Homeowners Insurance Flashcards

A DC homeowner has an HO-3 policy with a $500 deductible. A covered windstorm causes $3,200 in damage. How much does the insurer pay?

Answer: $2,700

The insurer pays the covered loss minus the deductible: $3,200 – $500 = $2,700.

What does 'replacement cost value' (RCV) mean in the context of a homeowners claim settlement?

Answer: The cost to replace damaged property with like-kind and quality without deducting depreciation

Replacement cost value pays for replacing damaged property with new items of like kind and quality, without deducting for depreciation.

Which endorsement would a DC condominium unit owner add to cover improvements they made to the unit interior?

Answer: Building additions and alterations (improvements and betterments) endorsement

The building additions and alterations endorsement (common in HO-6 condo policies) covers unit improvements made by the insured that are not covered by the condo association's master policy.

Under a homeowners policy, which of the following would be covered under Section II (Liability)?

Answer: A guest slipping on ice on the insured's DC sidewalk and suffering injuries

Section II of the homeowners policy covers the insured's legal liability for bodily injury or property damage to others, such as a visitor injured on the premises.

DC requires homeowners insurers to provide how many days' advance notice before non-renewing a homeowners policy?

Answer: 30 days

DC regulations require homeowners insurers to provide at least 30 days' advance written notice of non-renewal.

Which homeowners policy form is designed specifically for renters who do not own the building they occupy?

Answer: HO-4

HO-4, the Renters (Tenant) Form, covers a renter's personal property and personal liability but not the building structure.