Bridget reported the theft of her Rolex watch to her insurance company. Scheduled personal property coverage provides three specificadvantages that extend beyond the benefits of a standard insurance policy: By clicking Accept All Cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. 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. The art world is comparing the (a) seven-year-old, (b) seven year old child prodigy to Picasso. Charles Munyi has over eight years of experience as a personal finance writer. George is a sales representative and keeps much of his business equipment and merchandise in his home and in his car. Retrieve copies of either the receipts or appraisals of each item. This year, $500,000\$ 500,000$500,000 is to be distributed. Learn about several types of riders that may be available on a home insurance policy. Tom and Ann have just bought a condominium for their residence. C. Fine art floater Other named peril losses are covered up to the Coverage C limit. C. Payment under Damage to Property of Others is made regardless of negligence Section II is the same in all Homeowners Forms - Since the liability exposures of individuals and families have little to do with their mode of residence, Section II is the same in all Homeowners Policy forms. B. a mobile home that is owner-occupied D. Coverage D of a Homeowners Policy covers additional living expenses. Which of the following property is covered under the Homeowners Policy? A) Special limits of liability. explosion Liability for loss to use of another's property 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? Will the definition of 'residence premises' in an HO 3 policy apply to this dwelling? Natalie offers to rent a room in her home to a local college student. A windstorm damages Tyrone and Belinda's garage and screened-in porch. Charles completed the Good with Words: Writing and Editing Course through the University of Michigan. Mr. and Mrs. Nguyen submitted a claim under their unendorsed homeowners policy for damage to their swimming pool. Protection extends to additional types of loss above that covered by the homeowner's policy. Which of the following statements BEST describes the homeowners endorsements that are used to provide coverage for fungi, wet or dry rot, and bacteria? Which of the following homeowners policies covers tenants or renters? On dry pavement, the standard deviation is 16 feet. 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. A. They are concerned about the extent of homeowners coverage for loss to the trees, shrubs, plants, or lawns on the premises. Determine the earnings per share for Years 13. When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. A better solution. They believed that they did not get enough for this property because the settlement was based on actual cash value. Some companies limit the amount to 10 percent of the amount of insurance you have for your possessions. Advertisement However, there are still a couple of issues to note when using a form such as the HO 04 61 (05 11)Scheduled Personal Property Endorsement. The replacement value of the home is $450,000. Some companies may even cover your personal property if damage occurs when you are away from home, but there may be a limit on the dollar amount of coverage. 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. Borrowed property meets the definition of contents A. a duplex that is owner-occupied The Home Day Care endorsement does not provide which of the following? \hline \text { Net income } & \$ 3,695 & \$ 3,789 & \$ 5,681 \\ Coverage for business property on the premises is limited to $2,500; away from the premises the limit is $1,500. How much money would she have to earn each year before it was considered a business activity under a homeowners policy? C) the neighbor's medical expenses. Kevin came home from work to find that his house had been vandalized. Renters insurance can do more than help protect your property. B. Insects and vermin Its only after a loss that many people realize they should have purchased replacement cost coverage or increased their coverage amounts. Under the HO-4 and HO-6, personal property is covered on which basis? The insured's tenant -- Tenants must acquire their own insurance to cover their personal property and liability. trees, shrubs, plants B. jettison, Floaters provide which type of coverage: C. Home schooling is permitted under a Homeowners Policy The policy could extend 50% personal property coverage, providing a max claims payout of $125,000. B. B. B. imports and exports Under the unendorsed Homeowners Policy, jewelry is covered up to what amount? A. a warehouse detached shed from which a tool repair business is operated. Covers people who conduct business at home and have a person injured on their property, The HO-3 provides _____ peril coverage on dwelling and _____ peril coverage on personal property, Standard exclusions in the homeowners forms, Earth movement A. commercial buildings His insurance agent suggests that he add which endorsement to adequately cover his watch? property removed, Section II provides coverage to third parties including, first aid provided by the insure What endorsement changes Coverage C- personal property in the HO-3 from a named peril to open peril? Costs the insured was already paying before incurring the loss are not covered. The following are all additional coverages under a Homeowners Policy, except: Governmental Action - Governmental action is an exclusion; not an additional coverage. 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. Which of the standard homeowners policies includes malicious mischief as a named peril? Her jeweler will reproduce the lost earring for $10,000. 