Homeowners Insurance (HO) Policies

When does the insurer's duty to defend a lawsuit on an HO policy end?

• When the amount paid out for damages equals the limit of liability.

• When the lawsuit is settled out of court.

• When the policyholder cancels the insurance policy.

• When the insurer decides to stop covering the policy.

Are cemetery plots of the insured considered an insured location on an HO policy?

• Yes, they are considered an insured location.

• No, they are not considered an insured location.

• Only if they are used for burial purposes.

• Only if the insured owns the plot.

Who is defined as an insured under an HO policy?

• Residents of your household who are relatives, or any other person under age 21 who is in your care.

• Only the policyholder and their spouse.

• Any person who pays a premium for the policy.

• Individuals living outside the household who are related to the policyholder.

Is there coverage under your fire insurance policy if you rent your garage to a friend for storing mercantile goods?

• Yes, there will be full coverage.

• No, there will be no coverage.

• Yes, but only for personal items.

• Yes, but only if the goods are insured separately.

What happens to recovered property at the insured’s option?

• It will be returned to the insured or retained by the insurer.

• It will be sold at auction to the highest bidder.

• It will be destroyed to prevent further claims.

• It will be donated to a charity of the insurer's choice.

What does Coverage C on an unendorsed HO policy cover?

• Personal property of others while on the insured's residence premises.

• Liability for bodily injury to others on the insured's property.

• Damage to the insured's own personal property off the premises.

• Loss of use of the insured's residence due to a covered peril.

What is the liability coverage provided by an HO policy called?

• Premises liability.

• Personal injury liability.

• Property damage liability.

• Comprehensive liability.

Does an HO policy cover BI and PD arising out of the loading or unloading of a motor vehicle?

• Yes, it covers BI and PD arising out of the loading or unloading of a motor vehicle.

• No, it excludes BI and PD arising out of the loading or unloading of a motor vehicle.

• Yes, but only if the vehicle is parked.

• No, it only covers BI and PD from accidents on the road.

What is the coverage limit for credit card losses on all HO policies?

• Up to $250.

• Up to $500.

• Up to $1000.

• Up to $1500.

What does an HO-8 policy exclude?

• Damage due to flood.

• Damage due to fire.

• Damage due to theft.

• Damage due to earthquake.