17. Louie realizes that his homeowners insurance covers water damage, but he does not report his recent water damage to the insurer even though the cost of repairs exceeded his $500 deductible. Friends said he should have reported the claim, but Louie was afraid the insurer would not renew his policy if it thought he had plumbing problems. Since Louie is not wanting to report homeowners claims of this nature, he should seriously consider (Search Chapter 2)

a. a policy that covers fewer perils.

b. flood insurance.

c. increasing his policy's deductible.

d. reducing his policy limit.

18. Most of the furnishings in Jacqueline's Victorian home are valued antiques that she accumulated over the years with no little effort and at considerable expense. Modern replicas are readily available, but if these items were damaged or destroyed, Jacqueline would like to be sure to recover from the insurer based on these items' value as authentic antiques, even though most items show some signs of wear. The best way for Jacqueline to achieve her objective is to (Search Chapter 2)

a. add a Personal Property Replacement Cost Loss Settlement (HO 04 90) endorsement to her homeowners policy.

b. increase the standard Coverage C limits on her homeowners policy to reflect the unusually high values at risk in her home.

c. insure these items as fine arts under a personal marine policy or floater.

d. purchase a homeowners policy that provides functional replacement cost coverage.

19. Because every child and adult in his family has at least one computer, Byron's insurance agent suggested that he add the Special Computer Coverage (HO 04 14) endorsement to his homeowners policy (2011 edition). This endorsement (Search Chapter 2)

a. increases the total personal property limit by the amount shown in the endorsement that applies to computer equipment.

b. modifies the policy to cover computer equipment on an all risks basis.

c. modifies the policy's sublimits that apply to electronic equipment.

d. shortens the policy's list of excluded types of personal property.

13. As an investment, Estella purchased a duplex, and she rents its two units to Minnie and Cassandra. Because Estella has a homeowners policy on the single-family home she lives in, Estella (Search Chapter 1)

a. already has liability coverage for the duplex.

b. can add an Additional Residence Rented to Others 1, 2, 3 or 4 Families (HO 24 70) endorsement to her current policy to obtain liability coverage on the duplex.

c. can add an Additional Residence Rented to Others 1, 2, 3 or 4 Families (HO 24 70) endorsement to her current policy to obtain property coverage on the duplex.

d. will have to purchase an additional separate homeowners policy to obtain property coverage on the duplex.

14. Billy and Nanny live in the city. To supplement their regular income, they raise a few goats and sheep that they keep in a pasture that is a mile outside the city. In their case, the most appropriate endorsement to their homeowners policy (2011 edition) for filling what would otherwise be a coverage gap has this title or one similar to it. (Search Chapter 1)

a. Business Pursuits

b. Farmers Personal Liability

c. Incidental Farming Personal Liability

d. Permitted Incidental Occupancies

15. Cristina is interested in adding earthquake coverage to her homeowners policy, because she lives in what been recognized as a high-risk area. If she is able to obtain earthquake insurance, she is likely to find that the insurer will only provide coverage with (Search Chapter 1)

a. a high deductible.

b. a high limit.

c. a low limit.

d. the National Earthquake Insurance Program.

16. Endorsements are available to modify the property coverage of Jeremiah's homeowners policy for all the following contingencies EXCEPT: (Search Chapter 1)

a. Jeremiah erects a temporary tent in his backyard for his daughter's wedding.

b. Jeremiah operates a business out of another structure on his premises.

c. Jeremiah rents a garage away from his main premises.

d. Jeremiah rents a structure on his premises to another party.