13 Q Describe the procedure and comment on its fairness. HO-3 is a comprehensive policy. Policyholders are not subject to a deductible on scheduled items. Insurers calculate actual cash value by taking the replacement cost and accounting for depreciation of the item. keep the $10,000 loss payment and the recovered property. Premiums for floaters depend on the types of items you've added, how much the items are worth and the area where you reside. What limitations, if any, apply to cash and securities? - any other residents who are under 21 and in the care of any member of the insured's family The scheduled personal property endorsement provides coverage for specific items of property, such as a watch, that exceeds the internal limit on the policy. A. cattle shipped to market The coverage will pay for any increase in living expenses required to maintain the insured's normal standard of living - Coverage D is intended to pay only the increase in the insured's normal living expenses occasioned by the loss. "Scheduled Personal Articles Insurance Coverage." These items are covered for losses caused by all the perils included in your policy such as fire, windstorm, theft and vandalism. Fire insurance covers damage and losses caused by fire and is often purchased in addition to standard homeowners insurance. 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. A. A. covers inherent vice. A. breakage Insurer investigation expenses are in addition to the limits stated in Coverage E Which statement is true concerning Section II of a Homeowners Policy? The dwelling on the insured premises, plus any structures that are attached to the dwelling --Coverage A covers the dwelling and attached structures. By purchasing a scheduled personal. Liability coverages are set forth in Section II of the Policy. A. Complete the table to find the single deposit investment amounts. Of the following statements concerning Homeowners policies, which is correct? motorized wheelchairs Cater pillar I nc. B. A rare and expensive gun was stolen from it. 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 Under what section of her homeowners policy is the pool insured, if at all? Property damage of another caused by the insured, The comprehensive HO-5 policy is a _____ perils contract on personal property, structures on the premises set apart from the dwelling by a clear space, What is not covered by coverage B - other structures, - does not cover other structures rented to others for other than a use as a private garage Izzy agrees to rent the room but is concerned about the valuable electronic equipment he owns. Which of the following is not true concerning Section II of the Homeowners Policy? C. Damage to property owned by the insured With respect to Jack and Mary's homeowners policy, the rental property would be considered which of the following? 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. Laura's insurer paid $10,000 claim to reproduce the missing earring. A. buildings Wisconsin Office of the Commissioner of Insurance. Jones act Which method of Lawson valuation is contrary to the basic concept of indemnity? Your clothing, appliances, furniture, and jewelry are all treated as personal property. C. positive state affect Coverage B: Other Structures The markings on the door did not permanently damage it but the door required cleaning and minor repair work. A. Kevin is looking for a job as a piano technician. B. Dwellings under construction are covered for theft Scheduled personal property goes beyondthe coverage offered instandard homeowners' policies. One day the dog attacks a neighbor while she is working in her own yard. B. Coverage D: Loss of Use, Coverage E: Liability Learn more about scheduled personal property, how it works, the pros and cons, and how to get coverage. B. What endorsement do you recommend? Which statement is true concerning Coverage D of the Homeowners Policy? Which property would be settled for its actual cash value even if the Personal Property Replacement Cost Loss Settlement Endorsement is attached to the HO-3 policy? B) A duty to act, a branch of the duty, a resulting injury, a trail lawyer and a judge. Theft from a dwelling under construction prior to its occupancy Debris removal A Personal Article Floater can cover: Each insurance company will value your personal property differently. 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. 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. C. It covers injury to an employee, as well as attendees, arising out of day care operations Scheduled personal property coverage is an endorsement you can add to your home insurance. This provides coverage for specific items of property that exceeds the internal limit on the policy, Loss settlement is based on the ____ ____ ____ up to the amount listed on the endorsement. 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 What homeowners form was designed to provide coverage for older homes because their replacement values exceed their market values by a significant amount? 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. A. Scheduled Personal Articles Insurance Coverage, Other structures that are not attached to your house, including fences and storage sheds, Additional living expenses if you move out of your house (loss of use coverage), Medical bills for someone injured on your property. Coverage is provided to property of boarders not related to the insured Which homeowners insurance form is appropriate for Marilyn and Dan? D. outboard motors and fishing tackle, Ocean Marine Insurance covers: subrogate the claim to seek recovery from the manufacturer. A Homeowners Policy will not cover theft of a boat away from premises 7 Q An insured's home is covered by a DP-3. D. The Damage to Property of Others duplicates coverage that is included in Section I. Damage to Property of Others coverage is provided up to a specified limit regardless of negligence 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? \begin{matrix} Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Mrs. Zabinski's homeowners policy is written on a form HO-6, Unit-Owners Form. Learn how coverage works. A. fur coats The Damage to Property of Others duplicates coverage that is included in Section I ---- The Damage to Property of Others Additional Coverage supplements the Property Damage Liability Coverage by providing limited Coverage for damage, caused by the insured, regardless of negligence. A note for $3500\$ 3500$3500 was made at 8%8 \%8% per year compounded annually for 333 years. Which of the following is not an Additional Coverage on the homeowners policy? B. B. gun collections for landlord . no, because damage to trees, shrubs, plants, or lawns is not covered if caused by a windstorm. 