Forms and types of homeowner policies Flashcards
H-02
Broad forms covers broad perils , owner occupant, covers BIG AFFECT burglary, ice sleet and snow, glass breakage , accidental discharge of water or steam , freezing objects , falling objects , electrical currents, collapse , tearing asunder (sudden accidental tearing apart)
HO-3
Special forms - owner occupant. Most exclusive open peril coverage on dwelling and structures excluded perils intentional damage ,
BASIC PERILS ( BASIC BITCHES )
FIRE , LIGHTENING , INTERNAL EXPLOSIONS ( EXPLOSIONS INSIDE A COVERED LOCATION
EXTENDED COVERAGE EC PERILS - INCLUDED IN MOST STATE PLOCIES
WCSHAVVER :
WIND, CIVIL COMMOTION , SMOKE , HAIL , AIRCRAFT, VEHICLES , VOLCANIC ERUPTION, EXPLOSION, RIOT , & VMM VANDALISM AND MALICIOUS MISCHIEF ,
BROAD PERILS - AKA NAMED PERIL COVERAGE - LIST WHAT IS COVERED
ALL BASIC FORM PERIL ( basic bitches included , fire lightnening , internal explosion, + EC extended coverage WCSGAVVER V&MM + BIG AFFECT
BIG AFFECT = BURGLARY DAMAGE , WT OF ICE SLEET SNOW, GLASS BREAKAGE , ACCIDENTAL DISCHARGE OF WATER WITHIN PLUMBING FREEZING OBJECTS FALLING OBJECTS, ELECTRICAL CURRENT COLLAPSE , TEARING ASUNDER
SPECIAL PERILS (OPEN) ERRRTHANGGG , UNLESS I SAY NAH
coverage insures against all risks of direct physical loss , unless they specifically are excluded.
NAH NAH NAH NAH : flooding, earthquake , intentional damage caused by insured , losses due to enforcement of building codes, damage caused by power interruption occurring off premises, gov seizers,
HO-4 - TENANTS OR RENTERS
FOR RENT/ PERSONAL PROPERTY
HO-5
COMPREHENSIVE FORM ; OWNER OCCUPANT/ BEST
HO-6
CONDOMINIUM CONDO OWNERS- WALLS IN , CIELING /WALL.FLOORS AND PERSONAL PROPERTY
HO-8
MODIFIED FORM FOR SPECIAL RISKS ( OLDER HOMES / MODIFICATIONS.
DWELLING POLICIES
DP-1, BASIC FORM
DP-2 , BROAD FORM
DP-3 , SPELCIAL FORM
DP-1 - ALL THE BASIC BITCHES AUTOMATICALLY INSURED FIRE (unfriendly fire, friendly fire not covered )
lightening ( natural electrictiy )
internal explosion ( furnace , stove, hot water heater INSIDE DWELLING)
FOR ADDITIONAL PREMIUM. EC- WCSHAVVER AND V&MM
DP-2 - ALL THE BASIC BITCHES PLUS… BIG AFFECT :
basic ( fire, lightening, intenral explosion,
exclusions , WT OF SNOW AND ICE FALLING OBJECTS, NOT COVERED on awnings , fences, patios, swimming pools, docks, retaining walls , accidental dischage of water FROM CONTINOUS LEAKS / flood . burglary from vacant 60 days buildings.
DP- 3 - RISK OF DIRECT PHYSICAL LOST ARE COVERED! -OPEN - DWELLING AND OTHER STRUCTURES ;;;;; EXCLUDES, intentional damage, theft, freezing of plumbing if unoccupied and care not taken , wear and tear, foundations.
COMMERCIAL LINES
COMMERCIAL PACKAGE POLICYS (CPP)
BEGINS WITH COVERAGE FOR PROPERTY / GENERAL LIABILITY INSURANCE AND THEN OTHER FORMS OF INSURANCE ARE ADDED ON TO CREATE A “BUNDLE”
ELIGIBLE COVERGES : building and personal property, builders risk, condominium association, condominium commercial unit owners, business income , extra expense, COMMERCIAL INLAND MARINE, COMMERCIAL CASUALTY FORMS. commerical auto, general liability, crime, farm liabiity,
CPP - CANNOT INCLUDE : workers comp, life insurance , health and disability insurance , certain types of professional liability , CPP MUST INCLUDE AT LEAST ONE PROPERTY COVERAGE AND ONE CASUALTY COVERAGE.
COMMERCIAL PROPERTY
BUSINESSES NEED: PROPERTY INSURANCE ( coverage on real property, office buildings, factories, warehouses,
NEED: INSURANCE ON BUSINESS PERSONAL PROPERTY examples. fixtures , machinery, inventory, machinery.
