Chapter 2 - Habitational Insurance Flashcards
Personal property
Contents of the insured’s dwelling and other personal property owned, worn or used by the insured while on the premises, which is usual to the ownership or maintenance of a dwelling.
Additional living expenses
Coverage that provides for additional cost of living elsewhere when the dwelling is damaged by an insured peril and the damage is sufficient to make the dwelling unfit for occupancy, or requires that the insured move out while repairs are being made. Also provides for loss of fair rental value if part of the dwelling was rented or being held for rental at the time of the loss
Vandalism
The wilful or ignorant destruction of property.
Malicious act
Wrongful act done without legal justification or excuse.
Vacant
Refers to circumstances where, regardless of the presence of furnishings, all occupants have moved out with no intention of returning and no new occupant has taken up residence; or in the case of a newly constructed house, no occupant has yet taken up residence.
Theft
Includes all means of taking property without the owner’s consent.
IBC’s homeowners forms are seldom used in their unabridged form. Explain why this is so.
With increased competition for homeowners insurance business, many insurers began to amend these forms in order to make them more attractive to consumers.
Identify four types of habitational risks which may be eligible for coverage under a homeowners form.
- Single family dwellings occupied year around by the owners as their principal dwelling
- Dwellings containing more than one family
- Insureds having more than one principal dwelling
- Mobile homes situated on a full basement
- Dwellings in the course of construction when the insured intends to occupy the dwelling upon completion
The format or structure of all IBC homeowners forms is the same. Identify the two coverage Sections provided under all homeowners forms.
Section I - Property Coverages Section II - Liability Coverage
Even though not named on the policy, a person who is not legally married to the Named Insured can qualify for coverage. outline the criteria set by the insurer to
determine if such person is eligible for
coverage.
The Named Insured and his/her spouse: Have lived together in a conjugal relationship continuously for 3 years, or Are the natural or adoptive parents of a child for a period of one year.
Identify three types of property excluded under Coverage C - Personal Property.
- Motorized vehicles or their equipment
- Aircraft or their equipment
Personal property which is temporarily removed from the insured’s premises is covered under all IBC homeowners forms.
State the territorial limits or coverage territory for this property.
Worldwide
Identify the two categories of property having Special Limits of Insurance as well as their limits and the amount for each.
(i) Specified property items which have been stolen or which were lost or damaged by other broad perils.