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. 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. 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 C) Scheduled personal property endorsement. However, he worries that loss to his personal property will be adjusted on an actual cash value basis. In contrast, a traditional homeowners policy covers the property on an actual cash value basis. Scheduled personal property works in two ways: increasing policy limits to cover more expensive items and protecting these items from a more significant number of . However, which type of property is covered? | Allstate An additional insurance coverage, known as scheduled personal property, can help provide greater protection for some of your most valued belongings. B. D. provides named peril coverage. Damage caused intentionally by the insured's 10-year-old son ----Intentional damage by a child under age 13 is covered. Scheduled personal property endorsement Crew of ships are covered by the? Homeowners policy endorsement that covers the insured's business activities conducted on the residence premises. A. warehouses A. non-owned vehicles D. Private structures owned by the insured at other locations. A commercial bank has $100 million in checkable-deposit liabilities and$12 million in actual reserves. Damage to these items is not covered if caused by. C. An attached garage C. Borrowed property meets the definition of contents C. Vermin In addition, Birinyi Associates identified Caterpillar as one of the top five companies to repurchase their own shares in a recent year.12 Three recent years of earnings and average common shares outstanding data for Caterpillar are as follows (in millions): Year3Year2Year1Netincome$3,695$3,789$5,681Averagenumberofcommonsharesoutstanding617.2645.2652.6\begin{array}{lrrr} Which of the following would not be included in the meaning of 'insured' in a homeowners policy? Her agent recommends a. All of the following are true, except: Take pictures of all items and receipts, and send them to your insurer. People with collections that are valued at more than the maximum coverage amount should consider supplementalscheduled property coverage. Losses to dwellings and other structures are paid at replacement cost. Question 54 of 63 Eloise installed an in-ground swimming pool in the back yard of her home. An insurer has this option, because Bridget's homeowners policy has a repair or replace option, Derek insures his home on an HO 3 policy. B. An insured has a personal property replacement cost endorsement under her homeowners policy. A. You can add this endorsement to either a schedule or blanket farm personal property insurance plan to give you additional coverage from $5,000 to $100,000. Invasion of privacy C. False Arrest D. A third party breaks a leg when the insured knocks him down . As their agent, which homeowners coverage form should you offer them? A rider is an insurance policy provision that adds benefits to or amends the coverage or terms of a basic insurance policy. Notify adjacent neighbors of the damage and possible risk to them, Samuel keeps a gun collection at home. The property section of the homeowners policy excludes coverage for certain types of property. Covered up to 10% if kept at a location other than the main residence, True or False A. A. The dwelling and other structures (Coverages A and B) are written on an open perils basis -- The HO-3 (Special Form) provides the broadest coverage available on structures: open perils (or all-risk) coverage. You also have up to $500 of coverage for unauthorized use of your credit cards. 80% of the replacement cost. B. basic An unscheduled property floater is an addition to an existing property insurance policy to cover items that have not been individually itemized or valued. A HO-3 policy provides coverage on which basis? 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. Texas Department of Insurance. They want to buy insurance to cover their personal property and protect them against liability claims from third parties. C) It is covered for up to 10% of the coverage C limit. Round to one decimal place. At a .05 level of significance, do the sample data justify the conclusion that the variance in stopping distances on wet pavement is greater than the variance in stopping distances on dry pavement? Coverage A under the Homeowners Policy includes coverage for which of the following? all of the following are special personal property limits under a homeowners policy EXCEPT: a. Albert's homeowners policy provides open perils coverage on his home and named perils coverage on his personal property. C. The dwelling on the insured premises, plus any structures that are attached to the dwelling Standard policies do not cover all types of property and set limitations on the value amount the insurance company will pay for specific losses. D. Any person legally responsible for watercraft owned by an insured. Any residents of the same household are insured as