Home Owners Flashcards
Homeowners Policy
Homeowners insurance is a type of property insurance that covers private homes, personal possessions, and other liabilities of a homeowner or home renter.
Policy Perido ends..
For all Homeowner Insurance policies coverage expires at 12:01 am after the last day of the covered term. So if your policy goes through March 22nd, 2011 then it officially expires at 12:01 am on March 23rd.
Homeowners Policy protect…
Owner- occupants of 1 to 4 family dwellings;
Renters in any type of structure;
Condominium owners.
Package policy incuding
Property coverage, including dwellings and personal property.
Personal liability coverage, to protect the insured from damages / injury caused to others.
Medical payments coverage ( a no-fault medical expense coverage.)
Additional living expenses incurred because of damage to an insured property (i.e hotel expenses.)
REPLACEMENT COST VALUATION (RCV)
The replacement value (RCV) of your home is the cost to replace your home and possessions at current prices, and at similar quality.
A Homeowners policy may have RCV, ACV or both types of coverage, depending on the policy and/or endorsements.
Actual Cash Value
The Actual Cash Value (ACV) of your home is the replacement cost of the home and / or possessions minus depreciation.
CANCELLATION RULES
Insurance companies cannot cancel a policy that has been in force for more than 60 days except:
If you fail to pay the premium.
You have committed fraud or made serious misrepresentations on your application.
DECLARATIONS PAGE
the name of the insured the location of the insured property the policy period the coverages applicable to the policy, along with the premiums and the limits of coverage of each the deductible applicable to the policy
HO 1 FORM
A very basic coverage form protecting against the perils of fire and lightning only.
HO 2 FORM
Fire, lightning, explosions, windstorm and hail, theft, smoke damage, vandalism, malicious mischief, building collapse, freezing or accidental discharge of water or steam from plumbing heating, or air conditioning, falling objects, weight of snow, sleet or ice, rupture and bursting of pipes and and hot water heating systems.
HO 3 FORM
An open-peril policy covering all damages and causes of loss except for those specifically listed on the exclusions page.
HO 4 FORM
It provides insurance protection for personal property as well as medical payment coverage, liability coverage and loss-of-use (ALE- additional living expenses) coverage. HO-4 Form provides named peril coverage as listed under the HO-2 Form.
HO 6 FORM
provides condominium owners additional protection not provided by a condo association policy. Provides insurance protection for personal property as well as liability protection.
HO 8 FORM
HO-8 Form provides insurance coverage for older homes, with the special provision that in the event of damage or loss, the insurance company will replace damaged property with current, modern materials of like kind and quality.
6 COVERAGES OF HOMEOWNER POLICY
Coverage A -Dwelling coverage Coverage B - Other Structures Coverage C - Personal Possessions Coverage D -Loss of Use Coverage E - Liability Medical Payments
Home Owners EXCLUSIONS
Earthquakes and earth movements, such as landslides or mudflows.
Water damage, including floods, sewage back-up and water seeping through the foundation.
War.
Nuclear hazards.
Governmental actions.
Intentional losses.
Neglect to use reasonable means in preserving property.
Personal Property Limitations
Gold, silver or other bullion- $500 per occurrence.
Securites, stamps, and other valuable paper instruments- $500 per occurrence.
Jewelry/ watches- $500 per occurrence if by theft or mysterious disappearance.
Furs- $500 per occurrence if by theft or mysterious disappearance.
Cash- $200 per occurrence
Coverage E Liability Coverage
Each homeowners policy offers $100,000 worth of liability coverage per occurrence, but homeowners can opt to purchase more coverage as they see fit.
Liability protection can protect a homeowner from:
Bodily injury or property damage caused to other people while on the insured’s property.
Bodily injury or property damage caused to other people off the insured premises by the insured party.
Coverage F- Medical Payments Coverage
Medical payment coverage is a “no-fault” coverage included in a homeowners insurance policy that pays for:
injuries to individuals while on your property.
injuries to individuals that happen off-property that the insured is liable for. This can include injuries caused by pets or domestic employees.
Coverage F is limited to $1,000 per occurrence.
ADDITIONAL COVERAGES
Removal of Debris Fire Department Reasonable Repairs Coverage Property Removal Expense Coverage Tree and Shrub Coverage Consequential Losses Coverage Forgery / Credit Card Fraud
Homeowners Insurance - Cancellation
The State requires insurers provide 90 days advance written notice to cancel a policy, and must explain their reasoning for canceling the policy. For non-payment of premium, insurers must only give 10 days notice.
Loss Settlement Valuations
Many policyholders elect to purchase an endorsement to change the loss settlement valuations on Coverage C- Personal Possessions from actual cash value to replacement cost.
Dwelling Policies
A dwelling policy is the most basic property insurance policy available.
A basic dwelling policy is a property-only insurance policy (does not include liability coverage or medical payments except by endorsement) generally sought by individuals who don’t need the variety of expanded coverages provided by a full homeowners insurance policy.
