ON DEMAND: Types of Property Policies Flashcards
1
Q
Dwelling Policy Overview
It’s NOT YOUR ______ POLICY. Designed primarily for ______ PROPERTY.
A
Dwelling Policy Overview
It’s NOT YOUR HOMEOWNER’S POLICY. Designed primarily for RENTAL PROPERTY.
2
Q
Dwelling Policy Overview
2 key areas that are missing in a DWELLING policy that exists in a HOMEOWNER’S POLICY,
1) Coverage for ______
2) Coverage for ______
A
Dwelling Policy Overview
2 key areas that are missing in a DWELLING policy that exists in a HOMEOWNER’S POLICY,
1) Coverage for CONTENT
2) Coverage for LIABILITY
*If you’re not living there, and it’s your RENTERS CONTENT, you want RENTER TO COVER THEIR OWN CONTENT.
**You want them to cover the LIABILITY as well.
3
Q
DP Key Features
Up to __ residential units
A
DP Key Features
Up to 4 residential units
4
Q
DP Key Features
Up to _ roomers/boarders
A
DP Key Features
Up to 5 roomers/boarders
5
Q
DP Key Features
____ or ____ occupied
A
DP Key Features
Owner or tenant occupied
6
Q
DP Key Features
not for ____ property
A
DP Key Features
not for farm property
7
Q
DP Key Features
can insure dwelling under _______
A
DP Key Features
can insure dwelling under construction
8
Q
DP Key Features
covers mobile homes if ______ located on a private lot
A
DP Key Features
covers mobile homes if permanently located on a private lot
9
Q
DP Key Features
incidental business - no more than __ persons working
A
DP Key Features
incidental business - no more than 2 persons working (in the dwelling)
Day care etc
10
Q
Dwelling Policy Structure
ISO
A
Insurance service organization
11
Q
Dwelling Policy Structure
DP ISO Form Structure
1) ______ - What is covered, who, etc
A
Dwelling Policy Structure
DP ISO Form Structure
1) Agreement - What is covered, who, etc
12
Q
Dwelling Policy Structure
DP ISO Form Structure
2) _______ - defining terms
A
Dwelling Policy Structure
DP ISO Form Structure
2) Definitions - defining terms
13
Q
Dwelling Policy Structure
DP ISO Form Structure
3) Deductible - ________
A
Dwelling Policy Structure
DP ISO Form Structure
3) Deductible - What it is and how implemented
14
Q
Dwelling Policy Structure
DP ISO Form Structure
4) \_\_\_\_\_\_\_ - what is covered by the policy A- Dwelling and attached B- Not attached C- Content (not covered on the dwelling) D- Indirect coverage (loss of income)
A
Dwelling Policy Structure
DP ISO Form Structure
4) Coverages and other coverages - what is covered by the policy A- Dwelling and attached B- Not attached C- Content (not covered on the dwelling) D- Indirect coverage (loss of income)
15
Q
Dwelling Policy Structure
DP ISO Form Structure
5) _____ insured against (cause of the loss, fire)
A
Dwelling Policy Structure
DP ISO Form Structure
5) Perils insured against (cause of the loss, fire)
16
Q
Dwelling Policy Structure
DP ISO Form Structure
6) General _______ - What isn’t covered
A
Dwelling Policy Structure
DP ISO Form Structure
6) General exclusions - What isn’t covered
17
Q
Dwelling Policy Structure
DP ISO Form Structure
7) _____ - What both parties are required to do to make the contract valid
A
Dwelling Policy Structure
DP ISO Form Structure
7) Conditions - What both parties are required to do to make the contract valid
18
Q
Dwelling Policy Forms
3 types of forms / DP
A
FORM NAME | FORM # | PERIL TYPE
Basic | DP-1 | Named peril (lowest coverage)
Board | DP-2 | Named peril (better coverage)
Special | DP-3 | Open and Named peril (most amount of coverage)
19
Q
Dwelling Policy Forms
The perils covered are specifically spelled out
A
Named peril
20
Q
Dwelling Policy Forms
All the perils not covered are listed. Everything else is covered.
A
Open peril / All risk peril
21
Q
Dwelling Policy Forms
Which policy form is the LEAST amount of coverage?
A
Basic | DP-1 | Named peril (lowest coverage)
22
Q
Dwelling Policy Forms
Which policy form is the MEDIUM amount of coverage?
A
Board | DP-2 | Named peril (better coverage)
Includes everything in DP-1
23
Q
Dwelling Policy Forms
Which policy form is the MOST amount of coverage?
