Exam 13: Homeowners Insurance

Mr. Green's 24-year old son still lives at home while attending college part-time. The son also has an apartment near his college campus. His stereo is stolen from the apartment. The stereo has a $1,400 replacement cost, and an actual cash value of $900. If there is a $100 deductible on Section I, how much will the HO-3 contract pay for the stolen stereo?

Which of the following is not an available endorsement to the HO policy?

Beverly has an HO-3 contract with a $100,000 per occurrence limit on the Liability coverage. She rents out her basement to a college student, and the student's personal property is damaged by Beverly's negligence. The student sues her for $3,000. How much will the HO policy pay for this loss?

The value of a home is $50,000, and the homeowner policy covering it contains an 80% coinsurance clause. Assume the home is insured for $30,000 and a $12,000 loss occurs. How much will the insured recover? (Ignore the ACV calculation and assume there is no fraud or other unusual circumstances surrounding the loss.)

What is meant by "Medical Payments to others"? Why does the coverage exist?

Alberto has an HO-3 contract with $100,000 of Liability Coverage. He is ordered by a judge to pay his neighbor $162,000 because of bodily injuries the neighbor suffered while he and Alberto were fishing in Alberto's old, undeclared 35 horse-power outboard motor boat. How will the contract respond?

Medical Payments coverage in the HO-3 policy covers all of the following except:

Which of the following are not a part of the conditions at the end of the HO-3 policy typically cover?

Replacement cost is most closely synonymous with:

Why is there an "ordinance-or-law exclusion" in a typical HO-3 policy?

Explain the concept of concurrent causation as it applies to collapse.

The homeowners policy agrees to cover the peril of collapse in the "Additional Coverage" section and not as a specified peril because:

What is the rationale for having a special limit of liability on for example a stamp collection?

Ira is a homeowner covered by an HO-3 policy. He lives with his wife and three teenage children, plus one teenage foster child. Who in the household is not covered for personal liability by the HO policy?

Which of the following is not covered by the HO-3 Form?