long as, Permitted Incidental Occupancies Endorsement. C. a home under construction that the owner intends to occupy A floater can be used to insure each of the following except: Personal Effects, Inland Marine policy losses are usually calculated with which method of valuation: The insured's tenant - Roomers or boarders are not considered insureds, and would need to purchase their own liability policies. The coverage limit for jewelry is $10,000 (no per-item limit) and is subject to the policy deductible (the amount you'll have to pay before insurance coverage kicks in). C. Home schooling is covered under a Homeowners Policy D) Personal property replacement cost endorsement. D. Lumber in the insured's yard to be used to build a deck off the kitchen. Commercial floaters cover: Are Izzy's personal belongings, including his electronic equipment, insured under Natalie's homeowners policy? Which of the following would be covered under the Damage to Property of Others additional coverage of the Homeowners Policy? C. Residence employee -- An employee of an insured whose duties are related to the maintenance or use of the residence premises claim expenses For more jewelry. Which would NOT purchase a bailee's floater? You may need to purchase a scheduled personal property endorsement if the value of your personal items exceeds the limit on your personal property insurance policy. B. negative state affect Round to the nearest dollar. While the HO 04 61-Scheduled Personal Property Endorsement provides much more coverage than an. Ocean marine floaters cover each of these EXCEPT: A scheduled personal property endorsement may be used to cover each of the following EXCEPT: Inland Marine covers each of the following EXCEPT: Molly has a Homeowners Policy with a $2,000 limit on theft of jewelry. All of the following statements is correct about a Homeowners Policy, except: A. B) $500.00 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. The Tuttles own a late-19th century Victorian home. B. 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. The extent to which a person feels enthusiastic, active and alert is known as ________. Property damage arising out of the racing of sailing vessels - The watercraft liability exclusion for racing does not apply to sailing vessels. Scheduled personal property is optional coverage you can add to your standard homeowners insurance policy to cover more risks and increase coverage limits on some high-value items. Property damage coverage included damage from insects, weathering, and wear and tear. A model airplane She wonders what the endorsement does. . A. An insurer may not be sued unless the insured has fully complied with the terms of the homeowners policy and the suit is brought within how many years of the loss date? Per person -- Medical payments coverage for all types of policies pays on a 'per person' limit, When the property has been vacant for 60 consecutive days -- Since vacant property possesses a higher susceptibility to being vandalized, the policy excludes vandalism coverage when insured homes are vacant for 60 days or longer. It may provide protection in the event of a covered loss, such as theft or fire. If it suffered extensive damage and had to be replaced, the replacement value might substantially exceed its market value. In what type of home does Mrs. Zabinski live? A Fine Art Floater: It offers "open perils" protection for your house and detached structures like garages, sheds, fences. Bernard and Maureen own expensive jewelry, fine arts, and a rare coin collection. 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. On what form is his policy written? Inherent vice 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. If an expensive painting and an antique chair are stolen from the insured's home, what will the insured receive on the claim under that endorsement? What is it? 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. Scheduled personal propertyalso called an endorsement, floater or rideris an optional coverage to your homeowners insurance policy (or a renters or condo policy) that provides more. She resides in one unit, her parents in another unit, and each of her three siblings lives in their own unit. Bart keeps a dog that is known in the neighborhood to be vicious. lawnmowers, Bodily injury to others Mrs. Delaney hired a contractor to build a deck on the back of her house. The diamond fell out of its setting and was lost. Replacement cost The bankruptcy provision found in the personal part auto policy states that bankruptcy of the insured? C. Obligations of an insurer end when it pays damages equal to the policy limit for any one occurrence What is Scheduled Personal Property? What homeowners policy form would best suit the Tuttles' needs. 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? Loss settlement is based on the actual cash value up to the amount listed on the endorsement. B) cost to have the dog put to sleep. Scheduled personal property is a supplemental insurance policy that extendscoveragebeyond the standard protection provided in a homeowners'insurance policy. Which statement is true concerning Section II of a Homeowners Policy? 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. D. Camera floater, Which floater may be used to cover office equipment and furniture? All of the following definitions are true of a Homeowners Policy, except: Choose the false statement regarding the coverage of property under a Homeowners Policy. Which of the following is false in regard to the Home Day Care endorsement? All of the following are true of a Homeowners Policy, except: A. Dwellings under construction are eligible B. Learn about the differences between replacement cost and actual cash value on a homeowners insurance policy.
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