COMMERICAL PROPERTY…
MUST INCLUDE: COMMERIAL PROPERTY DECLARATIONS FORM
COMMERCIAL PROPERTY CONDITIONS FORM, ONE OR MORE COMMERCIAL PROPERTY COVERAGE FORMS. - CAUSES AND LOSS FORM. & MANDATORY ENDORSEMENTS.
COMMERCIAL PROPERTY DECLARATIONS FORM
PROVIDES ADDTIONAL INFORMATION ABOUT THE PREMISES BEING INSURED & THE SPECIFIC PROPERTY FORMS THAT WILL APPLY.
NAME / ADDRESS OF ANY MORTGAGE LEIN HOLDERS
COMMERCIAL PROPERTY COVERAGE FORMS
DESCRIBES SPECIFIC COVERAGES BEING PROVIDED TO THE BUSINESS
DEFINES PROPERTY IS COVERED, WHT PROP IS NOT COVERED, HOW LIMITS AND DEDUCTIBLES APPLY, WHT SPECIAL CONDITIONS APPLY.
can be added; building & personal property , builders risk , condo association, condominium commercial unit owner, business income with extra expense, legal liability ( considered property insurance . )
Commercial building & Business personal property form.
- most commonly purchased form.
- core of the commercial property coverage part, the building and personal property coverage
COVERS buildings, the insureds business personal property, the personal property of others located at the buisness premises, COVERAGE IS ONLY provided for coverages that have a limit of insurance shown in the declarations.
INCLUDES; completed additions, fixtures, (including outdoor) , personal property used to maintain the premise, fire extinguishers, outdoor furniture, floor coverings, certain appliances,
WITHIN 100 FT OF PREMISE additions under construction and alterations or repairs to the building materials, equipment, supplies
business personal property: covered while it is in the building , in the open or in a vehicle within 100 ft of premise. (includes furniture, fixtures, machinery, equipment, stock. value of labor + parts, if insured is a tenant the improvements + betterments added by insured, leased personal prop
not covered in BUIDLING AND PERSONAL PROPERTY COVERAGE FORM
money accounts, food stamps, notes, securities, animals unless they are boarded or held for sale , autos for sale , bridges, roads, walks, patios, other paved surfaces. conraband, cost of excavations other groud prep. bulkheads, underground pipes and drains, watercrafts and air crafts lic for public use, the follwoing while outside buildings except as provided in coverage extensions ( fences, antennas, signs that are not attached, trees shrubs, plants.
CAUSES OF LOSS FORMS ( BBS)
..LIST THE PERILS THT THE PROPERTY IS INSURED AGAINST, 3 forms.
- BASIC - CP1
- BROAD - CP2
- SPECIAL- CP3 ( OPEN)
BUSINESS INCOME (BUISNESS INCOME COVERAGE FORM)
PAY FOR LOSS OF INCOME THAT THE INSURED SUSTAINS DUE TO A DIRECT PHYSICAL LOSS FROM A PERIL INSURED AGAINST THT FORCES THE INSURED TI SUSPEND OPERATIONS DURING RESTORATION.
RESTERATION BEGINS: date of direct physical loss, ends when property can be repaird/rebuilt/replaced. time element coverage: coverage for the loss of business income over a period of time tht resulted in direct physical loss , net income//continuing normal operations. payroll.
extra expense: COVERAGE FOR A BUISNESS THT MUST CONTINUE AT ALL COST (; NEWSPAPER, BANK)
the coverage that reimburses the insured for expenses incurred to keep a business going after a loss caused by a covered peril.
BUSINESS INCOME with extra expense coverage form - includes extra expense coverage tht reimburses the insured for money spent to avoid or minimize business shut down. (covers expenses the insured would not have incurred if the property had not been damaged) BANK MOVE TO TEMP LOCATION
BUSINESS INCOME WITHOUT extra expense coverage form: replaces the extra expense coverage with EXPENSES TO REDUCE LOSS COVERAGE , ( without extra expense don’t need coverage , ex restaurant closes and then repens.
equipment breakdown “
means the following types of direct loss, that cause damage to covered equipment, requiring the equipment’s repair or replacement
COVERS” FAILURE or pressure / vacuum equipment, mechanical failure including rupture or bursting caused by centrifugal force, electrical failure, including arcing,
NOT A MAINTENANCE POLICY: does not include,,, malfunction, defects leakage, damage to any vacumm TUBE, GLASS TUBE OR BRUSH, damage to any structure or foundation supporting the covered equipment or any of its parts, , cracking of any part of an internal combustion. gas turbine
BUSINESS OWNERS POLCIY (BOP)
MOM AND POP (SMALL - MED SIZED BUSINESS) less than 100 employees
- 6 million or less in revenue
business occupying 35,000 square feet.
