Members of the family under the age of 24 living at school away from the home Learn about the differences between replacement cost and actual cash value on a homeowners insurance policy. A standard homeowners insurance policy covers your personal property up to a specific limit. Coverage does not apply to property damage covered under Section I of the policy. Losses to dwellings and other structures are paid at replacement cost. Broad perils coverage - These two Forms provide Broad Form Perils Coverage. Coverage A: Dwelling On a standard homeowners policy, coverage divides into categories including. D. Medical payments coverage is available for the insured and resident relatives. C) The criminal, the crime, a police officer and a court of law. D. Breakage, Fundamentals of Financial Management, Concise Edition, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Fundamental Financial Accounting Concepts, Alvin A Arens, Mark A Beasley, Randal J Elder. C. Borrowed property meets the definition of contents As their agent, which homeowners coverage form should you offer them? A. One day the dog attacks a neighbor while she is working in her own yard. When two earthquakes occur within a 24-hour period, how does her policy consider the two earthquakes? How would a covered loss to their home be settled or adjusted? Moving property adds some risks you don't normally face, so it makes sense to protect your farm personal property if you're going to be moving it from place to place. subrogate the claim to seek recovery from the manufacturer. 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 endorsement provides replacement cost coverage on certain building items that are expressly excluded from the replacement cost coverage applicable to buildings: awnings, carpeting, household appliances, outdoor antennas, and outdoor equipment, in addition to replacement cost coverage on personal property. A complete list or inventory of your personal property and its total value will help you decide how much coverage is adequate and make filing claims easier. All of the following would be included in the definition of 'insured location', except: A 5-family dwelling in which the insured lives in one of the units, including the structures and grounds ----Eligible residential dwellings are those containing one to four residential units and no more than 2 roomers or boarders per family. How much did Molly's insurance company pay to the mortgagee? \begin{matrix} The insurer can do this because losses to personal property are settled on what basis? Floater Insurance Definition - Investopedia Because the medical payments limit applies per person, the insurer will pay actual expenses up to $5,000 per person: $5,000 + $4,000 + $3,000 + $2,000 + $1,000 = $15,000. CA Personal Lines Flashcards Which of the standard homeowners policies includes malicious mischief as a named peril? 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. Coverage C of a Homeowners Policy includes: An owned camera used by the insured while on vacation in another country --- Property not covered under Coverage C includes animals, aircraft, and vehicles registered for road use. A. ships' cargo C. all-risk Scheduled Vs. Unscheduled Personal Property Coverage | Grange Insurance What is his objection to actual cash value and what, if anything, can he do about it? A. covers inherent vice. replacement cost coverage is available by endorsement, for an additional premium. A. Inherent vice What endorsement do you recommend? Each of these payouts would be subject to a deductible. Both the cemetery plot and greenhouse are located at the residence premises. The dollar amount might not adequately cover the cost of replacing your valuables, so youll need scheduled personal property coverage. HO-3 is a comprehensive policy. Damage to Property of Others coverage is provided up to a specified limit regardless of negligence -- Damage to Property of Others pays up to $1,000 regardless of whether the insured is liable or not. Property and Casualty Flashcards | Chegg.com Coverage D of a Homeowners Policy includes loss of income from an incidental business ---Coverage D does not cover loss of income from an incidental business. All of the following statements about the federal flood insurance program are true EXCEPT. Installment Sales Floater Her jeweler will reproduce the lost earring for $10,000. The agent recommends either the HO 2 Broad Form or the HO 3 Special Form. Notify adjacent neighbors of the damage and possible risk to them, Samuel keeps a gun collection at home. The following options are available to the insurer EXCEPT: Pay the total cash value of the pair of earrings prior to the loss divided by two. A. Detached private structures on the residence premises A neighbor is injured while helping the insured install a carpet --- First Aid Expenses Coverage applies to first aid to others caused by Bodily Injury covered under the policy, but does not pay for first aid to an insured. On what form is his policy written? Which of the following