endorsement has no deductible. Most companies will require copies of either areceiptor anappraisalof the item before providing the coverage. In addition, it provides personal liability coverage. Property in transit. 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. 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. Other structures, which include items such as sheds, fences, and the mailbox. Learn how coverage works. Will this damage be covered by the Coverages A, B, or C of her HO 3 policy? A. How much did Molly's insurance company pay to the mortgagee? Theft from a dwelling under construction prior to its occupancy 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? }\\ By purchasing a scheduled personal. What Is Personal Property Coverage? & \text { Year 3 } & \text { Year 2 } & \text { Year 1 } \\ 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. Another benefit of a scheduled personal property endorsement is the extra coverage you would not have under standard personal property coverage. Personal Effects Floater, The standard deductible under a Scheduled Personal Property Endorsement is: $100 B. loading bridges, Which Personal Articles Floater item is insured on a stated value basis? On a standard homeowners policy, coverage divides into categories including. 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. 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? 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. Damage to Property of Others coverage is provided up to a specified limit regardless of negligence Accessed Oct. 15, 2021. Fred and Sharon live in an older home whose replacement cost far exceeds its market value. Which form is designed for the unit-owner of a condominium? 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. Both the cemetery plot and greenhouse are located at the residence premises. With respect to Jack and Mary's homeowners policy, the rental property would be considered which of the following? Relatives of the named insured, meaning they are related by blood, marriage, or adoption D. Installation Floater, Tourist luggage is insured by which floater? B. imports True or False? A) damage to the neighbor's yard. Physicians and Surgeons Floater An unscheduled property floater is an addition to an existing property insurance policy to cover items that have not been individually itemized or valued. B. fine art 150,000 to Carole and $75,000 each to Sandra and Lynn. A. ACV Which of the following is not true concerning Section II of the Homeowners Policy? "Personal Property Home Inventory." Which of the following is not covered if the insured has broad peril coverage? A. Liability arising from publication of material that violates another person's right of privacy - All are excluded under the unendorsed HO policy. Which statement is true concerning Coverage D of the Homeowners Policy? C. Residence employee -- An employee of an insured whose duties are related to the maintenance or use of the residence premises C. buildings \text{\$400} & \text{1.5\\% compounded semlannualiy} & \text{4 yr} & \text{b. George just returned from Europe with a beautiful Swiss watch valued at $10,000. American Family Insurance. Note: We don't currently offer the ability to schedule property, but stay tuned! Also known as scheduled personal property coverage, this is a way to raise the coverage limits of specific high-value items, such as valuable family heirlooms, that you own. Items that are scheduled and insured under a scheduled personal property endorsement are covered on a . As their agent, which homeowners coverage form should you offer them? D) Whatever it will reasonably cost. An insurer is not required to accept any property that an insured has. B. an open perils (all-risk) basis. Credit cards, All of the following properties can be insured under an unendorsed homeowners policy except - all relatives of the named insured who live in the same household