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44 Cards in this Set

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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

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

5 base premium factors in rating homeowners insurance

dwelling location




public protection class (quality of fire protection)




construction factors




coverage amount




policy form selected

3 base homeowners insurance premium adjustments

endorsements




deductible changes




unusual construction type

3 final adjustment factors in homeowners rates

claim history




insurance score




package policy credits

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

limit for HO-3 Coverage B

10% of limit for Coverage A

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)

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

HO-3 Coverage C limit

50% Coverage A limit

Limit for personal property covered by HO-3 while outside of the listed residence

10% of Coverage C limit, or $1000.


Whichever is greater

Limit for HO-3 Coverage D

30% Limit A

3 things covered by HO-3 Coverage D

additional living expenses




fair rental value




loss of use due to civil authority

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



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

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

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



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

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

when is loss payment due?

60 days after proof of loss has been received and an agreement or appraisal value has been entered

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

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

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

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

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



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

4 classes of additional coverages under HO-3 Section II

claim expenses




first aid expenses




damage to property of others




loss assessment

how much of a loss assessment will HO-3 pay?

$1000

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

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

4 scenarios when business is not excluded from HO-3 liability coverage

earned less than $2000 prior year




volunteer activities




home daycare services involving exchange of services




home daycare services rendered to a relative


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

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



HO-3 section II what does severability of insurance do?

applies insurance independently to each insured, but without increasing insurer's limit of liability

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

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

How does HO-3 liability interact with other collectible insurance?

Coverage E is excess

how much notice must a insurer provide for nonrenewal of HO-3?

30 days

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

what does the Inflation Guard Endorsement do to HO policies?

gradually and automatically increases limits throughout policy period

Optional Earthquake deductible is the greater of which three amounts?

$500


5% of Coverage A limit


5% of Coverage C limit

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

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

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