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Losses to the dwelling are paid replacement cost and losses to personal property are paid at actual cash value. 45 B) Scheduled personal property endorsement. What is the difference in the weekly salaries of these two jobs? Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. They would not recover their loss in full because they were not insured to value. D) An insured, an agent, an insurer and a claim. no, because there are more than 4 units in the dwelling. no, because damage to trees, shrubs, plants, or lawns is not covered if caused by a windstorm. This basic homeowners insurance policy only covers losses caused by a peril named in the policy. furniture 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. With respect to Jack and Mary's homeowners policy, the rental property would be considered which of the following? 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. Coverage F limits are subject to a deductible - Section II coverages are not subject to a deductible. An insured has how many days grace period to get most Floater items scheduled? B) cost to have the dog put to sleep. C. Residence employee -- An employee of an insured whose duties are related to the maintenance or use of the residence premises Iacouva Company reported the following on the companys income statement for 2014 and 2013: a. Which coverage applies under an Ocean Marine policy when cargo is jettisoned to save the ship? 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. 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. B. inherent vice D. Camera floater, Which floater may be used to cover office equipment and furniture? Credit cards, All of the following properties can be insured under an unendorsed homeowners policy except Which of the standard homeowners policies includes malicious mischief as a named peril? D. leased buildings, Each of the following is a Personal Floater EXCEPT: Debris removal Which of the following would not be covered under Coverage B ' Other Structures in a homeowners policy? Personal property coverage is designed to help protect your belongings. \text{\$25.000} & \text{2.1\\% compounded monthly} & \text{64 mo} & \text{d.}\\ What are the implications of your statistical conclusions in terms of driving safety recommendations? 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? A. ships' cargo Residence Employee -- A Residence Employee might be either an inside domestic servant or an outside premise maintenance employee. Mrs. Oates doesn't want depreciation applied to any claims she might submit under her homeowners policy for loss or damage to her belongings. Learn about what is typically covered in a renters policy and additional coverages you may want to consider. B. Scheduled personal property covers additional risks that your standard homeowners policy doesnt cover. Scheduled personal property is an endorsement you add to your homeowners insurance to provide extra coverage for your valuables. Which of the following homeowners policies covers tenants or renters? For example,traditionalcoverage may cover the loss from a fire or theft. Understanding Scheduled Personal Property, How Scheduled Personal Property Coverage Works, Property Insurance: Definition and How Coverage Works, What Is Personal Liability Insurance? Definition and If You Need It, Fire Insurance: Definition, Elements, How It Works, and Example, Rider: Definition, How Riders Work, Types, Cost, and Example, Personal Property: Definition, Examples, and Role in Insurance. 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. What is Scheduled Personal Property? A. affective events theory Question 54 of 63 coverage for personal property located in a self-storage facility is limited to 10% of Coverage C or $1,000'whichever is greater. On a standard homeowners policy, coverage divides into categories including. fire dept service charge For more jewelry. }\\ Open perils coverage is available by Endorsement for scheduled items at an additional premium. Which of the following would be covered under the Damage to Property of Others additional coverage of the Homeowners Policy? What endorsement changes Coverage C- personal property in the HO-3 from a named peril to open peril? 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. 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. 80% of the replacement cost. Borrowed property meets the definition of contents --- Coverage C covers property owned or used by the insured, including property owned by others. 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. Policyholders receive a full copy of their policy, which usually runs at least 20 pages. What is the ppp-value? You may not realize the value of what you own until your home is damaged or vandalized. An insurance endorsement is a change to your insurance policy, such as an addition of coverage. D. The Damage to Property of Others duplicates coverage that is included in Section I. B) Special property limits. What homeowners form was designed to provide coverage for older homes because their replacement values exceed their market values by a significant amount? replacement cost coverage is available by endorsement, for an additional premium. Of the following statements concerning Homeowners policies, which is correct? B. 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. All of the following are true, except: Derek's agent tells him. 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 friend who is renting a bedroom in the insured's house since it is only three blocks away from work - Since the friend is a tenant, not a relative or a person in the care of the insured, he/she would not be an insured under the policy. Perform regular appraisalsat least annuallyof items insured under scheduled personal property endorsement to ensure you have adequate coverage in case of loss. 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? 