Your insureds occupy a single family detached dwelling. For economic reasons, they are considering renting the finished basement to a tenant. What affect will this have on their Homeowners Policy? OA) None at all. Renting part of a dwelling is not considered a commercial activity. OB) They will have to install a smoke detector in the basement and the policy will then be in full force. OC) The policy will have to be cancelled and re-issued on a Secondary Dwelling form. OP) The policy must be endorsed to declare it is no longer a single family, owner-occupied dwelling.
Your insureds occupy a single family detached dwelling. For economic reasons, they are considering renting the finished basement to a tenant. What affect will this have on their Homeowners Policy? OA) None at all. Renting part of a dwelling is not considered a commercial activity. OB) They will have to install a smoke detector in the basement and the policy will then be in full force. OC) The policy will have to be cancelled and re-issued on a Secondary Dwelling form. OP) The policy must be endorsed to declare it is no longer a single family, owner-occupied dwelling.
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Transcribed Image Text:Your insureds occupy a single family detached dwelling. For economic reasons, they are considering renting the
finished basement to a tenant. What affect will this have on their Homeowners Policy?
OA) None at all. Renting part of a dwelling is not considered a commercial activity.
OB) They will have to install a smoke detector in the basement and the policy will then be in full force.
OC) The policy will have to be cancelled and re-issued on a Secondary Dwelling form.
OD) The policy must be endorsed to declare it is no longer a single family, owner-occupied dwelling.
Transcribed Image Text:What is the definition of "deductible"?
OA) It is a specified amount to be subtracted from the amount of an insured loss and assumed by the insured.
OB) It is a variable amount by which a property claim is reduced to reflect the age of the damaged property.
OC) It is a stated percentage of its value to which a property must be insured; otherwise the insured must assume
the loss.
OD) It is an agreed specified sum above which claims are paid in full but below which no payments are made.
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