Dwelling and Homeowners Flashcards
Friendly Fire
a fire started intentionally to do a job which is under control and in an intended area (fire place)
unfriendly fire (hostile fire)
a fire you did not start intentionally or a friendly fire which is no longer doing what it was intended to do
Different Perils
Fire - fire and lightning
E.C. - wind, civil commotion, smoke, hail, aircraft, vehicles, explosion, riot
V &MM - vandalism, malicious mischief
Dwelling
owner or non-owner occupied 1-4 units
DP-1 (Basic / Named Peril)
Fire, E.C. and V&MM
DP-2 (Broad / Named Peril)
Fire, E.C. and V&MM + damage by burglary, falling objects, weight of ice/snow/sleet, artificial electricity, accidental discharge, tearing furnace/ac, freezing plumbing, glass breakage
DP-3 (Special / Open Peril)
Open to all perils except for whatever exclusions are included in policy
Dwelling details:
none of the fire forms provide THEFT coverage (needs to be added with Broad Theft Endorsement only for owner occupied)
Also, does not provide liability coverage (personal liability supplement endorsement available)
What type of peril coverage is afforded for contents if contents coverage purchased?
DP-1: dwelling = basic, contents = basic
DP-2: dwelling = broad, contents = broad
DP-3: dwelling = special, contents = broad
Dwelling fire forms do not allow:
Replacement cost on contents to be endorsed
Automatic Dwelling Coverage (DP-1 & DP-2)
a. Dwelling (anything permanently attached to the building)
- you pick the amount, replacement cost
b. Other structures (another structure seperated by clear space from original dwelling)
- 10% of coverage A
c. Personal property (contents, movable personal property)
- not unless you select it
d. Fair Rental Value (loss of rentail income due to a covered loss)
- 10% of coverage A
e. Additional living expense (additional costs incurred to stay somewhere else and eat out until can get back into home
- 10% of coverage A
Homeowners
owner occupied residential 1-4 units (owner must occupy at least 25%)
HO-1 (Basic)
Fire, E.C., V&MM, Theft, Glass Breakage, Volcano
HO-2 (Broad)
Fire, E.C., V&MM, Theft, Glass Breakage, Volcano, Damage by burglary, falling objects, weight of ice/snow, artificial electricity, accidental discharge, tearing furnace/ac. freezing of plumbing
HO-3 (Special)
Open perils unless excluded
What type of peril coverage is afforded for contents?
HO-1: dwelling = basic, contents = basic
HO-2: dwelling = broad, contents = broad
HO-3: dwelling = special, contents = broad
HO-5: dwelling = special, contents = open
HO-4/6: dwelling = n/a, contents = broad
HO-8: dwelling = basic, contents = basic
What cost does HO-8 settle at vs all other HO’s?
HO-8 settles at repair cost or AVC on the structure. All other Homeowners forms are Replacement value
HO-8 (functional replacement cost)
typically used on older homes, for example have woodwork that would be difficult to replace today or for homes that would not be rebuilt
Limited Fungi, Wet or Dry Rot or Bacteria Coverage Endorsment
applies only when the fungi or rot result from a covered peril (pipe burst, water to put out fire). Covers cost to remove fungi, tear out and replace damaged parts of the building, test air
Following coverages are automatically included in a Homeowner’s Policy (the dwelling is replacement cost as long as insured to at least 80% of replacement value, if not automatically becomes AVC)
a. Dwelling
- replacement cost
b. Other Structures
- 10% of A
c. Personal Property
- 50% of A
d. Loss of Use (combines loss of rental income and additional living expense)
- 30% of A
e. Personal Liability
- $100,000 per occurence
f. Medical Payments
- $1,000 per person
Liability for HO policy
1) conditions of the premises
2) personal actions of insured (negligent actions not intentional)
3) includes coverage for golf carts
Medical payments for HO policy
1) doesn’t pay med bills to insured
2) can occur on or away from premises
3) expenses occurred within 3 years
How much is allocated for fire department under HO policy?
$500
HO policy has certain types of personal property limits to a specific dollar amount:
Money = $200 Watercraft = $1500 Trailers = $1500
The following are limited only for the peril of theft under a HO policy:
Jewelry, fur, watches = $1500
Silverware = $2500
Guns = $2500
Personal Articles Floater (endorsement on HO)
Benefits:
1) all risk coverage
2) stated amount
3) world wide coverage (expect fine arts)
4) no deductible
Home Day Care liability (endorsement on HO)
Endorsed on, extra cost
Drones (under HO policy)
used for personal use are covered as personal property. when used legally, liability is covered under personal liability
Backup of sewer/sump pump discharge
if insured purchased the coverage, the water back up endorsement applies to the sewage as well as water itself. If caused by a flood, this would not be covered.
Mobile Home Insurance (think HO-3)
a. Dwelling (structure itself and anything permanently attached - including LP tanks)
- value of mobile home
b. Other structures (separated by clear space from the original structure)
- 10% of A
c. Personal Property (movable contents)
- ACV
d. Loss of Use (combines living expense and loss of rents)
- 30% of A
Additional coverage for mobile home:
$500 for reasonable expenses incurred in removing and returning a mobile home threatened by a Covered Peril
Endorsements to add to Mobile home policy
AVC transportation/permission to move
- covers wanting to move the mobile home
- covers while mobile home is being moved
Mobile home has what type of peril power?
Open perils
What qualifies a mobile home?
- not a pop up campers
- not RV
- not tent
- needs to be (portable (tied down to foundation), year round living, at least 10’x40’ (400 sq ft)
HO-1 Basic
Basic perils dwelling & contents
Owner occupied home
HO-2 Broad
Broad form perils dwelling & contents
Owner occupied home
HO-3 Special
open perils dwelling & broad form perils contents
owner occupied home
Ho-4 Renters
No Dwelling coverage & Broad form contents
HO-5
Open Perils dwelling & contents
owner occupied home
HO-6 Condo
$1,000 dwelling
Broad form perils dwelling & contents
HO-8
Functional replacement cost - older home
Who is the primary insurer of flood insurance?
Federal Government
What is the minimum deductible for flood insurance?
$1000 (applies separately to building and contents)
Maximum coverage of building and contents for Flood insurance?
$250,000 on building and $100,000 on contents
Waiting period for flood ins?
30 days
Is sewer backup included in flood ins?
no it is excluded
Earthquake peril endorsement
provides protection against earthquake and volcanic eruption
What is the time period for earthquake shocks to happen within in for residential and commercial property
Residential = 72 hours Commercial = 168 hours
Earthquake insurance deductible?
% of the dwelling/building coverage and applies separately to each building and the contents of that building
Watercraft can be covered under 3 types of policies:
1) homeowner’s
2) boat-owner’s
3) yacht
Homeowner’s policy auto provides coverage for watercraft furnishings, trailers, equipment and outboards up to:
$1500
Wind and hail peril are only covered if boat was in a fully enclosed building
Theft is only covered if ON the premises
Liability is auto protected for watercraft with less than 25 horsepower and less than 26 ft long
Boat-owner’s policy
boat = permanently attached equipment
loss settled at ACV
Medical payments included in liability (can add underinsured boaters BI)
In order for a replacement boat to be covered by policy, you must notify insurance company within 45 days
Yacht Policy
is an Ocean marine contract
- covers inboard boats/larger sailboats
- open peril
- repairs are replacement cost basis
- coverage for hull includes: masts, ropes, navigation equip, and tenders
Watercraft exclusions
not covered while:
- carrying people or property for a fee
- loss caused while racing
- war & nuclear
- Workers Comp
