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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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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: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.
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.
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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