Ch.5- Property insurance policies- Common characteristics Flashcards
1
Q
Personal property Insuance
A
for property having person, non business use
2
Q
Types of personal property policies (6)
A
- Tenant
- homeowners
- Mobile Home
- Condo Insurance
- Secondary dwelling
- Seasonal dwelling
3
Q
Commercial Property Insurance
A
- property having business use
4
Q
Attributes of Property policies (8)- list (NIICE DCS)
A
- No standard policy
- indentify property insured + location
- insures direct damage only
- Conditions + warranties
- Exclusions
- Deductible clause
- Claims payment
- Standard mortgage
5
Q
- No standard policy
A
- Plociy may be limited to a few perils or a variet
- Named Peril policies : name periols insured
- all risks policies: Perils not named, all causes of loss insured UNLESS excluded
6
Q
- Identify property + insured location
A
- Coverage resteicted to location stated in policy and
- only for items where an amount of insurance indicated
7
Q
- Insure direct damage only
A
- property insurance insures direct damage only
- damaged/destroyed by insured peril
- examples:
8
Q
- Conditions and Warranties
A
-
Conditions: req insured to do or not to do something
-
2 common:
- statutory conditions: in statute + legally binding
- Policy conditions: developed by insurers
-
2 common:
-
Warranties: a promise by insureds that certain facts are true + will stay that way
- breach warranty = contract nullified
9
Q
5.Exclusions
A
in property polcies- 2 types of exclusions:
-
Property Excluded:
- evideces of debt
- securities
- watercraft
- aircraft
- money
- other motor vehicles
- books of account
- vacant property
-
Perils excluded:
- Earthquake
- flood
- smoke due to agricultural smudging/insudtrial ops.
- rust/corrosion
- war
- nuclear incident
- increaed cost of repair/constructom
- sewer backup
10
Q
- Deductible clause
A
- INC IN ALL PROPERTY POLICIES
-
Deductible: amount insured req to pay for each loss BEFORE gets any payment from insurer
*
11
Q
7.Claims payment
A
- (i) Pair/set
- (ii) Parts
-
LEAST OF 3:
- Step 1: ACV at time of loss
- Step 2: Interest of insured
- step 3: Limit of insurance
- Other basis of settlement:
- replacement cost basis
- Valued policies
12
Q
(i) Pair/set
A
- Loss/damage to 1 item of pair/set DOES NOT = loss damage to whole thing
- other half still has value (deducted from claim amount)
13
Q
(ii) Parts
A
- loss to only 1 part of property that has several parts
- (Parts clause) basis of settlement is value of lost/damaged part + cost to install
14
Q
- Standard Mortgagee clause
A
- mortgagees req their interest to be protected w/ insurance
*
15
Q
Personal property-> Homeowner forms
A
- Dwelling bldg
- detached private structures
- personal property