Coverages
Name a damage that is covered by homeowners' insurance.
Fire, theft, storms, and injury to others.
What is a policy limit?
The limit of what the insurance will pay for each coverage.
What is a deductible?
The price you pay before insurance pays the rest.
True or False
If you damage your house by storing/making drugs, it will still be covered by homeowners' insurance.
False
What do RCV and ACV stand for
Replacement Cost Value
Actual Cash Value
Is flooding included in the standard homeowners' insurance policy?
No
How do you determine the limit for personal property(C)?
Add the value of jewelry, furniture, and electronics, or have 50-70% of the dwelling.
How many kinds of deductibles are there in homeowners' insurance?
2 kinds
What is it called when you add extra coverage to the insurance policy?
Endorsement
How does ACV determine the money they give to you?
They determine the fair market value and give that as a reimbursement.
How many coverage categories are in homeowners' insurance?
6
Dwelling (A), Other structures (B), Personal Property (C), Loss of rent (D), Medical payments(F), and Premises liability (H).
What is typically the lowest limit?
Medical payments (F)
In what areas is it common for percentage-based deductibles?
Common natural disaster areas usually hurricanes or earthquakes.
Standard policy includes everything except
A) Anything inside the house
B) pest infestations
C) Any damage caused to others on the property
D) Cars in the garage/shed
B
Which has a lower premium, ACV or RCV
ACV
Premises liability covers
A) Anything on the premises of the property
B) Only the medical bills of the homeowner
C) Potential legal fees, medical bills, and settlement costs
D) A car going through the homeowner's living room.
C
What is the suggested limit to have in Premises liability(H) coverage?
Between $300,000-$500,000
What percentage can a percentage-based deductible range from?
1-10% of the Dwelling limit
True or False
Mold and rot coverage cannot be added to an insurance policy.
Flase it cna be added
What is the key difference between Replacement cost value and Actual Cash value
Replacement cost - gives money to replace the item as if new
Actual cash value - price of item after age/wear and tear
Loss of rent pays for what?
Hotel and Food
How do you calculate the limit for coverage A?
The price of construction to rebuild a house.
What is the difference between a Flat-dollar deductible and a Percentage-based deductible?
Flat dollar - pay a set dollar amount
Percentage-based - Percentage of dwelling
True or false
Your insurance will pay if your house is seized during a time of war, as per the standard policy.
False, any damages during war or from government action is not included
Do you get all the money at once with Replace cost value? Explain.
No, you receive the Actual cash value, and then you are reimbursed after providing proof of purchasing a new item.