Homeowners Insurance Practice Exam: Questions &
Answers: A+ Guide Solution
EXCLUSIONS
SECTION 2: COMMON LIABILITY EXCLUSIONS - ANSWER-Aircraft Liability
-Bodily Injury to any person eligible for Workers Comp
-Business
-Communicable Disease
-Controlled Substance
-Expected or Intended
-ETC
COVERAGES WITHIN A HOMEOWNER'S POLICY IS GROUPED INTO: - ANSWERtwo
different sections:
Section I: Property Coverages
Section II: Liability Coverages
ASSET - ANSWERresource that has a financial or economic value
COVERAGE - ANSWERamount of risk or liability that is covered for an individual or
entity by way of insurance services
THIRD PARTY INSURANCE - ANSWERinsurance that pays someone other than the
insured
DWELLING - ANSWERhouse, apt, condo, or other place of residence
FIRST PARTY INSURANCE - ANSWERinsurance applying to the insured's own property
or person
CLAIMANT - ANSWERperson who makes the insurance claim or the party to the loss
BODILY INJURY - ANSWERan action which causes bodily harm, sickness or disease,
including injuries that can result in death
PROPERTY DAMAGE - ANSWERphysical damage to the property
CLAIM - ANSWERinsured's notice to a carrier that a loss has occurred under a policy
of insurance
LIABILITY COVERAGE - ANSWERcovers losses for which an insured is legally liable
5 CATEGORIES OF PROPERTY COVERAGES COVERED IN SECTION I: -
ANSWERCoverage A - Dwelling
Coverage B - Other Structures
Coverage C - Personal Property
,Coverage D - Loss of Use
Additional Property Coverages
SECTION I: COVERAGE A - DWELLING - ANSWERin a homeowner's policy, the house is
considered 'dwelling' this means that the house and any attached structures
(attached garage) are protected under coverage a. it also covers any materials on or
next to the dwelling that is intended for use in alterations or repairs to the dwelling.
for example, building materials that would be used to fix up your home
LAND ON WHICH YOUR HOME IS BUILT - ANSWERis NOT covered on a homeowner's
policy
SECTION I: COVERAGE B - OTHER STRUCTURES - ANSWERprotects structures that are
not attached to the main dwelling or house: detached garages, guest houses, sheds,
pools, fences, or barns
EXCLUSIONS TO SECTION I: COVERAGE B - OTHER STRUCTURES - ANSWERother
structures that are rented to others are not covered
other structures used in whole or in part for business purposes are not covered
SECTION I: COVERAGE C - PERSONAL PROPERTY - ANSWERreimburses a homeowner
for the value of damaged possessions including furniture, appliances, and
technology. this applies even when they are not on the insured's property, such as
possessions in an off-site storage locker or with a child at camp
EXCLUSIONS TO SECTION I: COVERAGE C - PERSONAL PROPERTY - ANSWERanimals,
birds, fish
motor vehicles & their equipment/parts
property of non-related roomers, boarders, and other tenants
SECTION I: COVERAGE D - LOSS OF USE - ANSWERprovides coverage for additional
living expenses when a home cannot be lived in due to a covered loss. this can
include reimbursement for things like a hotel stay, storage fees, pet boarding, and
even renting a furnished apartment
coverage will also apply if the home is not damaged, but a civil authority (like a
fireman or police officer) prohibits the insured from using the premises
SECTION I: ADDITIONAL PROPERTY COVERAGE - ANSWERvary by policy but can
include the following:
-removal of debris following an insured peril
-reasonable repairs to protect the property from further damage
-trees, shrubs, and plants for a limited set of perils
-fire department service charge
-removal of property that has been endangered by an insured peril
-the abrupt collapse of a building, for certain perils
, -unauthorized use of credit card, electronic fund transfer card or access device,
forgery, and counterfeit money
-loss assessments charged by an association of property owners
-ordinance of law: increased cost of construction or repair because of a law
-grave markers
2 CATEGORIES OF SECTION II: LIABILITY COVERAGE - ANSWERCoverage E - Personal
Liability
Coverage F - Medical Payments to Others
SECTION II: COVERAGE E - PERSONAL LIABILITY - ANSWERwhen the homeowner,
their family members, or their pets are at fault, this coverage protects the insured in
two ways:
-liability for bodily injury/and or property damage
-defense against a lawsuit alleging liability for bodily injury and/or property damage
(referred to as 'Defense Coverage')
EXAMPLE OF COVERAGE E - DEFENSE LIABILITY - ANSWERyour dog goes in the
neighbor's yard, digs out their rose bushes and tears the stuffing out of their outdoor
seating furniture. afterwards, it bites the neighbor's kid. they file a claim for bodily
injury and property damage caused by the dog. Coverage E of your Homeowners
policy and the insurance carrier will pay for the following: Medical Expenses,
Replacement costs for the furniture, and Legal costs to settle the lawsuit
DEFENSE COVERAGE IS PROVIDED EVEN IF A SUIT IS - ANSWERgroundless, false, or
fraudulent. he insurer's obligation to defend ends only when the liability limit for the
occurrence is exhausted by payment of a settlement or judgement, even if policy
limits are exhausted by the costs of a claim.
