Term
| What type of insureds does the HO-3 policy cover? |
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Definition
Owner occupants One to four family dwellings used as a residence by the named insured. Dwelling may be purchased under a long-term installment contract, without legal title to property. |
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Term
| Section I - Property coverages is made up of the following four parts: |
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Definition
Property coverages. Perils insured against Exclusions Conditions |
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Term
Four items included in Section II (Liability Section) of the HO-3? |
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Definition
Liability Coverages Exclusions Additional Coverages Conditions |
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Term
| What 8 topics are included on the declaration page that is attached to the HO-3? |
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Definition
Who is the policyholder? Where is their residence? Coverage limits. What is the premium? What is the Section I (property section) deductible? Effective data of the policy. What forms and endorsements apply to the policy? Who is the mortgage holder? |
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Term
| Tell me about ambigous language in an insurance policy? |
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Definition
| Any ambiguity is interpreted in favor of the insured. |
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Term
| What are the characteristics of the "residence premise"? |
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Definition
One to four family dwelling where named insured resides. Part of any other building where the named insured resides. Other sturctures and grounds at that location. |
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Term
| The insured location has all the characteristics of the residence premise, plus six other characteristics, which are? |
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Definition
1. An unlisted residence purchased by the named. 2. Non-ownded residence wherein temporarily residing by any insured (hotel room). 3. Vacant land, owned or rented by any insured. 4. Insured's land where 1 to 4 family residence is being built. 5. Individual or family cemetery plots. 6. Any premise occassionally rented by insured (reception hall). |
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Term
| What four coverages are under section I (property section) of the HO-3. |
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Definition
Coverage A - Dwelling. Coverage B. - Other structures. Coverage C. - Personal Property. Coverage D. - Loss of use. |
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Term
| Characteristics of Setion I, coverage A, Dwelling? |
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Definition
Value of land is NOT included. Limit based on cost to replace the dwelling at the same location. |
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Term
Characteristics of Part B (other structures) of Section I of HO-3 (Property Coverages). |
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Definition
Not attached & seperated by clear space. Attachment by fence or wire does not make it an attachment. Coverage for "other stuctures" is automactically included under HO-3. Coverage limit is 10% of coverage A. So if A is $200k, other structures is an additional $20k |
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Term
Part B of Section I (other structures) has three exclusions, which are: |
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Definition
1. Coverted garage rented to non-resident. 2. Running a business from structure if business has > $2k in 12 months. 3. Used to store business property is okay, but not if it's gasous fuel. |
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Term
| Characteristics of Part C (Personal Property) of Section I of the the HO-3 are? |
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Definition
Policy holers property anywhere in the world. Friend's furniture in attic covered if named insured requests so. Covers personal property at rented beach house. Standard limit is 50% of A (in addition to). Then 10% of that for property at a secondary residence (dorm room) or self-storage warehouse. 50% limit applies to both new and sold home in transition. |
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Term
Property not covered under HO-3 are: |
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Definition
Insured elsewhere. Animals Cars, aircraft, Tenant's property Rented furnishings (furnished apartment) Business data Credit cards or funds transfer cards |
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Term
| Characteristics of HO-3 Coverage D (Loss of Use) |
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Definition
Damaged too badly to live in. Damaged caused by insured peril. Coverage limit is 30% of Coverage A. Covers 'additional' living expense. Covers 'fair rental value' even if vacant, now. Covers loss of use due to civil authority. |
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Term
| Additional coverages under an HO-3 policy? |
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Definition
1. Debris removal (included in limits for Parts A, B, & C) + 5% if those limits are exhausted. 2. Reasonable repairs 3. Trees, shrubs 4. Fire dept 5. Cost of loss assessment. 6. Ordinance or law (10% limit, covered peril) |
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Term
Example of inherent vice. |
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Definition
Metal tends to rust. Types of deterioration that is a characteristic of a material. |
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Term
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Definition
Changes coverage C (personal property) from named peril to 'special form coverage'. Fire/lightening Windstorm or hail Explosion Riot Aircraft Vehicles. (not your auto, stuff in back or bikes) |
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Term
| Perils excluded under Section I of HO-3 are: |
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Definition
Ordinance of Law Earth Movement Water damage; flood, sewer backup. Loss of power away from residence. Neglect War and Nuclear Intentional loss, Gov't action, Weather caused mudslide Acts or decisions (zoning over landfill that later caves in) |
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Term
Conditions under Section I of HO-3 are: CARD 1 of 2 |
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Definition
Insurable interest - those suffering financial loss Limit of liability - policy pays up to its limits regardless of how many insurable interests exist. Your Duties after a loss Loss Settlement Loss to a Pair or Set Appraisal |
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Term
Conditions under Section I of HO-3 are: Card 2 of 2 |
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Definition
Other Insurance and service agreement Suit against us Our option Loss payment abandonment of property mortgage clause No benefit to bailee Nuclear hazard, recovered property, volcanic eruption Policy period, concealment or fraud and loss payable clause |
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