1. What is homeowners insurance? Insurance that protects your home and
personal property against damage, theft, and liability claims.
2. What does HO-3 policy cover? The most common homeowners policy
providing open peril coverage for the dwelling and named peril coverage for
personal property.
3. What is dwelling coverage? Coverage A that pays to repair or rebuild your
home's structure if damaged by a covered peril.
4. What is personal property coverage? Coverage C that protects belongings
like furniture, clothing, and electronics against covered losses.
5. What is liability coverage in homeowners insurance? Coverage E that
protects you if someone is injured on your property or you damage someone
else's property.
6. What is medical payments coverage? Coverage F that pays medical
expenses for guests injured on your property, regardless of fault.
7. What is loss of use coverage? Coverage D that pays additional living
expenses if your home is uninhabitable due to a covered loss.
8. What is replacement cost coverage? Coverage that pays to replace damaged
property with new items of similar kind and quality without depreciation.
9. What is actual cash value? The replacement cost minus depreciation for age
and wear.
10. What is a named peril policy? A policy that only covers losses specifically
listed in the policy.
11. What is open peril coverage? Coverage for all causes of loss except those
specifically excluded.
12. What is a deductible in homeowners insurance? The amount you pay out
of pocket before insurance coverage begins.
,13. What is an HO-1 policy? A basic form policy covering only named perils
(rarely offered today).
14. What is an HO-2 policy? A broad form policy covering more named perils
than HO-1.
15. What is an HO-4 policy? Renters insurance covering personal property and
liability but not the dwelling.
16. What is an HO-5 policy? A comprehensive form providing open peril
coverage for both dwelling and personal property.
17. What is an HO-6 policy? Condominium insurance covering personal
property and interior improvements.
18. What is an HO-8 policy? A modified coverage form for older homes where
replacement cost exceeds market value.
19. What is a riders or endorsement? Additional coverage added to a standard
policy for specific items or perils.
20. What is scheduled personal property? Specifically listed valuable items
with agreed-upon values, like jewelry or art.
21. What is ordinance or law coverage? Coverage for increased costs due to
building code requirements after a loss.
22. What is water backup coverage? Protection against water damage from
sewer or drain backup.
23. What is earthquake coverage? Separate coverage for earthquake damage,
usually not included in standard policies.
24. What is flood insurance? Federal or private insurance for flood damage,
not covered by standard homeowners policies.
25. What is coverage for other structures? Coverage B that protects detached
structures like garages, sheds, or fences.
26. What is the standard other structures coverage limit? Typically 10% of
the dwelling coverage amount.
27. What is the standard personal property limit? Usually 50-70% of the
dwelling coverage amount.
28. What is the standard loss of use limit? Typically 20-30% of the dwelling
coverage amount.
, 29. What is extended replacement cost? Coverage that pays above policy
limits by a specified percentage if rebuilding costs exceed the limit.
30. What is guaranteed replacement cost? Coverage that pays whatever it
costs to rebuild your home, regardless of policy limits.
31. What is a special limits sublimit? Lower limits for specific categories of
property like cash, jewelry, or firearms.
32. What is the typical sublimit for jewelry? Usually $1,000-$2,500 for theft.
33. What is the typical sublimit for cash? Usually $200-$500.
34. What is inflation guard protection? Automatic annual increases in
coverage limits to keep pace with inflation.
35. What is building code upgrade coverage? Pays for upgrades required by
current building codes after a covered loss.
36. What is personal injury coverage? Liability protection for non-physical
injuries like libel, slander, or false arrest.
37. What is umbrella insurance? Additional liability coverage that extends
beyond homeowners and auto policy limits.
38. What is loss assessment coverage? Coverage for your share of association
assessments for common area damage in condos or HOAs.
39. What is identity theft coverage? Reimbursement for expenses related to
restoring your identity after theft.
40. What is home business coverage? Additional coverage for business
equipment and liability when running a business from home.
41. What perils are typically excluded from homeowners policies? Flood,
earthquake, war, nuclear hazard, intentional loss, and normal wear and tear.
42. Is mold covered under homeowners insurance? Limited coverage only if
resulting from a covered peril; often has sublimits.
43. What is the difference between HO-3 and HO-5? HO-5 provides open
peril coverage for personal property while HO-3 only covers named perils.
44. What factors affect homeowners insurance premiums? Location, home
value, construction type, claims history, credit score, and deductible chosen.