pays all necessary medical expenses to others incurred within 3 years of an accident that causes bodily injury? What is the ppp-value? vandalism and malicious mischief Cater pillar I nc. 1 The art world is comparing the (a) seven-year-old, (b) seven year old child prodigy to Picasso. Coverage D: Loss of Use, Coverage E: Liability 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. chapter 12 p and c course Flashcards | Quizlet D) Personal property replacement cost endorsement. While the HO 04 61-Scheduled Personal Property Endorsement provides much more coverage than an. Open perils coverage on the dwelling and broad form coverage on the personal property ---- The H0-3 provides open perils coverage on the dwelling, and Named Broad Form perils coverage on the personal property. B. Mac bought a new gas grill from a local department store. You can find out more about our use, change your default settings, and withdraw your consent at any time with effect for the future by visiting Cookies Settings, which can also be found in the footer of the site. Which of the following homeowners policies covers tenants or renters? Scheduled personal property is a supplemental insurance policy that extends coverage beyond the standard protection provided in a homeowners' insurance policy. "Homeowners Insurance Guide." She purchased the necessary lumber and it's piled in her back yard. With respect to Jack and Mary's homeowners policy, the rental property would be considered which of the following? What is relocation diffusion in human geography? Is personal property that is usually located in a secondary residence covered under Coverage C? 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. All of the following are true of a Homeowners Policy, except: A. Dwellings under construction are eligible B. A Fine Art Floater: 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. A. B. Exhibition floater Homeowners Insurance Flashcards | Quizlet A note for $3500\$ 3500$3500 was made at 8%8 \%8% per year compounded annually for 333 years. | Allstate An insurance endorsement is a change to your insurance policy, such as an addition of coverage. Which of the following Coverages is not found under Section I of the Homeowners Policy? Scheduled personal property is an additional insurance policy that can be added to your homeowners' insurance policy. However, there are limits for the coveragevalue for eachitem. The assigning of the value of the insuredproperty will vary by the insurance provider. Definition amd Coverage, Tiny House Insurance: How to Insure Your Tiny Home, What Is Umbrella Insurance Policy? What is the amount of the dividend s in arrears? Iacouva Company reported the following on the companys income statement for 2014 and 2013: a. Which of the following endorsements to the Homeowners Policy adds coverage for injury resulting from libel, slander, false arrest, defamation, invasion of privacy and other such offenses that could result in a personal liability suit? Which of the following is not an Additional Coverage on the homeowners policy? 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? She wonders what the endorsement does. reasonable repairs For more jewelry. Fire insurance covers damage and losses caused by fire and is often purchased in addition to standard homeowners insurance. B. Coverage C: Personal Property pools Tom and Ann have just bought a condominium for their residence. $1,500 for loss by theft -- Jewelry, watches, furs, precious and semiprecious stones are covered up to $1,500 for loss by theft. C. Inherent Vice A. a stated value basis. Which endorsement would have provided a better loss settlement? $100 Occurrence -- An accident, including exposure to conditions that result during the policy period in bodily injury or property damage Cookies collect information about your preferences and your devices and are used to make the site work as you expect it to, to understand how you interact with the site, and to show advertisements that are targeted to your interests. What endorsement changes Coverage C- personal property in the HO-3 from a named peril to open peril? Scheduled Personal Property Endorsement - Insuranceopedia.com A Personal Articles Floater: The peril of theft is automatically included in all homeowners policies, whether theft occurs on the insured's premises or not, The permitted incidental occupancy endorsement, Deletes exclusions in the policy pertaining to a business conducted on the resident premises You may not realize the value of what you own until your home is damaged or vandalized. HO-3 Home Insurance Policy Breakdown | Homeowners Insurance Cover Borrowed property meets the definition of contents B. Charles Munyi has over eight years of experience as a personal finance writer. He asks his insurance agent if the family cemetery plot and the small greenhouse he rents to a friend who grows and sells orchids are also covered under the policy. Under what coverage part of her homeowners policy is the lumber insured? What does the representative tell them? Items that are scheduled and insured under a scheduled personal property endorsement are covered on a . How can government use taxes to reallocate the use of resources in the economy? \text{\$25.000} & \text{2.1\\% compounded monthly} & \text{64 mo} & \text{d.