Homeowners Insurance: Understanding Different Types and Coverages, Quizzes of Credit and Risk Management

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TERM 1

HO-

DEFINITION 1 Broad formnamed peril policy Covers the dwelling, other structures, and personal property on a named basis TERM 2

HO-

DEFINITION 2 Special Formmost commonly purchased- covers the dwelling and other structures on a risk-of-direct=physical loss basis- All direct physical losses are covered exept those specifically excluded- pesonal property is covered on a named peril basis TERM 3

HO-

DEFINITION 3 Content broad formno insurable intrest in dwelling only content- covers a tenant's personal property on a named peril basis - does not include coverage for dwelling and other structures TERM 4

HO-

DEFINITION 4 Comprehensive form- provides open peril coverage on dwelling, other structures and personal property- all direct physical losses are covered except those losses specifically excluded TERM 5

HO-

DEFINITION 5 unit owners form condo owners- covers personal property on a named peril basis- a minimum of $5000 of insurance is also provided on the condo unit that covers improvements and additions

TERM 6

HO-

DEFINITION 6 Modified coverage- designed for older homes- "cost of repair basis"- replacement must be on the same location - market value > repacement cost - moral hazard TERM 7

2 Sections of HO-3 Coverage

DEFINITION 7

1. Property Coverage 2. Liability coverage