Homeowners InsuranceQuestion 154 of 215
An insured's condominium association sustains a covered fire loss to the common-area roof. Damage exceeds the association's master policy limit by $15,000, and each unit owner is assessed a share. Which HO-6 feature responds to the insured's share of that assessment?
a.Coverage B — Other Structures
b.Coverage C — Personal Property
c.Coverage F — Medical Payments
d.Loss Assessment coverage
Explanation
The HO-6 includes a built-in Loss Assessment coverage (often $1,000 with the option to increase) that pays the unit owner's share of a special assessment levied by the condominium association for direct loss to common property caused by a covered peril, subject to the policy's loss-assessment limit. The other listed coverages address different exposures.
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Related questions on this topic
- Six months after the insured's HO-3 takes effect, the insurer files a broadened policy form with the state that adds coverage for an additional peril at no extra premium. How does the liberalization clause apply to the insured's existing policy?
- Which statement best describes the California Earthquake Authority (CEA)?
- What is the purpose of an inflation guard endorsement on a homeowners policy?
- Which of the following claims would be EXCLUDED under Section II Coverage E of a standard HO-3?
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- Within how many days after the insured submits a sworn proof of loss does the standard fire policy (incorporated into California residential property policies) generally require the insurer to pay an undisputed loss?
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