A. warehouses 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 is provided to property of boarders not related to the insured 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? Scheduled personal property is optional coverage you can add to your standard homeowners insurance policy to cover more risks and increase coverage limits on some high-value items. A Special personal property. D) Whatever it will reasonably cost. Liability for loss to use of another's property Protection extends to additional types of loss above that covered by the homeowner's policy. Premiums for floaters depend on the types of items you've added, how much the items are worth and the area where you reside. He purchases a homeowners policy, which is essentially a. Jack and Mary rent a cabin for two weeks. 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. Which of the following statements BEST describes the homeowners endorsements that are used to provide coverage for fungi, wet or dry rot, and bacteria? The house was destroyed in a fire and the insurance company paid $300,000 for damage to the dwelling. A model airplane - A model or hobby aircraft is covered unless it is designed to carry people or cargo. Determine the number of times interest charges are earned for 2014 and 2013. Mrs. Delaney hired a contractor to build a deck on the back of her house. Covered up to 10% if kept at a location other than the main residence, True or False D. Installation Floater. B. C. Fine art floater 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. Definition. 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: B. covers private art works. How does the homeowners policy limit coverage for these types of property? Which floater covers works of art sold by an art gallery on a consignment basis? What Is an Insurance Endorsement? includes: B. A. damage to the property of others, Determinants of eligibility for coverage under each homeowner form, dwelling type 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? \text{\$5.000} & \text{1.1\\% compounded quarterly} & \text{8 yr} & \text{c.}\\ Coverage D of a Homeowners Policy includes loss of income from an incidental business Damage to these items is not covered if caused by. Standard policies do not cover all types of property and set limitations on the value amount the insurance company will pay for specific losses. C. Contractor's Equipment Floater C. A hovercraft You also have up to $500 of coverage for unauthorized use of your credit cards. What do you tell her? Natalie offers to rent a room in her home to a local college student. Some companies limit the amount to 10 percent of the amount of insurance you have for your possessions. 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 A scheduled personal property endorsement provides adequate coverage for your valuables, but at the expense of a higher insurance premium. C. Borrowed property meets the definition of contents The insurer can do this because losses to personal property are settled on what basis? C. Vermin 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 D. jewelry, Inland Marine covers: - anyone requested by the named insured, provides homeowners liability coverage for personal damage or injury caused while conducting business outside of the building. She resides in one unit, her parents in another unit, and each of her three siblings lives in their own unit. D. jewelry, A dry cleaner delivering clothes to customers should get: 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. fences The police arrested the worker and returned the stolen property, including Laura's one emerald earring. B. Dwellings under construction are covered for theft The insurance company says it will replace the watch instead of making a loss payment. 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. - any other residents who are under 21 and in the care of any member of the insured's family B) Special property limits. By purchasing a scheduled personal. "Homeowners Insurance Guide." Most Personal Articles Floaters are written on: All of the following are true of a Homeowners Policy, except: A. Dwellings under construction are eligible B. 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. An insurance rider expands your coverage or protects against risks that are not covered by a standard homeowners insurance policy. Because Coverage C of his homeowners policy contains a sublimit for loss of firearms and their equipment by theft, he will recover up to. D. Art on exhibition, Which floater covers a heating/air conditioning dealer putting a new furnace system in an office building? C. fine art vandalism and malicious mischief A. buildings C. Contractor's Equipment Floater Describe the procedure and comment on its fairness. Personal Articles 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. 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. Residence Employee -- A Residence Employee might be either an inside domestic servant or an outside premise maintenance employee. The policy details the dollar amount for the standard coverage of various categories. Round to one decimal place. replacement cost coverage is available by endorsement, for an additional premium. What are the main advantages to the insured if the homeowners policy is a package policy? C. is an unscheduled blanket policy. A. inland marine & \text { Year 3 } & \text { Year 2 } & \text { Year 1 } \\ A. Having paid Mac's claim, the insurer is likely to do what with respect to the grill's manufacturer? It provides Commercial General Liability coverage for the day care operation B. 