Insurance Flashcards
What are the three types of insurance coverage?
Dwelling, Liability, Fidelity Bond Coverage
What does dwelling insurance cover?
Protection to help rebuild the structure of a home
What does Liability insurance cover?
Protection from lawsuits for negligence or events that could occur on the property. This is only required to be reviewed on a Master Policy.
What does Fidelity Bond Insurance cover?
Insures HOA for loses caused by dishonest, fraudulent acts of it’s employees. This is only required on properties with an HOA.
What are the three types of properties?
Single family, Condo, Planned Unit Development (PUD)
What are the three different types of policies?
HOI (Homeowner’s Insurance), HO-6, Master
What does an HOI policy cover?
single family residence
What does an HO-6 policy cover?
insures property within 4 walls of individual unit
What does a Master policy cover?
insures a building shared by multiple units - for the HOA
What is a declaration page?
A document that comes from the insurance company and summarizes coverage provided by the homeowners policy
What is a Binder?
Contract of temporary insurance pending issuance of a formal policy. We do not proactively request this.
What is an Accord form?
This form summarizes essential information about the policy
What is the Replacement Cost Estimator (RCE)?
An estimate cost to rebuild the home in the event of total loss (like an appraisal).
What is the mortgage clause?
Provision added to a property insurance policy that protects the lender.
When should insurance be fully updated?
Required for CTC from Underwriting.
On Purchases, an insurance quote in the eFolder is okay.
Required to close with closing department.
This is on all transactions.
What are the requirements for a purchase regarding effective dates?
Effective date must be prior to closing but no more than 15 days prior to closing date. It also must be good for 1 year.
What are the requirements for a refi regarding effective dates?
Policies that expire within 60 days of funding must be paid at closing.
What policies do a condo/PUD property require?
HO-6 and Master Policy
Master policy only needs to be effective through our closing date.
Who is responsible for requesting, reviewing and submitting the HO-6 insurance to UW?
The processor
When are flood certificates pulled?
They are pulled automatically (CoreLogic) on every file and uploaded to the eFolder. If the property is in a flood zone, proof of flood insurance is required.
Flood insurance must always be escrowed on what type of property?
Single family residence
Who reviews insurance at GR?
Rosie Jetson (Bot), UW, Condo Dept (if applicable)
