Homeowners Insurance: Understanding Personal Liability and Coverages, Quizzes of Credit and Risk Management

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Personal Liability

- Insurance protects the named insured and family members

against legal liability arising out of their personal acts

TERM 2

Where is personal liability coverage found?

DEFINITION 2

Section 2 of the Homeowners policy

TERM 3

Coverage E protects?

DEFINITION 3

- The insured when a claim for damages is brought becasue

of bodily injury or property damage caused by an insured's

negligence.

TERM 4

Coverage F covers?

DEFINITION 4

-Medical payments to others

TERM 5

Coverage E and F exclusions

DEFINITION 5

- expected or intentional injury Business activities -

professional services Liability from the use of: 1) motor

vehicle 2)an aircraft 3) hovercraft 4) watercraft

Claims expenses

Court costs, attorney fees; covered in addition to the policy

limits for liability damages

TERM 7

Inflation- guard endorsement

DEFINITION 7

Provides for an annual pro rata increase in the limits of

insurance in the Section 1 coverages

TERM 8

Earthquake coverage endorsement

DEFINITION 8

Covers earthquakes, landslides, volcanic eruption and earth

movement

TERM 9

Personal property replacement cost loss

settlement endorsement

DEFINITION 9

Is added to the policy; claims are paid on the basis of

replacement cost with no deduction for depreciation

TERM 10

Scheduled personal property endorsement

DEFINITION 10

-is added to the policy; insurer agrees to pay the stated

amount for a scheduled item if a total loss occurs

Personal injury endorsement

extends liability coverage to legal liability arising out of

person injury; e.g. false arrest, slander

TERM 12

Watercraft endorsement

DEFINITION 12

covers watercraft that are otherwise excluded under the

policy

TERM 13

Home business insurance coverage

endorsement

DEFINITION 13

Covers both business property and legal liability arising out of

a home based business

TERM 14

What does cost of homeowners insurance

depend on?

DEFINITION 14

- type of construction - location - construction costs -

deductible amount - insurance score

TERM 15

Section II of the Homeowners 3 policy

covers?

DEFINITION 15

personal liability and medical payments to others

Insurers cannot consider _______ of the home

as a rating factor

Location