SECTION II: COVERAGE F - MEDICAL PAYMENTS TO OTHERS - ANSWERwhen small,
often accidental, injuries sustained by a third party occurs on or off the homeowner's
premises, this coverage provides protection to those covered under the policy
NAMED INSURED DEFINITION - ANSWERperson or organization, designated by name,
as an insured on the insurance policy
AUTOMATIC INSURED DEFINITION - ANSWERthose parties who are provided some
coverage under the insurance policy even though they are not the named insured
(usually includes family members of the insured)
ADDITIONAL INSURED DEFINITION - ANSWERperson or organization who is added as
an insured on a policy at the request of the named insured
AUTOMATIC INSURED #1 - ANSWERRESIDENT RELATIVE - individuals who have
officially established residency at the dwelling through DMV records/voter
registration AND are related to the named insured by blood, marriage, or adoption
Answers: A+ Guide Solution
EXCLUSIONS
SECTION 2: COMMON LIABILITY EXCLUSIONS - ANSWER-Aircraft Liability
-Bodily Injury to any person eligible for Workers Comp
-Business
-Communicable Disease
-Controlled Substance
-Expected or Intended
-ETC
COVERAGES WITHIN A HOMEOWNER'S POLICY IS GROUPED INTO: - ANSWERtwo
different sections:
Section I: Property Coverages
Section II: Liability Coverages
ASSET - ANSWERresource that has a financial or economic value
COVERAGE - ANSWERamount of risk or liability that is covered for an individual or
entity by way of insurance services
THIRD PARTY INSURANCE - ANSWERinsurance that pays someone other than the
insured
DWELLING - ANSWERhouse, apt, condo, or other place of residence
FIRST PARTY INSURANCE - ANSWERinsurance applying to the insured's own property
or person
CLAIMANT - ANSWERperson who makes the insurance claim or the party to the loss
BODILY INJURY - ANSWERan action which causes bodily harm, sickness or disease,
including injuries that can result in death
PROPERTY DAMAGE - ANSWERphysical damage to the property
CLAIM - ANSWERinsured's notice to a carrier that a loss has occurred under a policy
of insurance
LIABILITY COVERAGE - ANSWERcovers losses for which an insured is legally liable
5 CATEGORIES OF PROPERTY COVERAGES COVERED IN SECTION I: -
ANSWERCoverage A - Dwelling
Coverage B - Other Structures
Coverage C - Personal Property
,Coverage D - Loss of Use
Additional Property Coverages
SECTION I: COVERAGE A - DWELLING - ANSWERin a homeowner's policy, the house is
considered 'dwelling' this means that the house and any attached structures
(attached garage) are protected under coverage a. it also covers any materials on or
next to the dwelling that is intended for use in alterations or repairs to the dwelling.