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 . The Home Day Care endorsement does not provide which of the following? Coverage C: Personal Property Learn about what is typically covered in a renters policy and additional coverages you may want to consider. C. $250 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. What is the amount of the dividend s in arrears? Charles Munyi has over eight years of experience as a personal finance writer. With actual cash value, loss is depreciated based on age and condition. A. ships' cargo He has a homeowners policy and wonders if it covers the business equipment. B. A typical homeowners policy does not cover. What is his objection to actual cash value and what, if anything, can he do about it? 30 pools 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. 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. Which of the following statements about coverage under the federal flood insurance . It extends Section II coverages to the insured's home day care business Which homeowners insurance form is appropriate for Marilyn and Dan? C. homes "Scheduled Personal Articles Insurance Coverage." Commercial floaters cover: It extends Section II coverages to the insured's home day care business --- The Home Day Care Coverage Endorsement extends the coverage of the Homeowners Section II to the Day Care Business. This modifies the basis of loss settlement from ACV to replacement value. Coverage D of a Homeowners Policy includes loss of income from an incidental business Antiques - Property that cannot be replaced, such as souvenirs, antiques, and paintings are not eligible for the replacement cost coverage. After cooking dinner, he turns off the gas to the grill. Question 54 of 63 A. replacement cost 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) 5% of the Coverage A limit. A model airplane . He keeps a considerable amount of cash and other valuables on him and around his home. The homeowners policy contains which of the following types of insurance coverage? Personal Articles Floater, Inland Marine policies are called? keep the $10,000 loss payment and the recovered property. Michael and Tricia have spent much time and money to landscape their property. 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. C. Obligations of an insurer end when it pays damages equal to the policy limit for any one occurrence property removed, Section II provides coverage to third parties including, first aid provided by the insure On wet pavement, the standard deviation of stopping distances is 32 feet. The assigning of the value of the insuredproperty will vary by the insurance provider. He is concerned that his homeowners policy will not provide enough coverage. C. 60 Fred and Sharon live in an older home whose replacement cost far exceeds its market value. 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. C. Payment under Damage to Property of Others is made regardless of negligence Todd has a large gun collection and his wife, Tina, has several items of valuable jewelry. 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? What does the representative tell them? 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. Under what section of her homeowners policy is the pool insured, if at all? civil commotion These items are covered for losses caused by all the perils included in your policy such as fire, windstorm, theft and vandalism. \end{array} Record every valuable possession in your house and copy the serial numbers. Which statement is correct about these forms? B. jettison, Floaters provide which type of coverage: It may provide protection in the event of a covered loss, such as theft or fire. What is Scheduled Personal Property? A. Loss settlement is based on the actual cash value up to the amount listed on the endorsement. A better solution. Also known as. B. B. intended use 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 Which of the following additional coverages is only included in certain homeowners forms? Under what coverage part of her homeowners policy is the lumber insured? True or False? B. provides all-risk coverage. Scheduled personal property endorsement Crew of ships are covered by the? D. Coverage D of a Homeowners Policy covers additional living expenses. 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. 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. Its only after a loss that many people realize they should have purchased replacement cost coverage or increased their coverage amounts. 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. Find (a) the maturity value and (b) the present value of the note assuming 5%5 \%5% per year compounded semiannually. 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. personal property of roomers or boarders is excluded under the homeowners policy. HO-6 ----- The HO-6 Form is designed for the owner-occupant of a condominium unit. Which endorsement would have provided a better loss settlement? C. Coverage is not provided to a garage rented for private garage purposes Fair market value D) Personal property replacement cost endorsement. Other structures, which include items such as sheds, fences, and the mailbox. Which of the following is true regarding eligibility of a Homeowners Policy? 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. Liability coverages are set forth in Section II of the Policy. Examples of possessions that may have limited coverage from standard policies include fine artwork, antiques, jewels, furs, and gold coins or bars. Home-Based Business Insurance: What It Is, Costs, and Companies, Home Daycare Insurance: What It Is, Costs, and Companies. It includes various perils outside your typical dwelling coverage. (Round to the nearest cent. Mac bought a new gas grill from a local department store. Which of the following pays all necessary medical expenses to others incurred within 3 years of an accident that causes bodily injury? D. Lumber in the insured's yard to be used to build a deck off the kitchen. 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? 150,000 to Carole and $75,000 each to Sandra and Lynn. 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. C. all-risk A Homeowners Policy will not cover theft of a boat away from premises A) A duty to act, a failure to act, an injury to another person and an uninterrupted chain of events. 