In contrast, a traditional homeowners policy covers the property on an actual cash value basis. covers damages that the insured becomes legally obligated to pay because of bodily injury or property damage caused by an occurrence to which coverage applies. George is a sales representative and keeps much of his business equipment and merchandise in his home and in his car. Fire insurance covers damage and losses caused by fire and is often purchased in addition to standard homeowners insurance. The different classes of property that are eligible for coverage . With actual cash value, loss is depreciated based on age and condition. Fair market value B. loading bridges, Which Personal Articles Floater item is insured on a stated value basis? Some companies limit the amount to 10 percent of the amount of insurance you have for your possessions. Which floater covers works of art sold by an art gallery on a consignment basis? D. Property damage -- Physical injury to tangible property, but does not include loss of use of that property, Property damage -- Physical injury to tangible property, but does not include loss of use of that property. Which of the following is true regarding the HO-3 (Special Form)? A) Special limits of liability. Which of the following statements about coverage under the federal flood insurance . C. positive state affect The dwelling on the insured premises, plus any structures that are attached to the dwelling --Coverage A covers the dwelling and attached structures. Is personal property that is usually located in a secondary residence covered under Coverage C? A. D. Damage to property owned by the insured's tenant. Which of the following would be covered under the Damage to Property of Others additional coverage of the Homeowners Policy? Joaquin wants both property and liability insurance in one policy. Personal Property Replacement Cost - Dick Law Firm This year, $500,000\$ 500,000$500,000 is to be distributed. The insured is less likely to have gaps in coverage by having property and liability insurance in one policy, When an insured adds a scheduled personal property endorsement to a homeowners policy, Coverage is provided on an open peril basis. A HO-3 policy provides coverage on which basis? The agent recommends either the HO 2 Broad Form or the HO 3 Special Form. D) Personal property replacement cost endorsement. The coverage for Damage to Property of Others excludes property that is covered in Section I D. Installation Floater, Tourist luggage is insured by which floater? How much did Molly's insurance company pay to the mortgagee? However, there are still a couple of issues to note when using a form such as the HO 04 61 (05 11)Scheduled Personal Property Endorsement. Scheduled personal property is a supplemental insurance policy that extends coverage beyond the standard protection provided in a homeowners' insurance policy. The dollar amount might not adequately cover the cost of replacing your valuables, so youll need scheduled personal property coverage. The standard mortgage clause specifies the rights and duties of the mortgagee which include, Paying the premium if the insured fails to do so, The homeowners forms contain certain additional coverage. Borrowed property meets the definition of contents --- Coverage C covers property owned or used by the insured, including property owned by others. Property and Casualty Flashcards | Chegg.com $2,500 for theft of firearms c. $500 for business personal property on the insured premises d. $1,500 for securities, accounts, deeds, and evidences of debt c. $500 for business property