Habitual Insurance (Word Problems) Flashcards
Understanding Habitual (Home) Insurance via word problems.
If you go away on vacation and there is a loss caused by freezing pipes in your basement, are you covered?
Only if a competent person enters the dwelling each day or water supply has been shut off and all pipes drained.
If a civil authority prohibits access to your premises due to damages to neighboring premises, are you covered?
Yes, for 14 days.
What is the maximum amount the Comprehensive Homeowner Policy will pay for the fire damage to a tree?
$500 per tree.
Until what age is a student living away from home considered an insured under their parent’s policy?
No limit.
Are you required to pay a deductible on items where a special limit applies?
Yes, off of the total loss.
How much is unscheduled watercraft covered for in the event it burns in a boathouse fire?
$1,000.
If your friend moves in to share the cost of your apartment, is his/her contents covered under your policy?
No.
How much are bicycles covered for if they are burned in a fire?
Their full value.
If there is more than one policy covering a house, how would a loss be settled?
Each contributes its rateable proportion.
If the Condominium Corporation’s insurance policy is invalid or inadequate, how much will the Condominium Unit Owner Policy pay for damage to common areas that you get assessed for?
$10,000.
Is there coverage for contents while moving? If so, how long and at what locations?
Yes, 30 days while in transit to and at another location within Canada to be occupied by you as your principal residence.
What three perils drop off as soon as a building is vacant?
Water damage, vandalism, and glass breakage.
When does all coverage drop off on a vacant dwelling?
After 30 days.
What coverage of the Homeowner Policy covers in-ground swimming pools?
Coverage A.
To repair an old air conditioner, walls have to be torn out. Would this be covered by the Homeowner Policy?
No, has to result from an insured peril.
If an insured chooses not to rebuild on the same location, what would be the Basis of Claim Payment?
Actual cash value.
When do the special limits for items 1-8 apply?
Always.
In what instances must the authorities be notified before a property claim can be submitted to an insurer?
Malicious acts, burglary, robbery, and theft or attempted theft.
Where are building materials slated for renovations covered?
On or adjacent to the premises.
How much are Tenant’s improvements and betterments insured for?
No limit.
What is the maximum amount payable under the Credit or Debits Cards Extension?
$2,000 aggregate.