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? However, he worries that loss to his personal property will be adjusted on an actual cash value basis. 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. An insurance endorsement is a change to your insurance policy, such as an addition of coverage. Personal Injury Endorsement - The Personal Injury Endorsement provides coverage for injuries to others that are not of a physical nature. Scheduled personal property endorsement lists each insured item, a description of the item, its insured value and highlights the excluded perils. D. Any person legally responsible for watercraft owned by an insured. Personal property coverage is designed to help protect your belongings. Both the cemetery plot and greenhouse are located at the residence premises. $1,500 for loss by theft -- Jewelry, watches, furs, precious and semiprecious stones are covered up to $1,500 for loss by theft. A. a stated value basis. D. It covers injury to attendees while loading or unloading them from draft or saddle animals. A. a duplex that is owner-occupied 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. Scheduled personal property covers additional risks that your standard homeowners policy doesnt cover. By purchasing the right insurance policy, you may be able to protect yourself from the financial costs of unforeseen losses, such as fire and natural disasters, frozen pipes, or even burglaries. Each of these payouts would be subject to a deductible. The right of privacy was not acknowledged as a separate right until the 1960s. D. Coverage is provided to property of boarders not related to the insured, Under Coverage A of the Homeowners Policy, all of the following are covered, except: Eloise installed an in-ground swimming pool in the back yard of her home. What is the ppp-value? Liability - Section I of the Homeowners Policy contains the Property Coverages. How would a covered loss to their home be settled or adjusted? 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. How Much Homeowners Insurance Coverage Do I Need? Which statement is true concerning Section II of a Homeowners Policy? }\\ Mrs. Zabinski's homeowners policy is written on a form HO-6, Unit-Owners Form. On what form is his policy written? C) the neighbor's medical expenses. Kevin is looking for a job as a piano technician. Wisconsin Office of the Commissioner of Insurance. A Homeowners Policy will not cover theft of a boat away from premises Under the unendorsed Homeowners Policy, jewelry is covered up to what amount? Personal property is covered worldwide. - 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. D. Camera floater, Which floater may be used to cover office equipment and furniture? motorized wheelchairs 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. The art world is comparing the (a) seven-year-old, (b) seven year old child prodigy to Picasso. B. Exhibition floater $0 What Coverage C special limit of liability applies to the loss? 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. While the HO 04 61-Scheduled Personal Property Endorsement provides much more coverage than an. The replacement value of the home is $450,000. Which would NOT purchase a bailee's floater? Members of the family under the age of 24 living at school away from the home B. Choose the true statement concerning Homeowners Policies. 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. For example,traditionalcoverage may cover the loss from a fire or theft. Well not relieve the insure of its policy obligations D. Damage to property owned by the insured's tenant. $$ C. 100% of the actual cash value. At a .05 level of significance, do the sample data justify the conclusion that the variance in stopping distances on wet pavement is greater than the variance in stopping distances on dry pavement? Gabriella lives in a multi-unit dwelling. \text{\$200} & \text{2\\% compounded annually} & \text{2 yr} & \text{a. A Personal Article Floater can cover: Jack knows that his homeowners policy pays for damage to the home on the basis of replacement value. riot D. loading docks and cattle shipped to market, All-risk policies cover: D. Contractor's Equipment Floater, Inland Marine will NOT cover: B) cost to have the dog put to sleep. Her jeweler will reproduce the lost earring for $10,000. These items of personal property are subject to dollar limits and should be insured under a scheduled personal property endorsement. D. Property damage -- Physical injury to tangible property, but does not include loss of use of that property, Property damage -- Physical injury to tangible property, but does not include loss of use of that property. D) Personal property replacement cost endorsement. A) Coverage C--Personal property. The stone could be replaced for $1,700. A. lawnmowers, Bodily injury to others A show dog $$, 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. Which of the following claims would be covered under the Personal Injury Endorsement attached to an HO-3 Policy? Cassie notices that a Scheduled Personal Property Endorsement (HO 04 61) is attached to her homeowners policy. The pair of earrings cost $15,000 and was recently valued at $20,000. Scheduled personal property insurance covers losses and damage to possessions on a replacement-cost basis. Which of the following would not be included in the meaning of 'insured' in a homeowners policy? B) cost to have the dog put to sleep. B. B. inherent vice Which statement is correct? Coverage B: Other Structures Physicians and Surgeons Floater Which of the following would be covered under the Damage to Property of Others additional coverage of the Homeowners Policy? 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. Get home insurance quotes for scheduled personal property coverage Compare rates How can government use taxes to reallocate the use of resources in the economy?
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