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 Standard policies do not cover all types of property and set limitations on the value amount the insurance company will pay for specific losses. Which of the following would not be an insured under Section II of the Homeowners Policy? Bart keeps a dog that is known in the neighborhood to be vicious. B. ocean marine, Which peril is covered by a scheduled personal property endorsement? B. However, which type of property is covered? subrogate the claim to seek recovery from the manufacturer. claim expenses The assigning of the value of the insuredproperty will vary by the insurance provider. It extends Section II coverages to the insured's home day care business --- The Home Day Care Coverage Endorsement extends the coverage of the Homeowners Section II to the Day Care Business. Installment Sales Floater 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} 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? A. a duplex that is owner-occupied A. Theft of silverware is covered up to $2,500 C. Money is covered up to $500 per occurrence D. The Scheduled Personal Property Endorsement provides open perils coverage To earn some extra money, Mrs. Holden babysits her next door neighbor's children on a regular basis in her own home. Personal belongings coverage includes items stored off-premisesthis means you are covered anywhere in the world. Functional Replacement Value - Functional replacement cost is the cost to replace the damaged property with property that performs the same function, but is not like-kind or quality. The factors involved in location decisions include. D. jewelry, Inland Marine covers: C. furs and jewelry Record every valuable possession in your house and copy the serial numbers. The Personal Property Replacement Cost Endorsement may be added to cover the contents on a replacement cost basis B. You also have up to $500 of coverage for unauthorized use of your credit cards. Inherent vice \text{\$5.000} & \text{1.1\\% compounded quarterly} & \text{8 yr} & \text{c.}\\ Under an HO-3 policy, what is the coinsurance requirement? Choose the true statement concerning Homeowners Policies. Fire insurance covers damage and losses caused by fire and is often purchased in addition to standard homeowners insurance. Which of the following is not an Additional Coverage on the homeowners policy? Property damage coverage included damage from insects, weathering, and wear and tear. Scheduled personal property is an additional insurance policy that can be added to your homeowners' insurance policy. On what form is his policy written? Bridget reported the theft of her Rolex watch to her insurance company. 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 . 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. 50% --- The basic amount of Coverage C insurance is 50% of the Coverage A Limit. The earthquake endorsement is attached to Paulina's homeowners policy. These duties include household and domestic services, such as those of a gardener or nanny. 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. Also known as scheduled personal property coverage, this is a way to raise the coverage limits of specific high-value items, such as valuable family heirlooms, that you own. B) $500.00 Personal Articles Floater, Inland Marine policies are called? detached shed from which a tool repair business is operated. D. Damage to property owned by the insured's tenant. Scheduled personal property is a supplemental insurance policy that extendscoveragebeyond the standard protection provided in a homeowners'insurance policy. \begin{matrix} D. 90. C. golf clubs civil commotion is the worlds leading manufacturer of construction and mining equipment. Scheduled personal property coverage is an endorsement you can add to your home insurance. Wisconsin Office of the Commissioner of Insurance. Mr. Conrad lives on the second floor of a duplex he bought. C. stated value 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. 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. Coverage D of a Homeowners Policy includes loss of income from an incidental business What Coverage C special limit of liability applies to the 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? (Round to the nearest cent. For a homeowners policy, which one of the following statements about insuring personal property normally kept at a residence other than the residence premises is CORRECT? Collapse (Is included in HO-2, 3, 4, 5, and 6, Which of the following coverages applies to personal property owned or used by an insured and is included in all homeowners policies. 70% of the replacement cost. B. loading bridges, Which Personal Articles Floater item is insured on a stated value basis? C. The dwelling on the insured premises, plus any structures that are attached to the dwelling 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? riot ), $74,850.0035,798.00\begin{array}{r r} Liability coverages are set forth in Section II of the Policy. B. Covered up to 10% if kept at a location other than the main residence, True or False B. Structures that are set apart from the dwelling by a clear space Most Personal Articles Floaters are written on: Any residents of the same household are insured as long as, Permitted Incidental Occupancies Endorsement. A. The insured's tenant - Roomers or boarders are not considered insureds, and would need to purchase their own liability policies. A. A. covers inherent vice. D. warehouses, Loading docks and cattle shipped to market are insured by what area of insurance? A. C. A hovercraft A. jewelry salesperson's sample case A. certificates Scheduled personal property endorsement lists each insured item, a description of the item, its insured value and highlights the excluded perils. A. Describe the procedure and comment on its fairness. The dwelling must be the principal residence of the insured -- The underlying concept of the Homeowners Policy is that owner-occupied property has, in most cases, better care and maintenance than tenant-occupied property and is therefore eligible for package insurance and discounted rates. Personal Injury Endorsement - The Personal Injury Endorsement provides coverage for injuries to others that are not of a physical nature. Which of the following is not true concerning Section II of the Homeowners Policy? 