FlexiQuiz - HOA Board Hurricane Insurance Quiz

1. Why should HOAs and COAs encourage homeowners to carry Loss Assessment Coverage under their homeowners' insurance policy?

A) To cover homeowner's share of a Special Assessment passed by HOA to pay for damages sustained to common property but not covered under HOA Master Insurance Policy (e.g. deductibles or costs in excess of a loss limit)

B) Covering total losses in catastrophic events

C) Paying for the HOA's insurance premiums

D) None of the above

2. In the context of insurance forms, what does Special Causes of Loss (aka 'Open Perils') signify?

A) Only perils named in the policy are covered

B) All forms of loss not specifically excluded are covered

C) Coverage for open spaces only

D) None of the above

3. What special considerations should HOA members remember regarding deductibles for Named Storms?

A. They are always the amount regardless of the total damage or cause of loss

B. They are smaller than deductibles for other perils

C. They are often expressed as a percentage of the property's total value

D. They do not apply to Atlantic tropical storms named by meteorological authorities

4. What are 'sub limits' in an insurance policy?

A) Limits of coverage that are assigned to specific types of losses or specific covered property which is less than the total limit of coverage under the policy imits of coverage for specific types of losses or properties less than the total coverage offered

B) Additional coverage limits beyond the main policy

C) Deductibles

D) Premiums

5. What should be typically included in the schedule of covered property for a single-family HOA with common areas, pergolas, and a clubhouse?

A) All common areas, business personal property and contents owned by the HOA, outdoor property such as furniture, and structures such as clubhouses and pergolas

B) Only the interiors of individual housing units

C) Only the building exteriors

D) Personal property of the residents

6. How does Replacement Cost Value method compensate for a loss versus Actual Cash Value?

A) Insurance pays the current cost to replace the damaged property whereas Actual Cash Value withholds a deduction for depreciation based on use or age

B) The market value of the property at the time of loss

C) Only the original cost of construction

D) The depreciated value of the property

7. What types of expenses are included under the "Extra Expense" category of a property insurance policy?

A) Lost income

B) Costs that you incur in order to continue operationg while repairs are underway such as hired security to stand watch at a damaged access gate

C) Damage to personal belongings

D) All of the above

8. What does a Texas Property Code require a condominium with vertically stacked units cover under the master policy with regards to individual units?

A. It only covers the personal property within the units.

B. It always excludes individual units, focusing on common areas and external structures.

C. They must be covered to at least the original cost of construction of the units but may not include improvements or betterments made by the owners.

D. It always provides full coverage for both the units and any improvements or betterments made.

9. What should an HOA do immediately after a loss to ensure it has met its obligations to "save the property" under the property insurance policy?

A. Wait for insurance adjusters before taking any action

B. Contact all residents to assess personal losses

C. Engage a contractor to familiar with Insurance claims and Xactimate to mitigate damage and document and estimate repairs

D. Review and adjust insurance policies for future events

10. How are roofs over 12 years old typically valued in property insurance policies?

A. Replacement Cost Value

B. Market Value based on location

C. Actual Cash Value taking into account depreciation

D. Fixed lump-sum based on original cost

11. What is a 'coinsurance penalty' in an insurance policy?

A) It reduces the policy premium

B) A reduction in the payment you receive from insurance if the property is underinsured at the time of loss

C) It increases the deductible amount

D) It extends the coverage to additional properties

12. Which of the below would you expect not to be covered under your HOA's property insurance policy if it uses a Special Causes of Loss form?

A. Fire and smoke

B. Theft and vandalism

C. Windstorm and hail

D. Earthquakes, floods, and freeze damage to plants and trees

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