Insuring a Standard Home

Neha is the owner of a 30-year-old home, and is looking to buy a homeowners insurance policy. The previous home she owned was severely damaged by a tree falling through the roof, a peril that was not covered by her basic-form policy, therefore she is looking to buy a comprehensive policy that covers damage from all perils (except those specifically excluded). Based on the peril coverage it offers, she purchases an _____ insurance policy.

Her home has a replacement value of $450,000, therefore she insures her home for the minimum legal requirement of $______. Assuming she does not purchase any additional coverage beyond the legal minimums, complete the following table indicating the maximum dollar value of reimbursement she can receive for each of the following:

Damage to personal property: $_____
Medical payments to others: $______
Loss of Use (Additional living expenses): $______
Comprehensive personal liability: $______

Form Coverages. Covered perils Basic Form (HO-1) A-$15.000 minimum Fire smoke, lightning, windstorm, hail, volcanic eruption, explosion, glass breakage aircraft, B-10% of A vehicles, riot or civil commotion, theft, vandalism or C-50% of A malicious mischief D-10% of A E-$100,000 F-$1,000 per person Broad Form (HO-2) Minimum varies; other Covers all basic-form risks plus weight of ice, snow, coverages in same percentages steam: falling objects; accidental tearing, cracking sleet; freezing; accidental discharge of water or or amounts except or burning of heating/cooling/sprinkler system or D-20% of A appliance; damage from electrical current Special Form (HO-3) Minimum varies, other Dwelling and other structures covered against risks of direct physical loss to property except losses coverages in same percentages specifically excluded, personal property covered by or amounts except same perils as HO-2 plus damage by glass or safety D-20% of A glazing material, which is part of a building, storm door, or storm window Renter's Form (HC-4) Coverages A and B--Not Covers same periis covered by HO-2 for personal property applicable C-Minimum varies by company D-20% of C E-$100.000 F-$1,000 per person Comprehensive Form A-Minimum va by Covers same perils as HO-3, but covered perils are (HO-5) dwelling other structures, and personal property company covered against risks of direct physical loss except B-Minimum varies by losses that are excluded specifically company CMinimum varies by company D-40% of C E-$100,000 F-$1,000 per person Condominium Form Coverage A-Minimum $1,000 Covers same perils covered by HO-2 for personal (HO-6) B-Not applicable property C-Minimum varies by company D-40% of C E-$100,000 F-$1,000 per person Modified Coverage Same as HO-1, except losses Same perils as HO-1, except theft coverage applies Form (HO-8) are paid based on the amount to losses only on the residential premises up to a required to repair or replace maximum of $1,000; certain other coverage the property using common restrictions also apply construction materials and methods Form Coverages. Covered perils Basic Form (HO-1) A-$15.000 minimum Fire smoke, lightning, windstorm, hail, volcanic eruption, explosion, glass breakage aircraft, B-10% of A vehicles, riot or civil commotion, theft, vandalism or C-50% of A malicious mischief D-10% of A E-$100,000 F-$1,000 per person Broad Form (HO-2) Minimum varies; other Covers all basic-form risks plus weight of ice, snow, coverages in same percentages steam: falling objects; accidental tearing, cracking sleet; freezing; accidental discharge of water or or amounts except or burning of heating/cooling/sprinkler system or D-20% of A appliance; damage from electrical current Special Form (HO-3) Minimum varies, other Dwelling and other structures covered against risks of direct physical loss to property except losses coverages in same percentages specifically excluded, personal property covered by or amounts except same perils as HO-2 plus damage by glass or safety D-20% of A glazing material, which is part of a building, storm door, or storm window Renter's Form (HC-4) Coverages A and B--Not Covers same periis covered by HO-2 for personal property applicable C-Minimum varies by company D-20% of C E-$100.000 F-$1,000 per person Comprehensive Form A-Minimum va by Covers same perils as HO-3, but covered perils are (HO-5) dwelling other structures, and personal property company covered against risks of direct physical loss except B-Minimum varies by losses that are excluded specifically company CMinimum varies by company D-40% of C E-$100,000 F-$1,000 per person Condominium Form Coverage A-Minimum $1,000 Covers same perils covered by HO-2 for personal (HO-6) B-Not applicable property C-Minimum varies by company D-40% of C E-$100,000 F-$1,000 per person Modified Coverage Same as HO-1, except losses Same perils as HO-1, except theft coverage applies Form (HO-8) are paid based on the amount to losses only on the residential premises up to a required to repair or replace maximum of $1,000; certain other coverage the property using common restrictions also apply construction materials and methods