Chapter 3 Other Habitational Insurance and Endorsements

Question 1

Mobile Home Insurance (IBC 1157)

Answer 1

• A Mobile home is one that is factory built on a chassis which can be moved.
• On site the home is placed on a concrete foundation or timbers

• Construction varies
Weight of home
Use of space

Insurers will sometimes offer homeowners coverage for mobile or modular homes with basements (heated space)

Question 2

Mobile Homes: Major causes of loss

Answer 2

• Fire – often total losses

• Windstorm
Skirting and tie downs increase stability

• Hail
Metal siding – dent clauses

• Transportation
Losses during transport are not covered

Question 3

Description of Dwelling amended (Mobile Homes)

Answer 3

Appliances, furniture, and equipment forming a
permanent part of the building

Awnings, skirting, porches, and tie-down
equipment

Question 4

Emergency Removal Expense included: (Mobile Homes)

Answer 4

5% for reasonable expenses to remove from the
site in the event of an emergency

NO coverage for loss/damage caused by moving

Question 5

Mobile Home Exclusions

Answer 5

• Exclusions are the same as a basic homeowners form.
• No coverage for damages caused while the home is
being moved
• Conversion & embezzlement is also excluded

Question 6

Tenants Package Forms (IBC 1161/63)

Answer 6

• Designed for people who occupy a residential premises they do not own

Apartments
Rented Dwellings or Condos
People who have housing provided by employers
Commercial Buildings that have a residential occupancy
Most insurers will insure the building as commercial

Question 7

Tenants Comprehensive & Basic Form

Answer 7

Comprehensive – All-Risk
Basic Form – Named Perils

• Improvements and Betterments are included in contents
• Building Damages – up to $500 due to damages caused by theft
for vandalism
• Additional Living Expense – 20% of coverage C

Question 8

Unique Features of Condos

Answer 8

Shared Ownership

Common Elements – Responsibility of Condo/Strata Corporation
Individual Unit Owners are responsible for:
• Contents
• Improvements to Units

Question 9

Unit Improvements and Betterments for Condos

Answer 9

• $1000 basic limit, most give 25% of contents limit

Question 10

Loss Assessment Coverage for Condos

Answer 10

• Where the Corporation’s coverage is inadequate

* $5000 basic limit, most give 100-250% of contents limit

Question 11

Unit Additional Protection for Condos

Answer 11

• Where Corporation has inadequate, ineffective or no insurance

Question 12

Seasonal Dwelling

Answer 12

Named Perils
• Transportation – not covered
• Theft – not covered unless added
Burglary & Robbery – purchased per $1000.
• Vandalism – not covered unless added
• Glass Breakage – not covered unless added

Question 13

Course of Construction

Answer 13

Many insurers offer a homeowners comprehensive form while the dwelling is under construction, however, since theft, glass breakage and vandalism and water damage is not covered while the dwelling is vacant or under construction – be careful. If the underwriter will not add coverage, you might be better off to arrange a commercial policy which would provide broader coverage. no tool coverage

Question 14

Rented Dwellings

Answer 14

• Often written on a Basic Homeowners Form without vandalism
or theft.
• Can be written on an ACV basis
• May not provide coverage for contents (appliances, window coverings, etc.)
• Rental Income

Question 15

What do Endorsements Do?

Answer 15

• An endorsement is a change to a policy
• Provide coverage for excluded property or perils
Earthquake
• Increase limits for specific type of property
Jewellery Floater
• Broaden coverage
Water Damage endorsement
• Decrease deductible, remove coverage and any other change (address, name, etc.)

Question 16

Fine Arts Endorsement Section A: On Premises Coverage

Answer 16

• Up to 10% is available for property at a gallery

* NO coverage for items at a fairground/exposition

Question 17

Fine Arts Endorsement Section B: Off Premises Coverage

Answer 17

• Objects that are away for prolonged periods of time

* No coverage for items at a fairground/exposition

Question 18

Key Exclusions for Fine Arts Endorsement

Answer 18

Breakage (unless caused by named perils)
Birds, vermin, rodents, insects
Damage while being worked on

Question 19

Special Conditions / Provisions for Fine Arts Endorsement

Answer 19

Newly acquired items – 25% for 30 days
Must be packed/unpacked by competent packers
Automatic Reinstatement
Statutory Conditions apply

Question 20

Personal Articles Endorsement

Answer 20

Provides coverage for certain types of high-value personal property
anywhere in the world.
• Increases insurance limits
• Broadens coverage

Question 21

Personal Articles Endorsement Special Conditions and Provisions

Answer 21

1. Stamp & Coin Collections
• Scheduled – list each item
• Blanket Basis – maximum payable
for a single item: $250
2. Newly Acquired items - $5000
• Must be type already insured
• Maximum 30 days
3. Reinstatement
• Amount of insurance not reduced
by amount of loss
4. Statutory Conditions apply

Question 22

8

Underwriting Personal Articles

Answer 22

• Each article is specifically described
• Appraisals are usually required and may have to be updated
every few years
• Personal use only (eg. musical instruments, cameras)
• Limited binding authority

Question 23

Increased Cost – Demo & Construction

Answer 23

• Usually would apply to older homes, but all risks are exposed
• Covers increased costs due to demolition and bylaws.
• Insurer will only pay for minimum compliance
• Sprinkler systems, wiring and heating most common

Question 24

Residential Glass endorsement

Answer 24

• Used to reduce deductibles

Question 25

Sewer backup Endorsement

Answer 25

Removes exclusion of “the backing up or escape from a sewer, sump, septic tank, drain or downspout”

Question 26

earthquake endorsement

Answer 26

• Deductibles are a percentage (usually 10%)

Question 27

Vandalism or Malicious Acts Endorsement

Answer 27

• May be added to Seasonal Risks

Question 28

Watercraft

Answer 28

• Most homeowners policies limit coverage for boats to $1000
• Floaters are usually All-risk, but there are named perils forms out there that exclude transportation and water perils (collision with objects in the water, intake)
• Coverage can be provided for the boat, motor, trailer and accessories (life-jackets, fish finders, oars, batteries). Toys, such as skis & tubes can be excluded

Question 29

Watercraft Exclusions

Answer 29

• Accumulative Damage – dents and prop damage
• Wear, tear, gradual deterioration, defects, breakdown, corrosion, rust, dampness, freezing
• Damages caused while the boat is being worked on
• Dishonesty of persons to whom the boat is entrusted – except carriers for hire
• Rented to others; carrying passengers for compensation; speed tests and racing

Question 30

Travel Trailers

Answer 30

• Trailers are excluded on the IBC homeowners policy (some
insurance companies allow coverage for utility trailers)
• Coverage is usually All-Risk
• ACV or Replacement (depends on age)
• Contents are often insured, however, items such as jewellery,
cash, tools or limited (to avoid duplication of coverage)
• Emergency Towing and Loss of Use are often covered

Question 31

Other items that can be added as an endorsement

Answer 31

• Motorized Vehicles – Tractors, Golf carts, kiddy snowmobiles,
quads and mini-bikes
• Horses & Livestock (limited to named perils)
• Bicycles
• Business Property – most insurance companies offer home
business coverage in some form
• Sports Equipment (golf clubs) & sportswear (scuba gear)