Household Insurance Flashcards
What is Household insurance?
A household insurance policy is bought by householders to provide protection for both the building itself and its contents.
How can this cover can be bought?
As one all-inclusive policy, but buildings cover and contents cover can also be bought as separate policies.
Question 2.3
A tenant who rents a property may only require contents insurance, because they have no insurable interest in the building.
True
What is a standard household policy?
No such thing as a ‘standard’ household policy, both cover and wordings vary depending on the customer’s choice and the cover offered by particular insurers.
What is building insurance?
Not only the main structure of the building, but also garages, sheds, greenhouses, outbuildings, swimming pools, tennis courts etc.
Anything you would normally leave behind on moving from the house is part of the building, e.g. double glazing, fitted kitchens and bathrooms.
True
building insurance
Fire, lightning, explosion and earthquake is covered
True
building insurance
Which cover USUALLY excludes loss or damage if the building is unoccupied for more than 30 or 60 days,
Riot civil commotion strikes Labour or political disturbances.
Malicious damage is USUALLY subject to an excess
True
building insurance
Storm or flood: USUALLY subject to an excess
True
building insurance
Damage to walls, gates, fences or hedges will be excluded.
True
building insurance
An unoccupied exclusion (30 or 60 days) and with an excess?
Escape of water or escape of oil, theft or attempted theft.
Impact
Collision into, or impact of, road vehicles, animals, aircraft (or other aerial devices) and things dropped from them.
Damage caused by pets are usually excluded
True
building insurance
Subsidence, ground heave or landslip Usually with a large excess. In the region of £1,000
True
building insurance
(Subsidence is the movement of the land on which the building stands due to movements in underground workings, e.g. mines.
true
Ground heave results when previously dry ground suddenly takes in water and swells, e.g. after a drought. Landslip is a small landslide).
true
Breakage or collapse of television or radio receiving aerials, aerial fittings and masts.
True
building insurance
Not damage to the aerials themselves which are covered by contents policy.
TRUE
Accidental damage to drains, pipes, cables or underground pipes.
True
building insurance
Accidental breakage of glass and sanitary fixtures
True
building insurance
The unfurnished unoccupied exclusion applies in accidental breakage of glass and sanitary fittings.
True
building insurance
Legal fees, architects’ and surveyors’ fees, cost of debris removal. Which are Incurred whilst reinstating the building after suffering loss or damage.
True
building insurance
Loss of Rent
covers rent (amounts payable by a leaseholder to the owner of the freehold) for a maximum period of two years and loss of rent for any part of the premises not occupied by the insured which has become uninhabitable.
What does loss of rent also cover?
It also covers the reasonable cost of alternative but similar accommodation while the premises are uninhabitable as a result of an insured peril.
What is the limit of building sum insured?
A limit of 10%–15% of the buildings sum insured applies.
Loss of rent.
True
building insurance
Which is an optional extension?
Accidental Damage
Fire, lightning, explosion and earthquake is covered.
True
building insurance
Riot, civil commotion, strikes, labour or political disturbances, malicious damage or vandalism:
Cover usually excludes loss or damage if the building is unoccupied for more than 30 or 60 days, malicious damage is USUALLY subject to an excess.
Storm or flood?
Cover under this heading specifically excludes damage caused by frost, subsidence, ground heave or landslip and damage to fences or hedges, and is USUALLY subject to an excess.
Escape of water ?
This covers the bursting (for example, as a result
of freezing) or overflowing of water tanks, apparatus or pipes, and includes any fixed domestic equipment:
Escape of water excludes ?
Cover excludes damage while the building is unfurnished or unoccupied for more than a certain period (30 or 60 days) and an excess is sometimes imposed, although this may be removed subject to an ADDITIONAL PREMIUM.
Which household insurance policy excess can be removed with additional premium?
Escape of water
Escape of oil ?
Damage caused by escape of oil from any fixed oil-fired heating system is covered and an unfurnished/unoccupied exclusion applies (30 or 60 days).
Theft or attempted theft?
Cover is USUALLY excluded while the premises are left unfurnished or unoccupied for more than 30 or 60 days.
Impact?
Cover is in respect of impact or collision with aircraft or other aerial devices, or articles dropped therefrom, road vehicles, or animals.
There may be an excess imposed for the insured’s or their family’s vehicles or animals.
Damage caused by pets is USUALLY excluded.
Subsidence, ground heave or landslip ?
Various exclusions will apply together with a large excess in the region of £1,000.
Subsidence refers to ?
The downward movement of land on which buildings stand, usually because of changes in the ground moisture.
Ground heave is
When the ground swells and heaves after the moisture content of the soil increases.
Landslip is the falling away of land, for example, after prolonged heavy rain.
TRUE
BUILDINGS INSURANCE
Breakage or collapse of television or radio receiving aerials, aerial fittings and masts??
This covers damage to the building caused by the collapse of the aerials, but NOT damage to the aerial itself which is usually covered under the contents section.
Accidental damage to drains, pipes, cables or underground pipes ?
Covers accidental damage to water, oil, gas, sewage and drain pipes, underground telephone, television and electricity cables serving the building.
Accidental breakage of glass and sanitary fixtures :
Covers accidental breakage of fixed glass in windows, doors, fanlights and skylights or greenhouses, conservatories and verandas forming part of the building.
It ALSO covers accidental breakage of fixed wash basins, cisterns, baths and other sanitary fittings.
Accidental breakage of glass and sanitary fixtures : The unfurnished/unoccupied exclusion applies. ??
True
BUILDINGS INSURANCE
Legal fees, architects’ and surveyors’ fees, cost of debris removal. ??
Covers reasonable legal fees and architects’ and surveyors’ fees necessarily incurred in the reinstatement of the building following loss or damage.
The costs of demolition or shoring up the building and debris removal are ALSO covered.
Legal fees, architects’ and surveyors’ fees, cost of debris removal, the Cover excludes any costs involved in preparing the insured’s claim. ??
True
BUILDINGS INSURANCE
Loss of rent?
This provides cover in respect of ground rent (amounts payable by a leaseholder to the owner of the freehold) for a maximum period of two years and loss of rent for any part of the premises not occupied by the insured which has become uninhabitable.
Loss of rent . It ALSO covers the reasonable cost of alternative but similar accommodation while the premises are uninhabitable as a result of an insured peril. ??
True
A limit of 10%–15% of the buildings sum insured applies.
True
Household policy= Contents insurance
Accidental damage
USUALLY as an optional extension (this would include, for example, damage caused by putting your foot through the floor of the loft into the bedroom below, or damage caused during DIY such as
putting a nail through a water pipe).
What is Contents insurance?
‘Contents’ means household goods and personal effects of every description that belong to the insured or to a member of the family living in the property.
What do contents include?
It includes cash and stamps (that are not part of a collection) USUALLY up to £250, and any fixtures and fittings belonging to the insured.
The risks covered are essentially the same as for buildings insurance, but with the following differences
True…
Contents insurance is similar to Buildings insurance with the following differences…