An HO-3 policy is in force with Coverage A limits of $75,000, Coverage B limits of
$56,250 and a deductible of $500.
During a severe thunderstorm, a window is broken by hail and wind blows rain water
through the window. Rainwater damages the hardwood floor, wall paper, vertical
blinds, and an area rug. The insured presents the following claim:
Sand and finish floor $650
Remove and replace wall paper $320
Remove and replace vertical blinds $175
Replace area rug $35
,All repairs are complete. How
680
Under an HO-3 policy, which of the following would not be a Coverage A item?
Select the single best answer:
A. Automatic lawn sprinkler system
B. Wall to wall carpet attached to the dwelling
C. A new (in the box), built-in microwave oven the insured intends to install in his
fishing cabin.
D. A shed, on a foundation, rented to a neighbor to store the neighbor's boat
E. Materials and supplies to build bookshelves in the basement of the residence
premises and stored in the garage
E. Materials and supplies to build bookshelves in the basement of the
residence premises and stored in the garage
Paul Smith owns a home at 1526 Keystone Rd. with a HO-3 policy in force. He also
owns a cabin in the mountains which is not listed on the declaration page of his
policy. Paul stayed at the cabin for two weeks and performed repairs on the cabin
during his stay. Paul brought with him the building materials, supplies and tools
necessary to make repairs. He also brought sporting equipment and clothes.
Lightning struck the cabin, damaging it and personal property while Paul was there.
All of the furn
, Tools, sporting equipment, and clothes are considered Personal Property
and covered up to the Coverage B limits of liability
Mike and Dorothy Jackson have a HO-3 policy with a $250 deductible. Their entire
redwood basket weave fence, which surrounds the rear yard, is destroyed in a
windstorm. The cost to replace the fence is $1,300. The Actual Cash Value of the fence
is $900. Repairs are complete. How much do you owe Mr. and Mrs. Jackson?
Select the single best answer:
A. $0
B. $1,300
C. $ 900
D. $1,050
E. $ 650
650
Assume an HO-3 is in force. The insured's home is damaged by a severe windstorm
and the family is forced to move into a motel for 2 weeks. The insured provided the
following receipts. The water, electricity and telephone remained in service following
the loss.
Amount Paid Amount Normally Spent
Mortgage Payment $985 $985
Hotel Bills $1,075 $0
Water $25 $35
Electricity $125 $95
Telephone $10 $38
Cable TV $0 $29
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