Exam 13: Multirisk Management Contracts: Homeowners

Your four-year-old large-screen television might cost $700 to replace today.If it has depreciated 10 percent per year, the insurer will pay you $420 in the event it is stolen or destroyed this year.You will have to find another $280 if you want to replace it.Identify the endorsement that can protect you from this unfavorable event.

_____ is a federal program that provides flood insurance to flood-prone communities.

_____ coverage protects you from losses sustained if the premises cannot be lived in as a result of a direct loss to either the premises or neighboring premises.

Identify the homeowners Section II condition that clarifies that the maximum coverage available is the amount shown in the declarations.

A(n) _____ policy is liability coverage for higher limits than is available in specific lines of insurance.

Following the declarations page, the balance of each form is divided into two sections._____ pertains to direct and indirect property losses related to the dwelling, other structures, personal property, and loss of use.

This part identifies the specifics that are unique to the insured, such as the covered location, and also lists policy limits, period of coverage, the name of the insurer, and similar information.Identify this part of the homeowners policy.

In a homeowners policy, 'Coverage B-Other Structures' insures any structure used for business purposes or rented to any person not a tenant of the dwelling.

List the three steps to shopping for homeowners coverage.

Flood insurance provides coverage for structures and personal property or contents on a replacement cost basis.

In a(n) _____ endorsement, replacement cost is covered even if it exceeds the limit of liability.

Identify the condition in a homeowners policy that provides that you cannot bring legal action against the insurer unless you have complied with the policy provisions and the action is started within one year after the occurrence causing loss or damage.

Personal liability coverage in a homeowners policy is on a named perils basis.

Homeowners policies are sometimes referred to as _____ policies because they combine different types of coverage that were previously provided by several policies and a number of endorsements.

When coverage is on an open-perils basis, all events not excluded from coverage are included.

A title insurance policy protects the home buyer against loss caused by defects that come into existence after the policy is issued.

Identify the endorsement that increases the amount of insurance automatically every year, or increases the amount of insurance to between 90 and 100 percent of replacement value and keeps the amount up to date every time the policyholder pays the premium.

Identify the situation that is covered under 'Coverage C-Personal Property' of a homeowners policy.

Describe umbrella policies in detail.

According to this doctrine, when a loss is caused simultaneously by two or more perils, and at least one is not excluded, the loss is covered.Identify this doctrine.