Chapter 3 - Section 1 Flashcards
Other Habitational Insurance Forms
Identify four perils that mobile homes are more susceptible to than conventional homes
- Fire
- Windstorm
- Hail
- Transportation
Identify the purpose of “tie downs”
Windstorm
- To provide greater stability against windstorm
- Straps which go over the unit and which are secured to either side of the foundation
Explain the purpose of “dent clause”
Hail
- Metal siding can become pitted during a hail storm
- While storm may not cause any openings, its appearance can be seriously affected
- A dent clause excludes payment unless the exterior siding has been torn or punctures by the storm
Identify two expenses included in “Emergency Removal Expense” and state the amount available
- Expenses incurred in disconnecting water and power services
- Towing or transporting costs
If the mobile home is threatened by an insured peril the policy will provide up to 5% of the amount of insurance on the dwelling to pay for reasonable expenses incurred to remove it from the site
Identify two exclusions to the Mobile Home Insurance Form (IBC 1157)
- Loss or damage caused by moving
- Loss due to conversion, embezzlement or secretion by any person in possession of the building
Identify four prospects for a Tenant’s Package policy
- Those living in apartments
- Those renting a dwelling or any portion of it
- Those who, as a part of their remuneration, receive the use of a dwelling
- Owner(s) of a business who occupies private living quarters in a mercantile or commercial building owned by the business
Identify two items normally insured within the definition of personal property
- Improvements or betterments made by or acquired at the expense of the tenant
- Up to $500 for the following damage (excluding fire damage) to the portion of the building occupied by the insured:
- Damage resulting from theft or attempted theft
- Damage caused to the interior of the building by
vandalism or malicious acts
Define condominium
A system of separate ownership of individual units in (a) multiple unit building
Identify two items that the Condominium Corporation is responsible to insure
- The value of the building (as it was originally constructed) including the value of those units owned by its members; and
- The value of the common elements
Identify three common elements
- Parking area
- Landscaping
- Recreational areas
In addition to personal property, identify the three unique coverages available to unit owners
Coverage UI - Unit Improvements and Betterments
Coverage U2 - Loss Assessment
Coverage U3 - Unit Additional Protection
Under Coverage U2, identify four situations where a special assessment may be levied against each unit owned
- Under-insurance
- Application of a co-insurance penalty
- Cause of the loss is not an insured peril or is specifically excluded under the corporation’s policy
- Breach of policy condition
The Seasonal Residence form is used to insure premises used on a seasonal basis. Coverage is available for Named Perils, the same as those provided by the Homeowners Basic Form (IBC 1151) with two important exclusions or conditions, which are:
- No coverage provided for the peril of transportation
- The following coverages are provided only when indicated on the Coverage Summary page:
- Burglary or Robbery
The insurer is not prepared to provide broad theft
coverages for such property - Vandalism or Malicious Acts
- Glass Breakage
- Burglary or Robbery
An additional premium will be required when these coverages are added to the policy
On seasonal residence, some insurers will agree to provide the broader coverages of the Homeowners forms, subject to certain eligibility requirements. Identify five such requirements:
- Principal residence must be insured with same insurer
- Building must be constructed as a year round residence and occupied at least one day in a sixty day period throughout the year
- Building not rented to others
- Primary heating must be by thermostatically controlled furnace or electricity
- Building must be accessible by maintained roadway year round
Identify the five underwriting guidelines most insurers follow before they will provide a dwelling under construction with an “All Risk” policy
- Coverage limited to single or two family dwellings
- Dwelling must be owner-occupied upon completion of construction
- Coverage must be purchased not later than the completion of the foundation
- Amount of insurance purchased must be no less than the estimated completed value
- Coverage limited to one year