COMPLEX CPP .. SIMILAR TO THE HOMEOWNERS ( HO) POLICY for individuals in that property, liability and other coverages are automatically included. additional coverages can be added for small premium.
Builders risk
- personal inland marine forms. - BRAODER COVERAGE FOR PERSONAL PROPERTY , inland marine insurance originally developed from ocean marine insurance
ocean marine insurance - provides coverage for property being transported over water.
inland marine insurance- same type of broad, flexible, coverage for personal portable property ON LAND (INLAND) AKA FLOATERS.
2 MOST COMMONLY USED PERSONAL INLAND MARINE FORMS ARE
PERSONAL ARTICLES/ PERSONAL EFFECTS
PERSONAL INLAND MARINE FLOATERS PROVIDE OPEN PERIL COVERAGE , FEW EXCLUSIONS , war, nuclear hazard wear and tear graudual deteriotation , insects, vermin and inherent vice
inland marine insurance :
coverage for property and merchandise while in transit or floating.
valuable papers, and documents,, as well as mobile equipment and other supplies are covered by these types of policies ,
generally borader. property held by bailee , actually in transit , at a fixed location that is an instrument of transportation, movable good that is often at different locations.
personal articles form:
provides coverage for nine optional classes of personal property same as scheduled personal property in homeowners.
- jewelry, furs, cameras, musical instruments, silverware, golf equipment, fine arts, stamps and coins. appraisal may be required,
pair set: insurance will not be liable for entire value of set when only part of it is damaged.
auto coverage / jewlerry /furs/camaras/music instruments/ fine art.
coverage for 30 days BUT FINE ART IS 90 DAYS 25% of applicable insurance limit 10k or whichever is less.
personal articles floaters
aka travelers baggage- ensure belongings while traveling
commercial property floaters
nationwide definition: laid out what types of property were eligible for inland , marine insurance coverage. 6 categories of eligible marine risks .
IMPORTS, EXPORTS»» ( OCEAN MARINE INSURANCE )
INLAND MARINE
PERSONAL FLOATERS. DOMESTIC SHIPMENTS, INSTRamentalities of transportation or communication, commercial property floaters risk
NATIONAL FLOOD INSURANCE PROGRAM
NATIONAL FLOOD INSURANCE PROGRAM ( NFIP ) TO MAKE FLOOD INSURNACE AVAIABLE TO ELIGIBLE COMMUNITIES THROUGH FEDERAL SUBSIDATION. »_space;>managed by»_space;> FEMA - federal emergency managment agency.
- communities voluntarily apply
personal lines - casualty
umbrella insurance : liability insrance tjat os om excess of specified other policies - potentially for insurance for losses not covered by other policies. WHEN INSURER NEEDS HIGHT LIMITS OF LIABILITY COVERAGE THAT IS NOT COVERED BY AUTO OR HOMEOWNERS.
SIR = SELF - INSURED RETENTION , AMOUNT OF LOSS THE INSURED MUST COVER OUT OF POCKET. DOES NOT APPLY TO UMBRELLA POLICY ACTING AS EXESS COVERAGE TO
EARTHQUAKE
casuses of loss
NONE OF THE COVERED LOSS COVER EARTHQUAKE OR VOLCANIC ERUPTION ( land movement ) they need to be added by endorsement in conjuction with cause of loss form
- volcanic eruption: eruption , explosion, effusion of a volcano. within 168 hour period single earthquake or volcanic eruption.
MOBILE HOMES
- PERMANTLY PLACED ON FOUNDATIONS ARE ELIGIBLE
HO-4 FORMS CAN USED TO COVER THE CONTENTS OF A MOBLE HOME but NOT FOR MOBILE HOME ITESELF
separate MOBILE HOME PACKAGE POLICY
IN ADDITION TO MOBILE HOME ENDORSEMENT can be attached to HO-2 , OR HO-3 to modify coverage of mobile homeowners.
- up to 10% of coverage can be extended to cover other structures. personal property reduced to 40% and dwelling is 50% of HOME OWNERS POLICY
loss of use 20% ( 30% in homeowners )
watercraft
limited coverage
homeowners: will pay up to 1500 if something happens to boat while in your house
3 catagories
BOATS LESS THAN 26FT
YACHTS : 26FT OR GREATER
PERSONAL WATERCRAFT: JET SKIS , RUNNERS, OTHER PERSONAL WATERCRAFT
liability covered is excluded for boats with motors of more than specified horsepower or boats of more than specified length. . usually need to get inland marine insurance forms , ocean marine policies or specialized policies
COMBINE PROPERTY/MEDICAL/LIABILITY losses paid: ACTUAL CASH VALUE. personal use boats only
