Dwelling and Homeowners Flashcards
P & C
What are the four main components/concerns to consider when you purchase a property policy?
Structure, Personal Property, Loss of Use, and Liability
What is structure?
Rebuild, repair, or replace the walls and roof of the house, shed, or other structures on the property.
What is personal property?
Repair or replace personal belongings (ex. clothing and furniture)
What is loss of use?
Pays for missed rent income* and/or additional cost of living while a property is unable to be used following a peril.
** Called Fair Rental Value on Dwelling Policies
What is liability?
Pays if someone was hurt on the premise, or actions of the insured off the premise.
What determines which components the insurance will allow in the policy?
Depends on the type of property (house, rental, commercial building, etc.) and how it is used (residential or business)
What are the two types of losses that a property owner can be exposed to?
Direct Loss and Indirect Loss
What are direct losses?
are ones that cause direct physical damage to the property
What are indirect losses?
This is the loss that is lost due to the direct lost.
When is an indirect loss covered?
Only if the Direct Loss is covered
What is always excluded on dwelling/homeowners?
Flood
What type of loss is sometimes called Consequential Losses and what are they about?
Indirect losses and they are about time and money
What is proximate causes of loss included in?
Direct Losses
What is a proximate cause of loss?
Are damages that occur separately, but next to, close to the direct loss.
What is the most common proximate cause of loss?
Is wet walls/furniture that are a result of the fire dept. putting out a fire.
What peril is covered on ALL property policies?
Fire
What is a peril that is ALWAYS EXCLUDED?
Outside water coming into the property.
In what two wats will insurance companies protect properties?
Named Peril or Open Peril
What is a peril?
is the CAUSE of loss, the events that happen, that lead to the destruction of the property/bodily injury. Such as fire or accidental injury.
-These are things you are either covered for or not covered for
What is a named peril?
A peril that says “only this is covered” This peril policy lists out the perils that are covered. In order for this policy to cover the peril it MUST be listed on the policy.
What different levels is a named peril policy offered at?
Basic or Broad
What is an open peril policy?
This peril policy says “anything BUT this is covered”. Everything is covered UNLESS it is listed as excluded. Is referred to as a “all risk” policy since it will cover all risks not excluded.
What are the two types of open peril policies?
Special and Comprehensive Policies belong to this peril
What is a covered peril?
is what TRIGGERS a policy to provide coverage.
What is coverage?
describes two things: what building/thing is covered and for how much money. Property policies usually have the same type of this, it’s the PERILS covered that makes policies different from each other.
What categories do policies break further down into?
“Major Coverages” and ““Additional/Supplementary Coverages”
How are the Main Coverages identified?
Coverage A, Coverage B, etc
What are additional or supplementary coverages?
These coverages are seen as extensions to the major coverages. These coverages complement the major coverages and are built into the premium.
What is the ultimate key difference between a Homeowners and Dwelling Policy?
The key difference is whether the house is “owner occupied” or not
What does owner occupied mean?
Means the owner of the house/policy resides in the house.
What policy requires that the owner of the home is occupying the residence?
Homeowners
What concerns does a Homeowners policy include?
All four main property concerns: Structure (walls & roof), personal property, loss of use, and owner liabilty
What concerns does a dwelling policy include?
Comes standard with Structure (walls & roof) and loss of use.
-Personal Property & Liability can be purchased for an additional premium
