Chapter 6: Personal Property Insurance Flashcards
When only 1 person is named as the insured on the policy and a claim is made by their “spouse” or common law partner, the insurer will agree to pay the claim when certain evidence is provided to it. Identify 3 ways in which such persons might qualify for coverage…
- prove person is married to the named insured
- person living with named insured in a relationship for a period of 3 years
- natural/adoptive parent of a child living with named insured for 1 year
Identify 4 persons included in the definition of “you” or “your” and who would be “insureds” under the policy
- person named on the policy
- spouse/partner of the named insured
- relatives that live with insured
- any person under 21 in the care of the named insured (excludes boarders and roomers = tenants)
- students attending school (must be supported by named insured if temporarily away)
Definition of “dwelling”
private residence
Definition of “premises”
land within lot lines
4 coverages provided by Section 1: Property Coverages
- dwelling building
- detached private structures
- personal property
- additional living expense
Identify: Section 2: Liability Coverage
E. F. G. H.
E. personal liability
F. voluntary medical payments
G. voluntary payment for damage to property
H. voluntary compensation for residence employees
List Extensions of Coverage (11)
- debris removal - additional 5% of coverage A
- property removal - extends removal clause to 30 days
- moving to another home - covers new place & property while in transit for up to 30 days, restricted to within Canada.
- fire department expense - up to $1000 if need to call fire department
- change of temperature - covers indirect damage to personal property inside dwelling if dwelling was damaged by insured peril
- freezer food - provide up to $2000 when food is damaged due to “power failure” or “mechanical breakdown”
- lock replacement - up to $500 only keys are stolen and reported to police
- tear out - cost to repair walls, ceilings, etc which must be torn apart before water damage from pipes can be repaired
- arson conviction reward - up to $1000 with no deductible
- credit/debit cards, forgery or counterfeit money - $1000 max
- inflation protection - covers increased cost of replacing due to inflation
Identify the items insured under Coverage A - Dwelling Building (6)
- dwelling and attached structures: main house + garages, carport, porches attached, etc
- permanently attached outdoor equipment: children’s swings, tree house, sprinklers
- outdoor swimming pool and attached equipment: in or above ground (ie. hot tubs)
- materials and supplies: used in construction or repairs (not for new home building)
- building fixtures temporarily removed: while at repair/seasonal storage (up to 10% of dwelling limit)
- outdoor trees, shrubs and plants: 5% of dwelling limit up to $500 per plant. Limited to fire, lightning, explosion, impact, riot, vandalism (excludes: windstorm or hail damage)
Coverage B - Detached Private Structures includes…
any structure or building separated by open space
State the 3 Insuring Agreements included within Coverage C - Personal Property
- on premises coverage: only covers “usual” property (stuff normally found in homes), excludes property belongings to roomers & boarders, covers property of others in the care of the insured (storing a friend’s stuff)
- off premises coverage: anywhere in the world temporarily away from premises
- property of students: covers if a full time student living away from home
Identify 3 types of personal property items excluded under Coverage C - Personal Property
- motorized vehicles or their equipment (ie. golf cart, ATV): except “domestic” vehicles (ie. lawnmowers, wheelchairs)
- campers, trailers or their equipment
- aircraft or their equipment
Identify 2 types of losses for which “Special Limits of Insurance” are provided
- property damaged by any insured peril:
2. property stolen or lost
Special Limits of Insurance for property damaged by any insured peril
- business property ($2000 max)
- securities ($2000 max)
- student’s property when temporarily away from home ($2500 max)
- money ($200 max)
- garden tractors and accessories ($5000 max)
- watercraft and accessories ($1000 max)
- computer software ($2500 max)
- spare car parts ($1000 max)s
Special Limits of Insurance for property stolen or lost
- jewelry, watches, gems, furs ($2000 max)
- coin/coin collection ($200 max)
- manuscripts and stamps ($1000 max)
- card collections ($1000 max)
- bicycles and equipment ($500 max)
Identify 2 coverages provided under Coverage D - Additional Living Expense
- additional living expense: covers extra expense to maintain normal standards of living due to necessary relocation after home damaged by insured peril (ie. lodging, moving, meals, kennel)
- fair rental value: pays lost rental income
- pays up when denied access by civil order due to dangerous condition caused by insured peril from outside the premises
State the basis of claim payment under Coverage D - Additional Living Expense
payment is limited to those costs “over and above” what it would normally have cost the insureds to live had the loss not occurred
3 types of Homeowners Insurance
- Basic
- Broad
- Comprehensive
