2. Types of homeowner's insurance policies There are six types of standard horneowner's policies, commonly referred to as HO-1 through HO-4, HO-6, and HO-8. Each provides coverage for damage due to certain perils, or events that cause damage to homes and other related property, as well as hability coverage for accidents that occur on one's property. Apply your knowledge of the different policy types and features to the three scenarios below. Insuring a Standard Home Susan is the owner of a 15 -year-old hoene and a looking to buy a homeowner's insurance policy. She feels it would be overly cautious to purchase protection from all perils, but in addition to protection from fire, vandalism, windstorms, and so forth, she wants insurance for damage caused by malfunctioning of anternal structures such as air conditioning or plumbing. Based on the peril coverage it offers, she should purchase an insurance policy. Her home has a replacement value of $500,000; therefore, she insures her home for the standard minimum legal requirement of $ Assuming she does not purchase any additionat coverage beyond the legat minimums, complete the following table indicating the maximum dollar value of reimbursement she can receive for each of the following: Insuring While Away at College Madeline's son, Nathan, is a college student living in an off-carnpus apartment where he resides year-round. He owns an expensive cornputer and wants to make sure the full value is insured. Which of the following statements regarding her son's insurance needs are true? Check all that apply. His computer is covered under his parents policy. He should purchase an HO-2 brond form insurance policy because he is not covered under his parents' policy. He should purchase an HO-4 policy, so he canchoose the value of the property he wishes to insure. Insuring an Older Home Susan's parents live in a Brownstone-style home built in 1875. Although the house is still standing, it has fallen into disrepair, and the cost of rebulding it with the original style and quality would be extremely high. If their home were destroyed, Susan's parents would choose to rebuild a much more modest structure rather than restore it to its original state; therefore, they purchase an form policy to provide Frotection. Which of the following statements regarding her son's insurance needs are true? Check all that apply. His computer is covered under his parents policy. He should purchase an HO2 broad form insurance policy because he is not covered under He should purchase an HO4 policy, so he can choose the value of the property he wishes Insuring an Older Home Susan's parents live in a Brownstone-style home built in 1875. Although the house is still standing, rebuilding it with the original style and quality would be extremely high. If their home were destroye much more modest structure rather than restore it to its onginal state; therefore, they purchase an form policy to provide protection. Insuring an Older Home a Brownstone-style home built in 1875. Although the house is still standing, it has fallen into disrepair, and the cost of riginal style and quality would be extremely high. If their home were destroyed, Susan's parents would choose to rebuild a ucture rather than restore it to its original state; therefore, they purchase an form policy to provide protection