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. D) Personal property replacement cost endorsement. Accessed Oct. 15, 2021. B. Insects and vermin He wrote about insurance, banking, budgeting, products, services, and more for The Balance and Investopedia. A. commercial buildings C. Payment under Damage to Property of Others is made regardless of negligence D) damage to the neighbor's clothing. The extent to which a person feels enthusiastic, active and alert is known as ________. Each of these payouts would be subject to a deductible. 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. How would a covered loss to their home be settled or adjusted? Izzy agrees to rent the room but is concerned about the valuable electronic equipment he owns. On wet pavement, the standard deviation of stopping distances is 32 feet. Losses to dwellings and other structures are paid at replacement cost. A. inland marine Accessed Oct. 15, 2021. storage shed. Vandalism and malicious mischief losses are excluded under the Homeowners Policy: 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. The homeowners policy contains which of the following types of insurance coverage? Definition amd Coverage, Tiny House Insurance: How to Insure Your Tiny Home, What Is Umbrella Insurance Policy? C. Home schooling is permitted under a Homeowners Policy Is personal property that is usually located in a secondary residence covered under Coverage C? Bicycle floater Water Damage (Excluded from all homeowners policies), Supplementary payments of the homeowners policy section 2 are paid, Which of the following losses would be 100% covered under Coverage C-personal property, A $1,250 fur coat that was stolen from the premises, Material misrepresentation by the insured requires & Substantial change in risk insured requires. for landlord . Will the definition of 'residence premises' in an HO 3 policy apply to this dwelling? A. Under the HO-4 and HO-6, personal property is covered on which basis? \end{array} Policyholders are not subject to a deductible on scheduled items. detached garages By purchasing a scheduled personal property policy, owners can ensure full coverage of expensive items, such as jewelry, in the event of a claim. Which of the following is not an option available to Laura? The right of privacy was not acknowledged as a separate right until the 1960s. 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. Coverage D of a Homeowners Policy includes loss of income from an incidental business $0 Her agent recommends a. In addition, it provides personal liability coverage. D . The insurer can do this because losses to personal property are settled on what basis? Scheduled Vs. Unscheduled Personal Property Coverage | Grange Insurance Association Grange Insurance Association's (GIA) Annual Policyholder Meeting will be held on Monday, March 20, at 10:00 a.m. Jack and Jill contact their homeowners insurer and ask the claim representative whether they are covered for this loss. 80% --- If Coverage A is less than 80% at the time of a loss to the dwelling, a penalty will be applied to the partial dwelling loss claim payment. C. The insured's tenant 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. They ask their agent if there is sufficient coverage under their standard homeowners policy for these high value items, and, if not, what is the best way to insure them. Personal property is covered worldwide. B. fine art The land on which the dwelling is located B. She purchased the necessary lumber and it's piled in her back yard. Personal Articles Floater An unscheduled property floater is an addition to an existing property insurance policy to cover items that have not been individually itemized or valued. aircraft A. warehouses B. Caterpillar had no preferred stock outstanding. What Does Homeowners Insurance Cover and Not Cover? Physicians and Surgeons Floater The policy details the dollar amount for the standard coverage of various categories. & \$74,850.00\\ 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. A rider is an insurance policy provision that adds benefits to or amends the coverage or terms of a basic insurance policy. How much money would she have to earn each year before it was considered a business activity under a homeowners policy? 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. - any other residents who are under 21 and in the care of any member of the insured's family C. $250 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. She wonders what the endorsement does. Physicians and Surgeons Floater 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. gun collections Liability arising from publication of material that violates another person's right of privacy - All are excluded under the unendorsed HO policy. An endorsement can settle personal property losses on a replacement cost basis. His insurance agent suggests that he add which endorsement to adequately cover his watch? Yvette's diamond ring is listed in the schedule of the Scheduled Personal Property Endorsement (HO 04 61) attached to her homeowners policy. What homeowners form would be most appropriate for their insurance needs? The coverage for Damage to Property of Others pays the replacement cost of the property damaged up to $1,000 per occurrence 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 may be increased beyond the $2,500 additional coverage (10.) Marc and Nancy insure their home for $300,000 with a homeowners policy. The Home Day Care endorsement does not provide which of the following? Under Coverage B -- Other Structures of the homeowners policy, which of the following structures are covered? Scheduled personal property is a supplemental insurance policy that extends coverage beyond the standard protection provided in a homeowners' insurance policy. The coverage for Damage to Property of Others excludes property that is covered in Section I