}\\ Open perils coverage is available by Endorsement for scheduled items at an additional premium. 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. Which coverage applies under an Ocean Marine policy when cargo is jettisoned to save the ship? Covered up to 10% if kept at a location other than the main residence, True or False A. Bernard and Maureen own expensive jewelry, fine arts, and a rare coin collection. A. buildings \text { Average number of common shares outstanding } & 617.2 & 645.2 & 652.6 The land on which the dwelling is located --- While vacant land is included in the definition of 'insured location,' for the purposes of liability coverage, no property coverage is provided for land under the Homeowners policy. A better solution. A. golf clubs Most Personal Articles Floaters are written on: 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. Cassie notices that a Scheduled Personal Property Endorsement (HO 04 61) is attached to her homeowners policy. 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. B. ocean marine, Which peril is covered by a scheduled personal property endorsement? theft, Additional coverages found in all homeowners forms include, Debris removal If it suffered extensive damage and had to be replaced, the replacement value might substantially exceed its market value. Coverage D of a Homeowners Policy includes loss of income from an incidental business Bridget reported the theft of her Rolex watch to her insurance company. Wisconsin Office of the Commissioner of Insurance. D. Installation Floater, Tourist luggage is insured by which floater? C. 60 Renters insurance can do more than help protect your property. A. ACV Section II covers the neighbor's medical expenses and property damage losses. Scheduled personal property endorsement Crew of ships are covered by the? Charles completed the Good with Words: Writing and Editing Course through the University of Michigan. The policy details the dollar amount for the standard coverage of various categories. 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. Learn more about scheduled personal property, how it works, the pros and cons, and how to get coverage. A Personal Article Floater can cover: $26,250 ---- The Coverage B total is $25,000, and the policy allows for an additional 5% for debris removal: $25,000 + 5% or $1,250 = $26,250. For example, this endorsement wont cover property damage due to normal wear and tear, or loss caused by corrosion or rust. A scheduled personal property endorsement may be used to cover each of the following EXCEPT: A. bicycles and clothing B. decks and awnings C. birthday gifts and wedding gifts D. paintings and jewelry B. decks and awnings Sheep shipped to market are insured by: A. Inland marine insurance B. homeowner policies A. Inland marine insurance Coverage for a day care employee - Injury to any employee arising out of the day care business is not covered. A. certificates Record every valuable possession in your house and copy the serial numbers. Personal property is covered worldwide. A scheduled personal property endorsement provides adequate coverage for your valuables, but at the expense of a higher insurance premium. The HO-5 personal property coverages are insured on which basis? B. imports and exports A. broad A. The insurance company says it will replace the watch instead of making a loss payment. 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. A. barratry The dwelling on the residence premises C) Scheduled personal property endorsement. 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. They believed that they did not get enough for this property because the settlement was based on actual cash value. Loss settlement is based on the actual cash value up to the amount listed on the endorsement. (Round to the nearest cent. The following coverages are all found under Section I of the Homeowners Policy, except: Personal Injury Liability -- Section I of the Homeowners Policy contains Property coverages. A HO-3 policy provides coverage on which basis? C. A hovercraft Derek's agent tells him. C. Residence employee -- An employee of an insured whose duties are related to the maintenance or use of the residence premises D. Contractor's Equipment Floater, Inland Marine will NOT cover: D. Coverage D of a Homeowners Policy covers additional living expenses. D. Any person legally responsible for watercraft owned by an insured. 70% of the replacement cost. What do you tell her? 