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WorksheetsHomeowners (HO)
Total questions: 56
Worksheet time: 56mins
Axle Jamison contacts an insurance agent to purchase a homeowners policy. The agent advises Axle that he will stop by later that day to inspect the home and take the Application. Before the agent arrived, Axle hides his collection of venomous snakes and does not disclose them on his policy application. The homeowner’s policy, with personal liability coverage is issued later that week, and the next day a snake escaped and bites the neighbor. How should the adjuster handle this claim?
The claim will cover Axle for personal liability to the neighbor.
The claim will pay medical payments to the neighbor.
The claim will be denied because Axle is guilty of concealment.
The claim will be denied because there is no coverage for liability on a homeowner's policy.
Which of the following is the limit for “loss assessment” provided by Section II of the homeowners forms?
$2,500
$1,500
$1,000
$5,000
Which of the following would NOT be covered under the HO-2 form?
A strong wind blows down a tree in the insured's front yard and lands in the insured's living room.
The insured's kayak that gets damaged while in the insured's garage from a fire.
The cost of the hotel when the insured had to stay there after the roof caved in from too much snow.
the insured hits and damages his fence with his car
What is NOT true of medical payments to others?
The basic limit is $1,000.
Negligence does not have to be established.
It covers medical expenses incurred within four years of an accident.
It pays on a per-person basis.
What would NOT be excluded from Section II of your homeowners policy?
business pursuits
bodily injury to any person covered under Workers' Compensation
your pet Doberman bites the mailman
professional liability
Walt has a home with a replacement cost of $100,000. He has an HO-3 policy with a value of $60,000. Last week there was a fire at Walt's home resulting in $30,000 of damage. What will Walt's HO-3 pay for this loss?
$24,000
$22,500
$27,500
$30,000
The insured's home has a replacement cost of $150,000. In order to have replacement cost coverage for partial losses to the dwelling, their homeowners policy must be written with a face amount equal to or greater than
$120,000.
$100,000.
$75,000.
$150,000.
What is NOT eligible for a homeowners policy?
intended owner-occupant of a dwelling under construction
owner-occupant of a five-unit structure
one co-owner of a two-family dwelling that is occupied by co-owners
owner-occupant of the dwelling
What would be covered under a homeowners policy?
property, in an apartment on the residence premises rented to others, valued at $2,000
property of boarders or tenants
aircraft and parts except for model or hobby aircraft
animals, birds, or fish
Joe has a homeowners policy covering his dwelling. If his home became unusable because of a covered peril, what coverage would Joe use to cover his additional living expenses?
Coverage C
Coverage B
Coverage D
Coverage A
What is NOT excluded on the homeowners policy?
cars
motorcycles
pets
computers
What is required in order to insure a mobile home on a homeowners policy?
there is no way to insure a mobile home on a homeowners policy
underwriter approval
mobile home endorsement
MO-3 policy
What is the deductible under the optional earthquake endorsement on the HO policy?
a percentage of the amount of the claim
$100
$500
a percentage of the policy limit
A mobile home is
eligible only through the FAIR Plan.
a home that is not on a permanent foundation.
too much of a wind risk for a homeowners policy.
not eligible for a homeowners policy.
Who is NOT considered to be insured under the homeowners policy?
your mother who lives in another state
your daughter
you
your son
Which home-operated business is NOT covered by the optional HO endorsement Permitted Incidental Occupancies?
tutoring service
art studio
law office
bookkeeping service
The insureds have an HO-3 policy valued at $150,000. They have a detached garage that was destroyed by a covered peril. It will take $17,000 to replace the garage. Their homeowners policy will pay
$150,000.
80% of the loss because of the co-insurance requirement.
$17,000.
$15,000.
The insureds recently had a brand new detached garage built next to their home for $12,000. They have a HO-3 policy with $125,000 coverage on the dwelling, but they have never had a garage before. In order to have coverage on the garage, they should do what?
keep the HO-3 and add a garage endorsement
nothing
upgrade to an HO-5 program
buy a separate garage policy
Jill has a homeowners policy (HO-3) with a value of $95,000. After cashing her payroll check, she decides to go to the store. Jill leaves $800 in the glove box of her car while she is shopping. She returns to find her car had been entered and her money is missing. Her HO-3 policy will reimburse her for
nothing--she left the money where anyone could find it.
nothing-she would need to claim it on her auto policy.
$200.
$600.
What homeowners form provides broad form coverage for both the dwelling and personal property?
HO-3
HO-2
HO-8
HO-5
Which peril on the HO-8 is NOT an exclusion?
landslide
war
theft
flood
Business property is covered under the homeowners policy for what amount?
full coverage on the premises, but 10% of the contents limit off premises
$2,500 on the premises and $1,500 off the premises
$2,500 on the premises and $2,500 off the premises
no coverage on the homeowners policy, as it needs to be covered on a business policy
Mold is excluded on the all risk coverage form unless
it results from a covered plumbing/water loss.
it results from seepage through a foundation or flooring.
you discover the mold within 30 days of it appearing.
it ensues after a major storm.
Which of the following perils causing damage to property would be covered under the homeowners policy?
lava flow
earthquake
tsunami
flood
What would NOT be covered under all homeowners forms?
reasonable repairs to protect the property from further damage
the insured's car slides off her icy driveway and runs over her valuable rose garden, causing $200 in damages
someone steals the insured's checkbook and writes fraudulent checks on the insured's account
a tornado shatters the glass in the insured's windows and storm doors
Coverages A (dwelling) and B (other structures) of the HO-3 policy covers damage caused by
a mechanical breakdown.
a domestic animal.
a wild animal.
insects.
The personal articles floater is similar in coverage to which of the following endorsements to the HO policy?
Personal Property Replacement cost
Guaranteed Replacement cost
Special Personal Property coverage
Scheduled Personal Property
What property is included in coverage under Coverage C of the homeowners policy?
boarders' property
property your daughter has away with her at college
property in an apartment held for rental by the insured
animals, birds, and fish
All are true about medical payments of a homeowner's policy, EXCEPT
they are to others.
they are no fault.
they are designed to prevent lawsuits.
they will not be paid unless the insured is negligent.
There are no special limits under coverage C of the HO policy for
jewelry.
money.
antiques.
watercraft.
What loss is included in all homeowners policies?
accidental and sudden discharge of water from a plumbing system
area power failure that shuts down the insured's refrigerator for 12 hours while he is on vacation, causing meat to spoil
earthquake damage to the home
flood damage to the home
The insured wants to get the maximum protection for his home and personal property. He should purchase the
HO-1.
HO-2.
HO-5
HO-3.
Which of the following is NOT covered under Coverage A of the HO?
construction material located next to the premises
attached structures
dwelling
land
The homeowners form that provides open peril coverage on the dwelling and broad coverage on personal property is the:
HO-2
HO-6
HO-4
HO-3
All are excluded on an HO-8 EXCEPT
flood and sewer backup.
animals, birds and fish.
off premises power failure.
personal property away from the premises.
What would be eligible for the homeowners policy?
farmhouse and farm buildings located on a 50- acre farm
single-family home the owner rents to another person
single-family home occupied by the owner and one boarder
home where the owner runs a machine shop in the basement
What property could be insured under Coverage C?
ultra-light plane
tool shed
your old art collection
furniture belonging to a tenant
Suppose an injured party collects $1,000 under an insured's medical payments to others coverage and still sues the insured for pain and suffering. If the injured party is ultimately awarded $50,000, which includes the medical payments, what would the insured's liability pay?
$50,000
$49,000
$51,000
$0
