Question

This policy is often recommended for older houses whose replacement costs are significantly greater than their market values. This policy is not often recommended because its list of covered perils is relatively limited. This policy is recommended for policyholders living in a rental house, apartment, or other dwelling.

Answer 1

Part A:

1. C.

2. B.

3. A.

Part B:

A.

Correct statement, question and options:

Part A:

Consider the following situations and, based solely on the information given, indicate the most appropriate form of homeowner's policy or supplemental floater.

Situation

1. This policy is often recommended for older houses whose replacement costs are significantly greater than their market values.

2. This policy is not often recommended because its list of covered perils is relatively limited.

3. This policy is recommended for policyholders living in a rental house, apartment, or other dwelling.

Recommended Policy

A. An H O-4 policy

B. An H O-1 policy

C. An H O-8 policy

Part B:

An individual who owns an extensive art collection or furs or fine art that is worth more than the traditional coverage provided by Part C of the homeowner's policy receives better protection using which of the following insurance products?

A. A scheduled personal property floater

B. A blanket personal property floater

C. An H O-8 policy

Source:

Previous question that can be found at C H E G G

Step-by-step explanation:

Part A:

1. This policy is often recommended for older houses whose replacement costs are significantly greater than their market values.

Recommended Policy: C. An H O-8 policy

This policy is also called the modified coverage form, is home insurance for older buildings where the replacement costs potentially outweigh the market value.

2. This policy is not often recommended because its list of covered perils is relatively limited.

Recommended Policy: B. An H O-1 policy

Let's recall that this policy only covers you from 10 named perils. "Named-peril" means that your home and personal property are covered against losses that are expressly listed on your policy.

3. This policy is recommended for policyholders living in a rental house, apartment, or other dwelling.

Recommended Policy : A. An H O-4 policy

Let's recall that this policy type describes a renters insurance policy. Typically with these policies, liability and personal property are covered up to the policy limits. This is an ideal policy for someone renting an apartment or house.

Part B:

An individual who owns an extensive art collection or furs or fine art that is worth more than the traditional coverage provided by Part C of the homeowner's policy receives better protection using which of the following insurance products?

A. A scheduled personal property floater

Let's recall that a scheduled property floater may be more appropriate if there are more valuable items to insure, although they will not cover items that the buyer doesn't specifically spell out.

Answer 2

A. H0-8

B. H0-1

C. H0-4

The below details are missing and are to be included in the question:

Consider the following situations and, based solely on the information given, indicate the most appropriate form of homeowner's policy or supplemental floater.

Situation Recommended Policy:

A. This policy is often recommended for older houses whose replacement costs are significantly greater than their market values.

B. This policy is not often recommended because its list of covered perils is relatively limited.

C. This policy is recommended for policyholders living in a rental house, apartment, or other dwelling.

Step-by-step explanation:

A. This policy is often recommended for older houses whose replacement costs are significantly greater than their market values. H0-8

This mostly for older homes, such as homes built 40 years ago or longer or is a historic landmark, or is otherwise architecturally important. The general rule is, if it will cost more to repair the damaged home than the home’s current market value, then this is often recommended.

B. This policy is not often recommended because its list of covered perils is relatively limited. H0-1

This only covers your home and personal property against losses that are expressly listed on your policy. The covered perils are: Fire, Explosions, Lightning, Hail and windstorms, Theft, Vandalism, Damage from vehicles, Damage from aircraft, Riots and civil commotion, Volcanic eruption. Any peril outside the covered perils in the list are not covered.

C. This policy is recommended for policyholders living in a rental house, apartment, or other dwelling. H0-4

This policy type describes a renters insurance policy. Your liability and your personal property are covered up to the policy limits. It is therefore recommended for policyholders renting an apartment or house.