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. B. C) the neighbor's medical expenses. Will the definition of 'residence premises' in an HO 3 policy apply to this dwelling? PI: 3.1.1 Homeowners Policy Flashcards | Quizlet Homeowners' Endorsements- the Details Make the Difference Get home insurance quotes for scheduled personal property coverage Compare rates Of the following statements concerning Homeowners policies, which is correct? Some possessions covered by a scheduled personal property endorsement include jewelry, coin collections, postage stamps, furs, antiques, guns, fine arts, silverware, and other items whose value exceeds what your regular homeowners policy covers. B. 80% of the replacement cost. Property insurance provides financial reimbursement to the owner or renter of a structure and its contents in the event of damage or theft. lawnmowers, Bodily injury to others 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. 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. birthday gifts A. Under Coverage C of a Homeowners Policy, all of the following losses are included, except: Property of a roomer, boarder or tenant --- Property of roomers, boarders, or tenants is not covered under the policy. trees, shrubs, plants Under the unendorsed Homeowners Policy, jewelry is covered up to what amount? Scheduled Personal Property For Your Valuables | Hippo Personal Articles Floater The Scheduled Personal Property Endorsement, HO 04 61, does not define fine arts, leaving the category open for anything that does not fall into the jewelry, furs, cameras, musical. What homeowners policy form would best suit the Tuttles' needs. What coverage on her homeowners policy will pay for the necessary increase in living expenses she incurs because of her evacuation by a civil authority? What Is an Insurance Endorsement? | Allstate The amount of Molly's outstanding mortgage was $100,000 at the time her house was destroyed in an explosion. Liability arising from publication of material that violates another person's right of privacy - All are excluded under the unendorsed HO policy. How does the homeowners policy limit coverage for these types of property? The personal injury liability endorsement to a HO policy to all the following EXCEPT: A. Slander B. Liability for loss to use of another's property Caterpillar had no preferred stock outstanding. 150,000 to Carole and $75,000 each to Sandra and Lynn. Sandy and Stewart had a fire loss, and the insurance company reimbursed them for their damaged personal property. C. It covers injury to an employee, as well as attendees, arising out of day care operations All of the following are defined as insured locations under the Homeowners Policy, except: Farmland owned by the insured -- Farmland owned by the insured is not covered. What is Scheduled Personal Property Coverage? - Policygenius Renters Insurance Coverage and Policies | Allstate \hline \text { Net income } & \$ 3,695 & \$ 3,789 & \$ 5,681 \\ By purchasing a scheduled personal. C. Obligations of an insurer end when it pays damages equal to the policy limit for any one occurrence A. Which statement is true concerning Coverage D of the Homeowners Policy? George just returned from Europe with a beautiful Swiss watch valued at $10,000. Which of the following would not be eligible to purchase a Homeowners Policy? The required reserve ratio is 10 percent. The most common perils covered by an HO-1 policy include: Fire or lightning Smoke Windstorms or hail Explosion Aircraft Vehicles Vandalism Theft Few homeowners have this type of policy. fire 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. What is the act of knowingly transferring or using, without legal authority, the identification of an insured with the intent to commit illegal activity? 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. What Is an Insurance Endorsement? You tell her that by adding this endorsement the insurer agrees to pay the lowest of the following values, for most types of property insured on the endorsement, EXCEPT: Beatrice works from her home, on a part-time basis, as a hairdresser. 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. Jack and Jill are vacationing at a golf resort when a thief enters their room and steals a laptop computer, golf clubs, cash, and clothing. Find (a) the maturity value and (b) the present value of the note assuming 5%5 \%5% per year compounded semiannually. A pipe bursts in Martha's home and water damages the ceiling, walls, and floors as well as furniture and clothing. Which of the following is not covered if the insured has broad peril coverage? Most companies will require copies of either areceiptor anappraisalof the item before providing the coverage. The definition also includes a person who performs similar duties elsewhere that are not related to any business of the insured, such as a person hired to paint the insured's house, as so long as the insured doesn't own a business that paints houses. Determine the number of times interest charges are earned for 2014 and 2013. B. stamp and coin collections The Tuttles own a late-19th century Victorian home. A. cattle shipped to market When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. B. actual cash value, The least likely method of payment for loss under a Floater is: Damage caused intentionally by the