Chapter 14 Property Insurance

Question 1

What is Property Insurance ?

Answer 1

It protects a home or income/business property against any physical damage or loss of assets in case of fire theft or vandalism.

Question 2

What is the regulatory agency that oversees all types of insurance in New York?

Answer 2

The NYS Department of Financial Services.

Question 3

What is Liability Insurance?

Answer 3

Insurance coverage to protect against claims alleging that one negligence or inappropriate action resulting in bodily injury or property damage.

Question 4

What is a package policy?

Answer 4

A policy that includes several different types of coverage such as property insurance and liability insurance.

Question 5

What is Perils ?

Answer 5

Events cause by weather or people that do the damage.

Question 6

*Explain Homeowners 1 (Ho-1)?

Answer 6

Basic policy
Insured the home and contents against listed perils
Few insured sell this policy

Question 7

Explain Homeowners-2?

Answer 7

Insured home and contents and perils in HO-1

Also the perils my include failing objects weight of ice , water over flow plumbing HVAC.

Question 8

*Explain Homeowners-3?

Answer 8

The most widely used
The standard used
Covers home for all risk of physical lose except flood,earthquakes war

Question 9

Explain Homeowners-5?

Answer 9

Protects the home against the same perils as HO-3

Personal possessions

Question 10

Explain Homeowners-8?

Answer 10

Also know as the market value policy
A modified version of the HO-1 policy
Provides actual cash value in place of replacement cost for a building
The company’s settlement figure will not pass the amount necessary to repair or replace the dwelling
Generally used when the replacement value of the property exceeded its market value

Question 11

Explain the HO-4 or the Tenants or Cooperative Owners Policies?

Answer 11

A renters or tenants insurance policy
The homeowners and tenants policy reimburse tenants for increase in living expenses if the home becomes uninhabitable because of damage

Question 12

*Explain the Condominium Unit Owners Polices or HO-6?

Answer 12

Provides property coverage for any alterations , appliances fixtures and improvements within insured limits.
Common areas should be insured through polices issued to the cooperative owners and condominium association these polices insure against damage to contents of the apartment or when people are injured or suffer property damage

Question 13

• what does Actual Cash Value Mean?

Answer 13

The insured is reimbursed for the replacement cost minus the PHYSICAL DEPRECIATION of the lost or damaged property.

Question 14

What is replacement cost?

Answer 14

It means that the insured is covered and reimbursed for the actual cost of replacing the damaged property.
(The cost of buying another )

Question 15

What is an Endorsement?

Answer 15

A document attached to a policy that modifies or changes the original policy in some way.

Question 16

A typical homeowners policy typically includes how much worth of liability coverage? But most insurance professionals and mortgage lenders advise or require how much liability coverage?

Answer 16

100,000

300,000 to 500,000

Question 17

What is the New York Property Issurance Underwriting Association (NYPIUA)?

Answer 17

A pool of all insurance company’s writing fire insurance in New York.

Question 18

Besides Fire what else coverage does the NYPIUA offer?

Answer 18

Vandalism,malicious mischief and sprinkler leakage.

Question 19

Normally how much higher is NYPIUA?

Answer 19

20%

Question 20

• What is the National Flood Insurance Program (NFIP)?

Answer 20

Covers for loses resulting in floods.

Question 21

Who administers the NFIP?

Answer 21

FEMA (The Federal Emergency Insurance Program).

Question 22

According to NY State law an insurance company may cancel a homeowners or tenants policy by issuing a cancellation notice during what?

Answer 22

The first 60 days as long as the notice s states the reason for cancellation.

Question 23

After a policy has been infect for 60 days it may not be cancelled or renewed for how long?

Answer 23

3 years

Question 24

By law if a insurance company decides not to renew they must provide a notice at lease how many days but no more that how many days?

Answer 24

45 and 60

Question 25

What is a premium?

Answer 25

The amount a property owner has to pay for insurance coverage.

Question 26

What is a deductible?

Answer 26

The amount the insured must pay toward a claim before receiving any policy benefits.

Question 27

What is Commercial General Liability Insurance?

Answer 27

A basic liability policy that covers four forms of injury bodily injury and property damage that results in actual physical damage or loss, personal injury and advertising injury.

Question 28

What does a All Risk policy package cover?

Answer 28

Package covers expenses incurring when business is suspended due to disaster related event such as a tornado and can include coverage for the cost such as rent payroll and utilities.

Question 29

What is a Umbrella Policy?

Answer 29

An excess liability policy that provides additional coverage above that offered by primary polices. Kicks in after the main insurance is exhausted.