Chapter 22 RSM Exam | Questions with 100%
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Terms in this set (94)
Homeowners insurance Homeowners insurance is a package policy, widely
used in the United States, designed primarily for
owner-occupants of family dwellings. It can
provide coverage for the dwelling itself, other
structures, personal property, additional living
expenses, personal liability claims, and medical
payments to others. :contentReference[oaicite:1]
{index=1}
ISO homeowners forms The homeowners insurance forms are drafted by
the Insurance Services Office (ISO) and are
standardized forms used broadly in the insurance
market for residential risks.
:contentReference[oaicite:2]{index=2}
Six homeowners forms available The notes identify six homeowners forms: HO-2,
HO-3, HO-4, HO-5, HO-6, and HO-8. These forms
differ mainly in what property is covered and
whether the coverage applies on a named perils
basis or an open perils basis.
:contentReference[oaicite:3]{index=3}
,Named perils coverage Named perils coverage means the policy covers
losses only if they are caused by a peril specifically
listed in the policy. If the cause of loss is not
named, there is no coverage.
:contentReference[oaicite:4]{index=4}
Open perils coverage Open perils coverage, also described in the notes
as risk-of-direct-physical-loss or all-risks coverage,
covers all direct physical losses unless the policy
specifically excludes them. This approach is
broader than named perils coverage.
:contentReference[oaicite:5]{index=5}
HO-2 broad form The HO-2 broad form covers the dwelling, other
structures, and personal property on a named
perils basis. Coverage exists only when the loss is
caused by one of the perils specifically listed in the
policy. :contentReference[oaicite:6]{index=6}
Perils covered under HO-2 The HO-2 covers fire or lightning, windstorm or
hail, explosion, riot or civil commotion, aircraft,
vehicles, smoke, vandalism or malicious mischief,
theft, falling objects, weight of ice snow or sleet,
accidental discharge or overflow of water or
steam, sudden and accidental tearing apart
cracking burning or bulging of certain systems or
appliances, freezing of plumbing heating air
conditioning or sprinkler systems or household
appliances, sudden and accidental damage from
artificially generated electrical current, and
volcanic eruption. :contentReference[oaicite:7]
{index=7}
, HO-3 special form The HO-3 special form covers the dwelling and
other structures on an open perils basis, meaning
all direct physical losses are covered unless
specifically excluded, while personal property is
covered only on a named perils basis.
:contentReference[oaicite:8]{index=8}
Why HO-3 is broader than HO-2 HO-3 is broader because the dwelling and other
structures are covered for all direct physical losses
except exclusions, whereas HO-2 covers property
only for specifically named causes of loss.
:contentReference[oaicite:9]{index=9}
HO-4 contents broad form The HO-4 form is renters insurance. It covers a
tenant's personal property on a named perils basis
rather than covering the building itself.
:contentReference[oaicite:10]{index=10}
HO-5 comprehensive form The HO-5 comprehensive form provides open
perils coverage on the dwelling, other structures,
and personal property. It is broader than HO-3
because even personal property is covered on an
open perils basis. The notes also identify it as the
most expensive form. :contentReference[oaicite:11]
{index=11}
Why HO-5 is the broadest standard HO-5 is the broadest because it provides open
homeowners form perils coverage not only for the dwelling and other
structures, but also for personal property, subject
to exclusions. :contentReference[oaicite:12]
{index=12}
Correct Answers | Verified | Latest Update 2026
Save
Terms in this set (94)
Homeowners insurance Homeowners insurance is a package policy, widely
used in the United States, designed primarily for
owner-occupants of family dwellings. It can
provide coverage for the dwelling itself, other
structures, personal property, additional living
expenses, personal liability claims, and medical
payments to others. :contentReference[oaicite:1]
{index=1}
ISO homeowners forms The homeowners insurance forms are drafted by
the Insurance Services Office (ISO) and are
standardized forms used broadly in the insurance
market for residential risks.
:contentReference[oaicite:2]{index=2}
Six homeowners forms available The notes identify six homeowners forms: HO-2,
HO-3, HO-4, HO-5, HO-6, and HO-8. These forms
differ mainly in what property is covered and
whether the coverage applies on a named perils
basis or an open perils basis.
:contentReference[oaicite:3]{index=3}
,Named perils coverage Named perils coverage means the policy covers
losses only if they are caused by a peril specifically
listed in the policy. If the cause of loss is not
named, there is no coverage.
:contentReference[oaicite:4]{index=4}
Open perils coverage Open perils coverage, also described in the notes
as risk-of-direct-physical-loss or all-risks coverage,
covers all direct physical losses unless the policy
specifically excludes them. This approach is
broader than named perils coverage.
:contentReference[oaicite:5]{index=5}
HO-2 broad form The HO-2 broad form covers the dwelling, other
structures, and personal property on a named
perils basis. Coverage exists only when the loss is
caused by one of the perils specifically listed in the
policy. :contentReference[oaicite:6]{index=6}
Perils covered under HO-2 The HO-2 covers fire or lightning, windstorm or
hail, explosion, riot or civil commotion, aircraft,
vehicles, smoke, vandalism or malicious mischief,
theft, falling objects, weight of ice snow or sleet,
accidental discharge or overflow of water or
steam, sudden and accidental tearing apart
cracking burning or bulging of certain systems or
appliances, freezing of plumbing heating air
conditioning or sprinkler systems or household
appliances, sudden and accidental damage from
artificially generated electrical current, and
volcanic eruption. :contentReference[oaicite:7]
{index=7}
, HO-3 special form The HO-3 special form covers the dwelling and
other structures on an open perils basis, meaning
all direct physical losses are covered unless
specifically excluded, while personal property is
covered only on a named perils basis.
:contentReference[oaicite:8]{index=8}
Why HO-3 is broader than HO-2 HO-3 is broader because the dwelling and other
structures are covered for all direct physical losses
except exclusions, whereas HO-2 covers property
only for specifically named causes of loss.
:contentReference[oaicite:9]{index=9}
HO-4 contents broad form The HO-4 form is renters insurance. It covers a
tenant's personal property on a named perils basis
rather than covering the building itself.
:contentReference[oaicite:10]{index=10}
HO-5 comprehensive form The HO-5 comprehensive form provides open
perils coverage on the dwelling, other structures,
and personal property. It is broader than HO-3
because even personal property is covered on an
open perils basis. The notes also identify it as the
most expensive form. :contentReference[oaicite:11]
{index=11}
Why HO-5 is the broadest standard HO-5 is the broadest because it provides open
homeowners form perils coverage not only for the dwelling and other
structures, but also for personal property, subject
to exclusions. :contentReference[oaicite:12]
{index=12}
