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44 Cards in this Set
- Front
- Back
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3 categories of people eligible for ISO Homeowners Coverage |
individuals/families who own a private home in which they reside renters owners of condo units in which they reside |
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6 types of HO forms |
2--named perils on all 3--open perils on real, named on personal 4--renters, named perils on personal, no real 5--open perils on all 6--unit owners, named on personal, limited real 8--modified, limited named perils on all |
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5 base premium factors in rating homeowners insurance |
dwelling location public protection class (quality of fire protection) construction factors coverage amount policy form selected |
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3 base homeowners insurance premium adjustments |
endorsements deductible changes unusual construction type |
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3 final adjustment factors in homeowners rates
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claim history insurance score package policy credits |
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3 things covered under HO-3 coverage A |
1-4 family dwelling in which insured resides attached structures materials and supplies located on or next to covered dwelling used to construct or repair the dwelling |
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limit for HO-3 Coverage B
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10% of limit for Coverage A |
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3 exclusions for HO-3 Coverage B |
structure rented to someone who is not a resident of the dwelling (unless private garage) structure from which business is conducted structure used to store business property (unless business property solely owned by insured or tenant of the dwelling and doesn't include gas or liquid fuel) |
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3 things covered by HO-3 Coverage C |
contents of insured property, whether owned by insured or not property owned by a guest or resident employee while in any residence occupied by insured items the insured owns or uses, anywhere in the world |
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HO-3 Coverage C limit |
50% Coverage A limit |
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Limit for personal property covered by HO-3 while outside of the listed residence |
10% of Coverage C limit, or $1000. Whichever is greater |
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Limit for HO-3 Coverage D |
30% Limit A |
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3 things covered by HO-3 Coverage D |
additional living expenses fair rental value loss of use due to civil authority |
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12 Excluded perils under HO-3 Coverages A and B |
Collapse (unless result of covered loss) Freezing of utilities or appliance Freezing, thawing, or weight of water or ice on external property Theft of construction materials before dwelling is finished Vandalism if vacant more than 60 days Mold and rotting that is not hidden Natural deterioration and settling Smoke from agricultural smudging or industrial operations Pollutants Animals are not covered, nor is damaged caused by owned animals Faulty construction, planning, or materials Acts or decisions, or lack thereof, of any person or organization |
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13 Named Perils for HO-3 Coverage C |
Fire Lightning Windstorm or hail that lets weather elements inside Explosion Riot or civil commotion Aircraft Vehicles Smoke Vandalism Theft Falling objects that break through roof or wall Water or steam damage from utilities or appliance Volcanic eruption |
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9 Exclusions for all of HO-3 Section I |
Ordinance or law (unless covered loss already occurred) Earth movement Water--flood, sewage, waves Power failure that occurs off premises Neglect War Nuclear hazard Intentional loss Governmental destruction or confiscation |
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8 duties after loss under HO-3 Section I |
Prompt notice Notify police Notify credit card company Prevent further damage Cooperate with insurer Prepare an inventory Verify the loss Sign a sworn proof of loss |
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How much does insurer pay in the event of a loss to a building (HO-3) hint: based on how limit compares to replacement cost of entire building |
If limit covers at least 80% of the replacement cost: insurer pays up to limit If limit does not cover 80% of the replacement cost: insurer pays (limit/80% replacement cost of building)*(replacement cost of loss) OR ACV, whichever is higher |
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2 options insurer has when part of a set is damaged (HO-3) |
pay to replace the item and restore the set to its original value pay the difference in the ACV of the total set minus the ACV of what remains |
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when is loss payment due? |
60 days after proof of loss has been received and an agreement or appraisal value has been entered |
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3 things in the mortgagee clause of the HO-3 |
in the event of structure loss, payments are made to insured and mortgagee jointly mortgagee has rights independent of insured insurer must mail ten day notice of cancellation or nonrenewal to mortgagee in addition to the insured |
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What does the recovered property clause say in the HO-3? |
if insurer pays a claim for the loss of property, and the property is later recovered... the insured may either keep the property or the money but not both |
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2 instances where other coverage besides HO-3 applies, and what happens |
more than one insurance policy: each pays a proportional share home also covered by service plan or warranty: HO-3 applies as excess |
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5 Additional coverages under HO-3 Coverage D that are dependent on another covered loss |
Debris removal Reasonable repairs Ordinance or law Collapse Broken glass |
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5 Additional coverages under HO-3 Coverage D that are not dependent on another covered loss |
trees, shrubs, and other plants fire dept service charge property removed to escape threat of covered peril landlord's furnishings grave markers |
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3 scenarios where HO-3 Coverage F may apply |
injury occurs to a person who has the insured's permission to be at the insured location person is away from insured location and injury arises out of a condition at the insured location person injured while away from insured location by an activity performed by the insured |
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4 classes of additional coverages under HO-3 Section II |
claim expenses first aid expenses damage to property of others loss assessment |
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how much of a loss assessment will HO-3 pay? |
$1000 |
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10 Exclusions to HO-3 Coverages E and F |
expected or intended injury business professional services nuclear war communicable disease molestation or abuse controlled substance workers comp motor vehicle or motorized craft |
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4 exclusions to HO-3 Coverage E only |
contractual liability damage to property owned by or rented to insured injury to insured, resident relative, or resident under 21 personal injury |
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4 scenarios when business is not excluded from HO-3 liability coverage
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earned less than $2000 prior year volunteer activities home daycare services involving exchange of services home daycare services rendered to a relative |
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3 scenarios when rental liability is covered by HO-3 |
rented only on occasional basis and only for residence rental of part of a location to no more than two roomers rental of part of a location and used only as office school, studio, or private garage |
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7 times when motor vehicle liability is covered by HO-3 |
toy vehicle with max speed 5mph in dead storage on insured location used solely to service a residence designed for assisting handicapped people recreational vehicles while on insured property, or not owned by insured golf carts used to play golf or used within private residential assoc. trailers not connected to another motor vehicle |
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HO-3 section II what does severability of insurance do? |
applies insurance independently to each insured, but without increasing insurer's limit of liability |
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4 duties of insured following loss under HO-3 section II |
prompt written notice cooperate with investigation and defense forward legal documents do not make voluntary payment |
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3 duties of an injured person to receive payments under HO-3 Coverage F |
prompt written proof of claim release medical records submit to physical exam chosen by insurer |
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How does HO-3 liability interact with other collectible insurance? |
Coverage E is excess |
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how much notice must a insurer provide for nonrenewal of HO-3? |
30 days |
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What does the Personal Property Replacement Cost Loss Settlement Endorsement do to HO policies? |
Insurer pays ACV until property is replaced or repaired, then pays the rest |
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what does the Inflation Guard Endorsement do to HO policies? |
gradually and automatically increases limits throughout policy period |
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Optional Earthquake deductible is the greater of which three amounts? |
$500 5% of Coverage A limit 5% of Coverage C limit |
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What does the Assisted Living Care Coverage Endorsement do to HO policies? |
provides coverages C and E to insured's relative who is a resident of an assisted living facility |
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3 requirements for a home business to be covered by the HO Home Business Insurance Endorsement What does this coverage exclude? |
owned by insured operated from residence premises max of 3 employees still excludes professional liability |
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What does Additional Residence Rented to Others Endorsement do to HO policies? |
extends Section II coverage to 1-4 family dwellings rented to others by insured |