insured's 10-year-old son Scheduled personal property insurance covers you for greater risks than your homeowners' insurance policy. C. reservations Installment Sales Floater Renters Insurance Coverage and Policies | Allstate Renters insurance can do more than help protect your property. A. C. Contractor's Equipment Floater Jack and Jill contact their homeowners insurer and ask the claim representative whether they are covered for this loss. Read our, Definition and Examples of Scheduled Personal Property, Pros and Cons of Scheduled Personal Property, Answers to Common Homeowners Insurance Questions, What You Need To Know About Hurricanes and Insurance Coverage. A. B. Which of the following claims would be covered by the First Aid Expenses under the Homeowners Policy? Select the person who is not considered an insured under an HO-3 policy? B. On dry pavement, the standard deviation is 16 feet. is the worlds leading manufacturer of construction and mining equipment. B. domestic shipments of goods, An insured has how many days grace period to get newly purchased fine art scheduled? Scheduled personal property insurance covers losses and damage to possessions on a replacement-cost basis. B. salespersons' samples, Marine Transportation Insurance covers: All of the following are eligible for coverage under a homeowners policy except, Are eligible for homeowners policy if the mobile home endorsement is attached. C. furs and jewelry 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? For example, a CSR could use one of the following endorsements to provide coverage for an insured's expensive jewelry: Scheduled Personal Property Endorsement (HO 04 61 05 11) or Scheduled Personal Property Endorsement (With Agreed Value Loss Settlement) (HO 04 60 05 11). B. provides all-risk coverage. 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. A. Mr. Conrad lives on the second floor of a duplex he bought. Choose the true statement concerning Homeowners Policies. Describe five common fees assessed on credit card accounts and how they can be avoided. A. Home-Based Business Insurance: What It Is, Costs, and Companies, Home Daycare Insurance: What It Is, Costs, and Companies. What definition in the homeowners policy describes Beatrice's activities as a hairdresser? How big are the banks excess reserves? (The home cannot contain more than 4 families), are also eligible for homeowners policy if the named insured is to be the occupant, Which of the following is the correct formula used to calculate ACV, Loss sustained while the injured party is on an insured location with any insured's permission is covered under, The insurance limit for coverage B-other structures is, 10% of Coverage A (Except for HO-4 and HO-6), All of the homeowners forms provide identical. Per person - Medical payments coverage for all types of policies pays on a 'per person' limit. Which of the following is considered personal property not covered by the homeowners policy? Personal Effects Floater, The standard deductible under a Scheduled Personal Property Endorsement is: A standard homeowners policy typically includes coverage for: Homeowners policies typically pay a percentage of your dwelling coverage limit to repair or replace your clothes, furniture, and other personal property. The stone could be replaced for $1,700. Types of Homeowners Insurance (Policy Forms) | Credible Chloe moved from a spacious home to a smaller condo unit and stored some of her furniture in an off-premises storage unit. A standard homeowners insurance policy covers personal items up to a specific dollar limit, beyond which an insurance company wont compensate you in the event of a loss. Home Replacement Cost vs Actual Cash Value | Allstate Which of the following is not an option available to Laura? Bicycle floater 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. Personal inland marine coverage eliminates many of the various person-al property issues on the homeowners policy forms (and endorsements) and provides a straightforward coverage option. Scheduled personal property is a supplemental insurance policy that extendscoveragebeyond the standard protection provided in a homeowners'insurance policy. C. $250 A model airplane - A model or hobby aircraft is covered unless it is designed to carry people or cargo. He has a homeowners policy and wonders if it covers the business equipment. Chapter 4: Homeowners Flashcards | Quizlet Including debris removal, what is the maximum an HO-3 policy with a Coverage A amount of $250,000 will pay If a detached garage burns down? Under an HO-2 policy with a coverage limit of $50,000 on the dwelling, what is the amount of personal property coverage that would be available? B. Payment of the actual cash value or a proportional share of the loss, whichever is greater, Averagenumberofcommonsharesoutstanding, Fundamentals of Financial Management, Concise Edition, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, CHM 101 Exam #3 Chapter 11 Lecture Notes From, Chapter 6 - Addiction Across the Life Span.