Processing: Homeowner's Insurance

1.

What does HOI stand for?
2.

What must happen on a refinance if the policy expires within the first 60 days after closing?
3.

How should the mortgagee clause read?
4.

What form should be faxed or emailed to the insurance company when ordering insurance?
5.

Only the primary borrower should be listed on the insurance policy and not the co-borrower.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
The explanation for the answer "False" is that both the primary borrower and the co-borrower should be listed on the insurance policy. This is because both individuals have a financial interest in the property being insured, and it is important for both parties to be protected in the event of any damage or loss. By listing both borrowers on the policy, it ensures that both individuals are covered and can file a claim if necessary.

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6.

How long should the policy be effective for on a purchase?
- A.
  
  60 days
- B.
  
  12 months
- C.
  
  6 months
Correct Answer
B. 12 months

Explanation
The policy should be effective for 12 months on a purchase. This means that the policy will provide coverage and benefits for a period of one year from the date of purchase. It ensures that the purchaser is protected for an extended period of time, allowing them to make use of the policy benefits and services for a longer duration.

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7.

Dwelling coverage OR Dwelling coverage + replacement cost should equal one of the following calculations: 1. Estimated cost new (found on the appraisal). 2. Appraised value minus site value (found on the appraisal).
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
The explanation for the given correct answer is that when determining the amount of dwelling coverage needed for insurance purposes, it should either be equal to the estimated cost new, which is the cost to rebuild the property from scratch, or it should be equal to the appraised value of the property minus the site value. This ensures that the coverage adequately reflects the value of the property and its potential replacement cost in case of damage or loss. Therefore, the statement is true.

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8.

Please review the sample of the HOI policy in your book. If I have an appraisal with an appraised value of $200,000, do I have enough dwelling coverage?
- A.
  
  Yes
- B.
  
  No
Correct Answer
A. Yes

Explanation
Based on the given information, we cannot determine whether the dwelling coverage is enough or not. The appraisal value of $200,000 does not provide any context or comparison to the amount of dwelling coverage needed. Additional information such as the recommended or required dwelling coverage amount is necessary to make a definitive conclusion. Therefore, the answer cannot be determined from the given information.

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Processing: Homeowner's Insurance

What does HOI stand for?

What must happen on a refinance if the policy expires within the first 60 days after closing?

How should the mortgagee clause read?

What form should be faxed or emailed to the insurance company when ordering insurance?

Only the primary borrower should be listed on the insurance policy and not the co-borrower.

How long should the policy be effective for on a purchase?

Dwelling coverage OR Dwelling coverage + replacement cost should equal one of the following calculations: 1. Estimated cost new (found on the appraisal). 2. Appraised value minus site value (found on the appraisal).

Please review the sample of the HOI policy in your book. If I have an appraisal with an appraised value of $200,000, do I have enough dwelling coverage?