Homeowners Policy (HO)Pregunta 302 de 474
A homeowner rents a detached backyard cottage to a stranger who runs a salon there. Under Coverage B the cottage is:
a.covered in full up to the Coverage B limit
b.covered under Coverage A as part of the home
c.covered, but only for fire and lightning
d.not covered, as it is a business rental
Explicación
Coverage B drops a structure that is rented to someone who is not a tenant of the dwelling, and it also drops any structure held for business use; a detached garage rented to a tenant of the home is the narrow exception. The answer paying the full Coverage B limit ignores both the rental and the business use, and the structure is detached, so Coverage A never reaches it.
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Preguntas relacionadas de este tema
- Under an open-perils dwelling form, the burden of proof at claim time works this way:
- A home carries Coverage A of $280,000. A detached garage is destroyed and costs $34,000 to rebuild. On an unendorsed form, Coverage B pays at most:
- Which of these is insured under Coverage B rather than under Coverage A?
- A dwelling is written with Coverage A of $240,000. On an unendorsed Homeowners form, the Coverage C limit is:
- The 50% relationship between Coverage C and Coverage A is best described as:
- Personal property usually kept at an insured's other residence, such as a vacation cabin, is limited to:
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