A
Special | DP-3 | Open and Named peril (most amount of coverage)
Includes everything in DP-1 and DP-2
24
Q
Basic Coverage Form
DP-1 BASIC FORM
Losses paid on an ______ basis
A
Basic Coverage Form
DP-1 BASIC FORM
Losses paid on an actual cash value (ACV) basis
Replacement cost
- Depreciation
= ACV
25
Basic Coverage Form
DP-1 BASIC FORM
Formula for ACV Actual Cash Value
Replacement cost
- Depreciation
= ACV
26
Basic Coverage Form
DP-1 BASIC FORM
Covers 3 things
Basic Coverage Form
DP-1 BASIC FORM
Covers 3 things
1. Fire
2. Lightning
3. Internal explosion
Anything that happens to your home as a result of these three things, you're covered.
Absorbed from the STANDARD FIRE POLICY which is a more basic form of coverage below DP-1
27
Basic Coverage Form
DP-1 BASIC FORM
OPTION-_
Extended Coverage Endorsement: require ADDITIONAL PREMIUM
1. Windstorm/hail
2. Explosion
3. Smoke
4. Aircraft/vehicles
5. Riot/civil commotion
6. Volcanic eruption
Basic Coverage Form
DP-1 BASIC FORM
OPTION-1
"WHARVES"
Extended Coverage Endorsement: require ADDITIONAL PREMIUM
1. Windstorm/hail
2. Explosion
3. Smoke
4. Aircraft/vehicles
5. Riot/civil commotion
6. Volcanic eruption
28
Basic Coverage Form
DP-1 BASIC FORM
OPTION-_
Extended Coverage Endorsement: require ADDITIONAL PREMIUM
1. VMM Vandalism and malicious mischief
Basic Coverage Form
DP-1 BASIC FORM
OPTION-2
"VMM"
Extended Coverage Endorsement: require ADDITIONAL PREMIUM
1. VMM Vandalism and malicious mischief
**Cannot purchase this without purchasing WHARVES first
29
Basic Coverage Form
DP-1 BASIC FORM
"WHARVES" stands for
Basic Coverage Form
DP-1 BASIC FORM
```
Windstorm
Hail
Aircraft/vehicle
Riot/civil commotion
Volcanic eruption
Explosion
Smoke
```
30
Basic Coverage Form
DP-1 BASIC FORM
"W.C.SHAVER" stands for
Basic Coverage Form
DP-1 BASIC FORM
```
Windstorm
Civil commotion
Smoke
Hail
Aircraft/vehicle
Volcano
Explosion
Riot
```
STORY:
Tell yourself a story to help stack the items
31
Broad Coverage Form
DP-2 BROAD FORM
Includes everything from ____
- extended perils
- V&MM
- broad form perils
Broad Coverage Form
DP-2 BROAD FORM
Includes everything from DP-1
- extended perils
- V&MM
- broad form perils
32
Broad Coverage Form
DP-2 BROAD FORM
Losses on replacement cost basis as long as insured maintains a minimum amount of coverage equal to __% of the dwelling ________
Broad Coverage Form
DP-2 BROAD FORM
Losses on replacement cost basis as long as insured maintains a minimum amount of coverage equal to 80% of the dwelling replacement cost
*Losses are paid on a REPLACEMENT COST basis (not a deduction for depreciation), as long as you maintain 80%
33
Broad Coverage Form
DP-2 BROAD FORM
Perils added
Broad Coverage Form
DP-2 BROAD FORM
Perils added
1. Burglary
2. Falling objects
3. Artificially generated electricity
4. Weight of ice, snow, or sleet
5. Accidental discharge or overflow
6. Tearing apart, cracking, burning, or bulging
7. Freezing of plumbing
34
Broad Coverage Form
DP-2 BROAD FORM
Broad form -- additional coverages
1. Lawns, trees, shrubs, and plants
- *$____ each
- max _% of dwelling
Broad Coverage Form
DP-2 BROAD FORM
Broad form -- additional coverages
1. Lawns, trees, shrubs, and plants
- *$500 each
- max 5% of dwelling
35
Broad Coverage Form
DP-2 BROAD FORM
Broad form -- additional coverages
2. Glass breakage
- ___ of the building
- No coverage if ____ over 60 days
Broad Coverage Form
DP-2 BROAD FORM
Broad form -- additional coverages
2. Glass breakage
- Part of the building
- No coverage if vacant over 60 days
36
Broad Coverage Form
DP-2 BROAD FORM
Broad form -- additional coverages
3. Collapse (broad and special)
- Broad form perils or specifically named perils
- ________ settling, cracking, shrinking, bulging, or expansion
Broad Coverage Form
DP-2 BROAD FORM
Broad form -- additional coverages
3. Collapse (broad and special)
- Broad form perils or specifically named perils
- EXCLUDES settling, cracking, shrinking, bulging, or expansion
37
Broad Coverage Form
DP-2 BROAD FORM
Broad form -- Covered Perils
B.B. BICE-GOLF
Bursting of heating systems
Burglary damage
Breaking of water heaters
Ice, snow, or sleet weight
Collapse of building or part of a building
Electrical damage (artificially generated)
Glass breakage
Objects falling from outside
Leakage of water or steam damage
Freezing of plumbing
38
Broad Coverage Form
DP-2 BROAD FORM
Broad theft coverage
Usually not the owner, but the __________
Broad Coverage Form
DP-2 BROAD FORM
Broad theft coverage
Usually not the owner, but the tenant/resident.