for example, building materials that would be used to fix up your home
LAND ON WHICH YOUR HOME IS BUILT - ANSWERis NOT covered on a homeowner's
policy
SECTION I: COVERAGE B - OTHER STRUCTURES - ANSWERprotects structures that are
not attached to the main dwelling or house: detached garages, guest houses, sheds,
pools, fences, or barns
EXCLUSIONS TO SECTION I: COVERAGE B - OTHER STRUCTURES - ANSWERother
structures that are rented to others are not covered
other structures used in whole or in part for business purposes are not covered
SECTION I: COVERAGE C - PERSONAL PROPERTY - ANSWERreimburses a homeowner
for the value of damaged possessions including furniture, appliances, and
technology. this applies even when they are not on the insured's property, such as
possessions in an off-site storage locker or with a child at camp
EXCLUSIONS TO SECTION I: COVERAGE C - PERSONAL PROPERTY - ANSWERanimals,
birds, fish
motor vehicles & their equipment/parts
property of non-related roomers, boarders, and other tenants
SECTION I: COVERAGE D - LOSS OF USE - ANSWERprovides coverage for additional
living expenses when a home cannot be lived in due to a covered loss. this can
include reimbursement for things like a hotel stay, storage fees, pet boarding, and
even renting a furnished apartment
coverage will also apply if the home is not damaged, but a civil authority (like a
fireman or police officer) prohibits the insured from using the premises
SECTION I: ADDITIONAL PROPERTY COVERAGE - ANSWERvary by policy but can
include the following:
-removal of debris following an insured peril
-reasonable repairs to protect the property from further damage
-trees, shrubs, and plants for a limited set of perils
-fire department service charge
-removal of property that has been endangered by an insured peril
-the abrupt collapse of a building, for certain perils
, -unauthorized use of credit card, electronic fund transfer card or access device,
forgery, and counterfeit money
-loss assessments charged by an association of property owners
-ordinance of law: increased cost of construction or repair because of a law
-grave markers
2 CATEGORIES OF SECTION II: LIABILITY COVERAGE - ANSWERCoverage E - Personal
Liability
Coverage F - Medical Payments to Others
SECTION II: COVERAGE E - PERSONAL LIABILITY - ANSWERwhen the homeowner,
their family members, or their pets are at fault, this coverage protects the insured in
two ways:
-liability for bodily injury/and or property damage
-defense against a lawsuit alleging liability for bodily injury and/or property damage
(referred to as 'Defense Coverage')
EXAMPLE OF COVERAGE E - DEFENSE LIABILITY - ANSWERyour dog goes in the
neighbor's yard, digs out their rose bushes and tears the stuffing out of their outdoor
seating furniture. afterwards, it bites the neighbor's kid. they file a claim for bodily
injury and property damage caused by the dog. Coverage E of your Homeowners
policy and the insurance carrier will pay for the following: Medical Expenses,
Replacement costs for the furniture, and Legal costs to settle the lawsuit
DEFENSE COVERAGE IS PROVIDED EVEN IF A SUIT IS - ANSWERgroundless, false, or
fraudulent. he insurer's obligation to defend ends only when the liability limit for the
occurrence is exhausted by payment of a settlement or judgement, even if policy
limits are exhausted by the costs of a claim.
SECTION II: COVERAGE F - MEDICAL PAYMENTS TO OTHERS - ANSWERwhen small,
often accidental, injuries sustained by a third party occurs on or off the homeowner's
premises, this coverage provides protection to those covered under the policy
NAMED INSURED DEFINITION - ANSWERperson or organization, designated by name,
as an insured on the insurance policy
AUTOMATIC INSURED DEFINITION - ANSWERthose parties who are provided some
coverage under the insurance policy even though they are not the named insured
(usually includes family members of the insured)
ADDITIONAL INSURED DEFINITION - ANSWERperson or organization who is added as
an insured on a policy at the request of the named insured
AUTOMATIC INSURED #1 - ANSWERRESIDENT RELATIVE - individuals who have
officially established residency at the dwelling through DMV records/voter
registration AND are related to the named insured by blood, marriage, or adoption
