home owners Flashcards
HO-2
basic perils + additional perils associated with falling objects, weight of ice, snow, sleet, accidental discharge or overflow of water, bursting of steam appliances or hot water systems, freezing an accidental damage caused by artificially generated electrical current
HO-3
Uses an “open perils” or “all risks” definition instead of listing the specific perils
HO-4
renters insurance
does not cover the dwelling
HO-5
comprehensive home owners insurance
provides personal property protection on an open perils, instead of a broad perils basis
HO-6
Condo Home owners insurance
covers the same perils as HO-2, but does not cover building coverage other than from additions or alterations.
HO-8
- latest form of homeowners insurance
- instead of providing replacement cost, it provides repair cost
- typically used for those that live in expensive homes
Section I of home owners coverage
Property Coverage A- Dwelling B- Other structures C- Personal Property D- Loss of use and additional living expenses
Section II of home owners coverage
Liability Coverage
E- Personal liability
F- Medical Payments
Section III of home owners coverage
Additional coverage options
- Flood insurance
- earthquake insurance
- additional coverages
All-risk policy
insurance company must provide evidence that the loss is not covered under the policy before it can be denied.
Burden of proof is on the insurer
Risks with a partial loss scenario
an insured could be paid less than the full loss amount due to coinsurance requirements.
basic coverage
protects the home ownder from losses associated with specifically named perils
broad coverage
provides protection for all of the named perils covered in basic coverage plus additional protection for names perils not covered.
open perils
cover any risk to the home that is not specifically excluded in the policy.
General Home Owner Exclusions
movement of ground ordinance or law-regulating construction, repair or demolition damage from rising water nuclear hazards war intentional acts neglect
Common Home Owner Perils
fire, theft, smoke, vandalism, explosions, hail, wind, damage from aircraft, volcanic eruption, riots and civil commotion, damage from vehicles
Components of Automobile insurance
A- liability
B- Medical coverage
C- uninsured and under-insured motorist coverage
D- coverage for damage to the insureds automobile
E- duties after an accident or loss
F- general provisions
PLUP
-Personal Liability Umbrella Plan
-an excess liability policy that covers liability in excess of the underlying liability coverage for home and auto policies
must have certain mins on coverage
-usually 1Mill coverage or more
-purpose if to protect the assets and earning power from levy and seizure in which the insured is held liable for damages to property or to persons
-if insured fails to maintain coverage as required by the umbrella policy, they will need to pay the difference out of pocket if a claim arises
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Product Liability examples
- manufacturing a harmful product
- selling a defective product
- packaging the product inappropriately
- providing insufficient directions or warnings for use
Scheduled Personal Property Endorsement
additional insurance protection.
when an endorsement is purchased, the additional amounts of insurance are listed in a schedule that specifies the dollar amounts of insurance for specified personal items attached to the homeowners policy