39
Broad Coverage Form
DP-2 BROAD FORM
Broad theft coverage
Added by ________ if the INSURED is the OWNER-OCCUPANT of the dwelling
Broad Coverage Form
DP-2 BROAD FORM
Broad theft coverage
Added by ENDORSEMENT if the INSURED is the OWNER-OCCUPANT of the dwelling
40
Broad Coverage Form
DP-2 BROAD FORM
Broad theft coverage
Covers PERSONAL PROPERTY of the _______
Broad Coverage Form
DP-2 BROAD FORM
Broad theft coverage
Covers PERSONAL PROPERTY of the INSURED
41
Broad Coverage Form
DP-2 BROAD FORM
Broad theft coverage
_________ if premises have been vacant for more than 6-consecutive days prior to loss.
Broad Coverage Form
DP-2 BROAD FORM
Broad theft coverage
NO COVERAGE if premises have been vacant for more than 6- consecutive days prior to loss.
42
Broad Coverage Form
DP-2 BROAD FORM
Broad theft coverage
Coverage Limits
$_____ - money, bank notes, bullion, gold, silver (excluding goldware and silverware, platinum, coins, and other metals
Broad Coverage Form
DP-2 BROAD FORM
Broad theft coverage
Coverage Limits
$200 - money, bank notes, bullion, gold, silver (excluding goldware and silverware, platinum, coins, and other metals
43
Broad Coverage Form
DP-2 BROAD FORM
Broad theft coverage
Coverage Limits
$______ Securities, accounts deeds, evidences of debt, letters of credit, notes other than bank notes, manuscripts, passports, tickets, stamps
Broad Coverage Form
DP-2 BROAD FORM
Broad theft coverage
Coverage Limits
$1,500 Securities, accounts deeds, evidences of debt, letters of credit, notes other than bank notes, manuscripts, passports, tickets, stamps
44
Broad Coverage Form
DP-2 BROAD FORM
Broad theft coverage
Coverage Limits
$_____ water craft and their trailers, furnishings, equipment, and outboard motors
Broad Coverage Form
DP-2 BROAD FORM
Broad theft coverage
Coverage Limits
$1,500 water craft and their trailers, furnishings, equipment, and outboard motors
45
Broad Coverage Form
DP-2 BROAD FORM
Broad theft coverage
Coverage Limits
$______ other trailers
Broad Coverage Form
DP-2 BROAD FORM
Broad theft coverage
Coverage Limits
$1,500 other trailers
46
Broad Coverage Form
DP-2 BROAD FORM
Broad theft coverage
Coverage Limits
$______ jewelry, watches, first, and precious and semi-precious stones
Broad Coverage Form
DP-2 BROAD FORM
Broad theft coverage
Coverage Limits
$1,500 jewelry, watches, first, and precious and semi precious stones
47
Broad Coverage Form
DP-2 BROAD FORM
Broad theft coverage
Coverage Limits
$_____ firearms and related equipment
Broad Coverage Form
DP-2 BROAD FORM
Broad theft coverage
Coverage Limits
$2,500 firearms and related equipment
48
Broad Coverage Form
DP-2 BROAD FORM
Broad theft coverage
Coverage Limits
$_____ Silver and silver-plated wear, gold and gold-plated ware, pewterware (e.g. tea sets, trays, trophies
Broad Coverage Form
DP-2 BROAD FORM
Broad theft coverage
Coverage Limits
$2,500 Silver and silver-plated wear, gold and gold-plated ware, pewterware (e.g. tea sets, trays, trophies
49
Broad Coverage Form
DP-2 BROAD FORM
EXCLUSIONS
Broad Coverage Form
DP-2 BROAD FORM
EXCLUSIONS
> Animals, birds, or fish
> Credit cards and fund transfer
> aircraft, hovercraft, and their parts (except model or hobby aircraft)
> property while in the mail
> property held as a sample or for sale
> property specifically described and insured by any other insurance
> property of tenants, rumors, and boarders (other than relatives)
> Business property of the insured or resident employee
> property in the custody of a laundry, cleaner, tailer, presser, or dryer except lost by burlary or robbery
> property at any other location around, Brenton, or occupied by the insured, except if the insured is temporarily residing there
> Motor vehicles, other than motorized vehicles used to service the premises that are not subject to motor vehicle registration, and vehicles designed to assist the handicapped)
> Motor vehicle Quitman and accessories including sound receiving, translating for recording devices, while in the vehicle
