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Terms in this set (61)
Coverage A insures the dwelling, including additions or other
structures attached to the building.
also includes limited coverage on landscaping
(trees, grass, shrubs) around the dwelling.
Coverage B insures other structures (referred to as "detached
structures" in some policies) on the premises of the
dwelling, such as unattached garages, fences, and
sheds.
Coverage C insures general personal property
(i.e., property not specifically named within the
contract for provision of specific coverage)
Coverage D provides loss-of-use coverage, which includes
expenses incurred while the dwelling is
uninhabitable due to damage caused by a covered
peril.
,Basic Form coverage includes 10 perils:
Fire and lightning
Windstorm and hail
Explosion
Riot and civil commotion
Vehicles
Aircraft
Smoke
Vandalism and malicious mischief
Theft
Volcanic eruption
The HO8 policy form often used for certain older homes.
This form is typically used when the cost to actually
replace the home exactly as it is far exceeds the
home's current market value.
Broad Form coverage adds additional perils to those covered under the
HO1 form.
this includes the 10 perils in basic coverage plus 7
additional perils:
Falling objects
Weight of ice, snow, or sleet
Collapse of buildings
Accidental discharge or overflow of water or steam
Damage from artificially generated electrical
currents
Explosion of steam or hot water system
Freezing of plumbing, heating and air conditioning
systems, and domestic appliances
, Open Peril Coverage includes coverage for all perils not specifically
excluded in the homeowners contract.
Most new homes are insured under open perils
coverage.
HO15 Endorsement upgrades HO3 personal property coverage on
broad form policies to open perils-level coverage.
HO5 form essentially combines the HO3 form with the HO15
endorsement to create one comprehensive form
that provides open perils coverage on personal
property as well as the dwelling, other structures,
and loss of use.
also added a number of changes and optional
endorsements to homeowners insurance policy
forms, including increased coverage amounts in
many cases.
Figure 2.1: Homeowners Policy
Coverages
EXAMPLE: Coinsurance penalty Amount of insurance, $300,000 ÷ $320,000
formula (amount of insurance required; arrived at by
$400,000 × 80%) = 0.9375 × $20,000 = $18,750;
The insured’s home would cost $18,750 - $1,000 deductible = $17,750 to be paid by
$400,000 to rebuild. Insurance on the insurance company.
the home is $300,000 with a $1,000
deductible. A kitchen fire causes
$20,000 in damage.
Actual Cash Value Replacement cost - Depreciation
with 100% Correct Answers | Verified | Latest
Update 2026
Save
Terms in this set (61)
Coverage A insures the dwelling, including additions or other
structures attached to the building.
also includes limited coverage on landscaping
(trees, grass, shrubs) around the dwelling.
Coverage B insures other structures (referred to as "detached
structures" in some policies) on the premises of the
dwelling, such as unattached garages, fences, and
sheds.
Coverage C insures general personal property
(i.e., property not specifically named within the
contract for provision of specific coverage)
Coverage D provides loss-of-use coverage, which includes
expenses incurred while the dwelling is
uninhabitable due to damage caused by a covered
peril.
,Basic Form coverage includes 10 perils:
Fire and lightning
Windstorm and hail
Explosion
Riot and civil commotion
Vehicles
Aircraft
Smoke
Vandalism and malicious mischief
Theft
Volcanic eruption
The HO8 policy form often used for certain older homes.
This form is typically used when the cost to actually
replace the home exactly as it is far exceeds the
home's current market value.
Broad Form coverage adds additional perils to those covered under the
HO1 form.
this includes the 10 perils in basic coverage plus 7
additional perils:
Falling objects
Weight of ice, snow, or sleet
Collapse of buildings
Accidental discharge or overflow of water or steam
Damage from artificially generated electrical
currents
Explosion of steam or hot water system
Freezing of plumbing, heating and air conditioning
systems, and domestic appliances
, Open Peril Coverage includes coverage for all perils not specifically
excluded in the homeowners contract.
Most new homes are insured under open perils
coverage.
HO15 Endorsement upgrades HO3 personal property coverage on
broad form policies to open perils-level coverage.
HO5 form essentially combines the HO3 form with the HO15
endorsement to create one comprehensive form
that provides open perils coverage on personal
property as well as the dwelling, other structures,
and loss of use.
also added a number of changes and optional
endorsements to homeowners insurance policy
forms, including increased coverage amounts in
many cases.
Figure 2.1: Homeowners Policy
Coverages
EXAMPLE: Coinsurance penalty Amount of insurance, $300,000 ÷ $320,000
formula (amount of insurance required; arrived at by
$400,000 × 80%) = 0.9375 × $20,000 = $18,750;
The insured’s home would cost $18,750 - $1,000 deductible = $17,750 to be paid by
$400,000 to rebuild. Insurance on the insurance company.
the home is $300,000 with a $1,000
deductible. A kitchen fire causes
$20,000 in damage.
Actual Cash Value Replacement cost - Depreciation
