Lesson 12 Property Insurance Flashcards
Property insurance
Provides protection against most risks to property, fire, theft and some weather damage
Package policy
Insurance policy that combines coverage from two or more types of insurances (such as property and liability) into one policy
Liability insurance
Policy that covers civil liabilities to third parties, arising from bodily injury, property damage, or other wrongs due to the action or inaction of the insured
Actual cash value
A method of valuing insured property.
Replacement cost
Normal cost of exact duplication of the property as of a certain date.
Who is the only person that covers water damage?
Federal government
Insurance deductible
In an insurance policy the deductible is the amount of expenses that must be paid out-of-pocket before an insurer will pay any expenses
What is the true reason to have a homeowners policy?
For catastrophic events. Not maintenance repairs
Umbrella policy
Insurance policy that covers amounts above those covered under one or more other primary policies, and which does not pay until the losses exceed a certain some. Also called excess insurance.
Can’t numerical general liability policy (4 components). What are they?
- Bodily injury
- Property damage
- Physical injury
- Advertising injury
What is BOP?
Business owners policy which combines the physical damage component with the liability component, package concept, for a business owner. It is a widely used policy for commercial businesses and gives the best value for physical damage property in the liability that the commercial market place really demand.
Who needs an umbrella policy?
If you have assessed over $500,000
How much insurance would you have in place depending on the value of the home?
The value that the client should ensure is typically 80% of the property value
What is NYPIUA
New York property insurance underwriting association. Formed for high risk/ coastal exposure
FEMA
Federal Emergency Management Association. Flood insurance
