RMI3011 Test 2 Study Guide Section I Homeowner s Policy residential purposes Homeowner s Policy is written for one to four family dwellings used exclusively for private HO 2 broad form insures the dwelling and other structures and personal property against loss from covered perils named perils only HO 3 special form insures the dwelling and other structures against risk and direct physical loss to property All physical losses are covered unless excluded Basis of full replacement cost for losses to dwelling HO 4 contents broad form designated for tenants and provides personal liability insurance Insures the belongings but not the building HO 5 comprehensive form insures the dwelling other structures and personal property against the risk of direct physical loss to property Even belongings are insured except for excluded losses HO 6 unit owners form designed for condo units covers belongings and part of the building usually walls and floors and other renovations made to the condo HO 8 modified form covers loss to dwelling and other structures based on repair cost using modern methods for older homes Coverage A Dwelling and any other structure attached to the dwelling Cov b c and d are all percentages of this amount Coverage B Other Structures separated by clear space based on a percentage amount of coverage A 10 for HO 3 Coverage C Personal Property equal to 50 of the coverage of the dwelling covers belongings on and off the premises o Money cash and coin limit 200 o Securities stamps docs 1500 o Watercraft 1500 o Theft of jewelry and furs 1500 o Theft of firearms 2500 o Theft of silverware goldware etc 2500 Coverage D Loss of use provides additional living expense fair rental value and prohibited use when the premises cannot be used because of a covered loss 30 of CovA For prohibited use a max of two weeks expenses are covered Exclusions For Section I o Ordinance or law condemned building must be built to new code o Earth movement earthquake o Water damage mold fungus dry rot o Power failure o Neglect at or after a loss o Intentional loss o Vacant for more than 60 days o Hurricane unless specifically endorsed If the amount of insurance carried is less than 80 of the value of the building and a loss occurs to the dwelling the insured receives the greater of o Actual cash value to the part of the building damaged o Amount of insurance carried 80 x replacement cost x Loss Section II Homeowner s Policy Personal Liability Insurance protects against the named insured and family members against legal liability arising out of their personal acts Coverage E Personal liability 100 000 per occurrence bodily injury or property damaged caused by negligence Unlimited defense cost no personal injury coverage Coverage F Medical Payments to others 1000 per person Not based on legal liability Please don t sue me Does not apply to you or a regular resident of the dwelling Exclusions for CovE and CovF o Motor vehicles usually driven on roads o Watercraft if used in a race rented to others used to carry people for a fee used for business purpose o Aircraft unless a toy airplane o Hovercraft o Expected or intentional injury unless in self defense o Business activities o Professional services o Uninsured locations o War o Communicable disease o Sexual molestation corporal punishment physical or mental abuse o Controlled substance CovE Exclusions Only o Contractual liability o Property owned by an insured o Property in care of an insured o Workers comp o Nuclear energy o Bodily injury to an insured Cov F Exclusions o Injury to a residence employee off an insured location o Worker s comp o Nuclear energy o Regular residents on insured location Claim expenses are paid in full by insurer all court costs attorney fees and other legal expenses are covered and unlimited Damage to property of others pays up to 1000 per occurrence for property damaged caused by an insured Endorsements to the Homeowner s Policy o Inflation guard o Earthquake o Personal property replacement cost loss settlement no depreciation deduction o Scheduled personal property agreed value loss settlement o Personal injury endorsement false arrest malicious prosecution wrongful eviction Personal Umbrella Liability Insurance is excess insurance from 1 mil 10 mil and inexpensive to add The underlying coverage fulfills the deductible Requires underlying coverages and the minimum underlying limit for homeowners auto or watercraft Has fewer exclusions than underlying coverage retention on some losses Expanded coverage worldwide auto policy Rate Factors HO Liability slander defamation libel o Watercraft o Home business insurance coverage o Identity theft o bad dogs o Exotic animals o Swimming pool o Trampoline o Living on a lake o Serious losses previously o target defendant personality Auto Insurance Liability Coverage Part A protects a covered person against a suit or claim arising out of the ownership or operation of a covered vehicle o Split Limits 50 000 100 0000 25 000 50 000 limit of bodily injury coverage per person 100 000 bodily injury per accident 25 000 property damage per accident o Single limit applies to bodily injury and property damage total amount of insurance applies to the entire accident o Defense costs do not count in the liability limit o Liability covers the vehicles and whomever is driving it broad definition of named o Supplementary payments bail bonds appeal and release of attachment bonds interest on judgments loss of earnings reasonable expenses insured o CovA Exclusions Intentional injury Property owned or transported Used for public or livery conveyance taxi Used in auto business Used for racing or in a racing facility Worker s comp Medical Payments Coverage B are paid without regard to fault o Accident insurance people in the car only first party coverage o Covers the named insured and family members and others occupying a covered auto Covers the named insured and family members as pedestrians Covers going into and out of the vehicle o Coordinates with PIP pays 20 above PIP 80 pays amounts above 10 000 Uninsured Motorists CovC pays for bodily injury caused by an uninsured motorist or hit and run driver o Must pass PIP threshold in FL o Underinsured motorist is an endorsement Coverage for Damage CovD provides coverage for damage or theft o Includes owned and nonowned rental or borrowed for collision and other damages from covered perils o Pays losses at ACV no more than replacement cost Blue book value o If you
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