45. What is a claims-free discount? Premium reduction for not filing claims
over a specified period.
personal property against damage, theft, and liability claims.
2. What does HO-3 policy cover? The most common homeowners policy
providing open peril coverage for the dwelling and named peril coverage for
personal property.
3. What is dwelling coverage? Coverage A that pays to repair or rebuild your
home's structure if damaged by a covered peril.
4. What is personal property coverage? Coverage C that protects belongings
like furniture, clothing, and electronics against covered losses.
5. What is liability coverage in homeowners insurance? Coverage E that
protects you if someone is injured on your property or you damage someone
else's property.
6. What is medical payments coverage? Coverage F that pays medical
expenses for guests injured on your property, regardless of fault.
7. What is loss of use coverage? Coverage D that pays additional living
expenses if your home is uninhabitable due to a covered loss.
8. What is replacement cost coverage? Coverage that pays to replace damaged
property with new items of similar kind and quality without depreciation.
9. What is actual cash value? The replacement cost minus depreciation for age
and wear.
10. What is a named peril policy? A policy that only covers losses specifically
listed in the policy.
11. What is open peril coverage? Coverage for all causes of loss except those
specifically excluded.
12. What is a deductible in homeowners insurance? The amount you pay out
of pocket before insurance coverage begins.
,13. What is an HO-1 policy? A basic form policy covering only named perils
(rarely offered today).
14. What is an HO-2 policy? A broad form policy covering more named perils
than HO-1.
15. What is an HO-4 policy? Renters insurance covering personal property and
liability but not the dwelling.
16. What is an HO-5 policy? A comprehensive form providing open peril
coverage for both dwelling and personal property.
17. What is an HO-6 policy? Condominium insurance covering personal
property and interior improvements.
18. What is an HO-8 policy? A modified coverage form for older homes where
replacement cost exceeds market value.
19. What is a riders or endorsement? Additional coverage added to a standard
policy for specific items or perils.
20. What is scheduled personal property? Specifically listed valuable items
with agreed-upon values, like jewelry or art.
21. What is ordinance or law coverage? Coverage for increased costs due to
building code requirements after a loss.
22. What is water backup coverage? Protection against water damage from
sewer or drain backup.
23. What is earthquake coverage? Separate coverage for earthquake damage,
usually not included in standard policies.
24. What is flood insurance? Federal or private insurance for flood damage,
not covered by standard homeowners policies.
25. What is coverage for other structures? Coverage B that protects detached
structures like garages, sheds, or fences.
26. What is the standard other structures coverage limit? Typically 10% of
the dwelling coverage amount.
27. What is the standard personal property limit? Usually 50-70% of the
dwelling coverage amount.
28. What is the standard loss of use limit? Typically 20-30% of the dwelling
coverage amount.
, 29. What is extended replacement cost? Coverage that pays above policy
limits by a specified percentage if rebuilding costs exceed the limit.
30. What is guaranteed replacement cost? Coverage that pays whatever it
costs to rebuild your home, regardless of policy limits.
31. What is a special limits sublimit? Lower limits for specific categories of
property like cash, jewelry, or firearms.
32. What is the typical sublimit for jewelry? Usually $1,000-$2,500 for theft.
33. What is the typical sublimit for cash? Usually $200-$500.
34. What is inflation guard protection? Automatic annual increases in
coverage limits to keep pace with inflation.
35. What is building code upgrade coverage? Pays for upgrades required by
current building codes after a covered loss.
36. What is personal injury coverage? Liability protection for non-physical
injuries like libel, slander, or false arrest.
37. What is umbrella insurance? Additional liability coverage that extends
beyond homeowners and auto policy limits.
38. What is loss assessment coverage? Coverage for your share of association
assessments for common area damage in condos or HOAs.
39. What is identity theft coverage? Reimbursement for expenses related to
restoring your identity after theft.
40. What is home business coverage? Additional coverage for business
equipment and liability when running a business from home.
41. What perils are typically excluded from homeowners policies? Flood,
earthquake, war, nuclear hazard, intentional loss, and normal wear and tear.
42. Is mold covered under homeowners insurance? Limited coverage only if
resulting from a covered peril; often has sublimits.
43. What is the difference between HO-3 and HO-5? HO-5 provides open
peril coverage for personal property while HO-3 only covers named perils.
44. What factors affect homeowners insurance premiums? Location, home
value, construction type, claims history, credit score, and deductible chosen.
45. What is a claims-free discount? Premium reduction for not filing claims
over a specified period.
