Chapter 3: Package Policies Flashcards
What are package policies?
Those which group coverage together into one premium payment, usually where there is homogeneity (commonality) of risks.
Give some contingencies which may be covered under household insurance.
- Buildings insurance
- Contents insurance
- Legal liability
- Other optional extensions
Give some of the contingencies covered by buildings insurance as part of a combined household policy.
- Fire
- Vandalism / riot (though usually excluded if unoccupied for more than 30 or 60 days)
- Storm
- Falling trees
- Escape of water
- Escape of oil
- Theft
- Impact
- Glass damage
- Legal / architects’ / surveyors’ fees
- Loss of rent
- Accidental damage
What does contents insurance cover?
- Household goods or effects belonging to the insured or a family member living in the property.
Are walls and ceilings covered under contents insurance?
No. They are regarded as part of the structure.
How does a contents insurance policy treat theft & attempted theft?
- Theft of cash is excluded if the entry wasn’t forcible
- Theft by deception is excluded unless the only deception used was to get into the home
- Theft while the building is lent or let and if it does not involve forcible entry or exit
What is a single articles limit?
Where no item is treated as being worth more than a percentage of the total sum insured.
What is a valuables limit?
The total value of all valuable items will not exceed a certain fraction of the total sum insured.
What are usually automatically covered in a household contents policy?
- Temporary removal (i.e. for a flood)
- Clothing
- Accidental breakage
- Loss of rent (if the building becomes uninhabitable)
- Home office equipment
Give some optional extensions to a household contents policy.
- Accidental damage to entertainment equipment (e.g. radios / TVs)
- Accidental damage in course of removal
What does legal liability cover under buildings and contents insurance?
- Accidental injury
- Employer of domestic employees (usually £10m)
- Business visitors
Give some optional extensions to a household policy.
- Personal possessions (items frequently moved outside the property)
- Money and credit cards
- Bicycles
- Freezer contents
- Caravans
- Small craft
- Sports equipment
- Animals
- Legal expenses
- ID fraud
- Personal cyber
Give some of the contingencies covered by a standard travel insurance policy.
- Personal accident benefits (excludes dangerous sports)
- Medical expenses
- Loss of deposits
- Baggage cover (may exclude unattended baggage)
- Personal liability for injury to a third party
- Delayed baggage (usually after 12 hours)
- Travel interruption (e.g. delayed public transport)
- Travel delay
Give some optional extensions to a travel policy.
- Failure of tour organiser e.g. those covered by ABTA and ATOL
- Loss of passport
- Lack of services and amenities (usually £20 a day)
- Legal expenses (costs incurred in pursuing compensation)
Give some general exclusions to a travel policy.
- Death due to suicide, unprescribed drugs, pregnancy, insanity
- Loss of luggage due to confiscation
- Damage to fragile objects
- Terrorism (for countries not considered safe)
What are commercial package policies?
Those which group together for owners of small businesses, such as shopkeepers which cover multiple contingencies they may be subject to.
What is the extent of property cover in a commercial combined policy?
Everything within the building is covered though alcohol and cigarettes may be restricted.
If the owner is the insured then buildings insurance may be better.
What risks are covered by commercial combined policies?
- Fire and additional perils
- Business interruption
- Theft (violent or forcible)
- Money (£1k during business hours, £750 after business hours in a safe, £250-500 after hours outside a safe)
- Glass
- Assault (£5,000)
- Goods in transit (£500)
- Employers’ liability
- Public liability
- Products liability
Give some optional extensions to a commercial combined policy.
- Refrigerated stock
- Business ‘all risks’
- Legal expenses