50
Special Coverage Form
DP-3 SPECIAL FORM
This is ____ or ALL RISK PERIL
Special Coverage Form
DP-3 SPECIAL FORM
This is OPEN or ALL RISK PERIL
51
Special Coverage Form
DP-3 SPECIAL FORM
____ perils are insured against except those specifically excluded.
Special Coverage Form
DP-3 SPECIAL FORM
All perils are insured against except those specifically excluded.
52
Special Coverage Form
DP-3 SPECIAL FORM
The special in broad form also includes three other coverages
Special Coverage Form
DP-3 SPECIAL FORM
The special in broad form also includes three other coverages
- Breakage of glass
- Collapse
- Lawns, trees, shrubs and plants
53
Special Coverage Form
DP-3 SPECIAL FORM
DP-3 is the most _____ form used because you get the most bang for your buck
Special Coverage Form
DP-3 SPECIAL FORM
DP-3 is the most common form used because you get the most bang for your buck
54
Special Coverage Form
DP COVERAGES
Coverage _ | Dwelling
Special Coverage Form
DP COVERAGES
Coverage A | Dwelling
- All attached property. The building itself. 100% of the coverage
55
Special Coverage Form
DP COVERAGES
Coverage _ | Other Structures
Special Coverage Form
DP COVERAGES
Coverage B | Other Structures
10% of coverage A
- Unattached garage
56
Special Coverage Form
DP COVERAGES
Coverage _ | Personal Property
Special Coverage Form
DP COVERAGES
Coverage C | Personal Property
- C = CONTENT ...
- Added by ENDORSEMENT
57
Special Coverage Form
DP COVERAGES
Coverage _ | Fair rental value
Special Coverage Form
DP COVERAGES
Coverage D | Fair rental value
- 20% of A
- D & E work the same.
- D is fair rental value. IF destroyed by covered period, you get compensation for lost rent (indirect loss)
- Also called consequential loss (consequence)
- also called time-element loss (takes time to rebuild)
58
Special Coverage Form
DP COVERAGES
Coverage _ | Additional living expenses (not included in basic form)
Special Coverage Form
DP COVERAGES
Coverage E | Additional living expenses (not included in basic form)
- If not renting but actually living there
59
Special Coverage Form
COVERAGE EXTENSIONS - ALL FORMS
1. Other structures
__% of DP coverage
Special Coverage Form
COVERAGE EXTENSIONS - ALL FORMS
1. Other structures
10% of DP coverage
60
Special Coverage Form
COVERAGE EXTENSIONS - ALL FORMS
2. ______ removal
Reasonable cost to remove debris after a loss
Special Coverage Form
COVERAGE EXTENSIONS - ALL FORMS
2. Debris removal
Reasonable cost to remove debris after a loss
61
Special Coverage Form
COVERAGE EXTENSIONS - ALL FORMS
3. _______ Improvements, Alterations, and additions
Up to 10% of the personal property limit
Special Coverage Form
COVERAGE EXTENSIONS - ALL FORMS
3. Tenants' Improvements, Alterations, and additions
Up to 10% of the personal property limit
62
Special Coverage Form
COVERAGE EXTENSIONS - ALL FORMS
4. ______ Personal Property
Up to 10% of personal property limit
Special Coverage Form
COVERAGE EXTENSIONS - ALL FORMS
4. Worldwide Personal Property
Up to 10% of personal property limit
63
Special Coverage Form
COVERAGE EXTENSIONS - ALL FORMS
5. ______ Value/additional living expense
- Up to 20% of Coverage A Limit
Special Coverage Form
COVERAGE EXTENSIONS - ALL FORMS
5. Rental Value/additional living expense
- Up to 20% of Coverage A Limit
64
Special Coverage Form
COVERAGE EXTENSIONS - ALL FORMS
6. Reasonable cost of repairs
Repairs necessary to protect property from further loss or damage
Special Coverage Form
COVERAGE EXTENSIONS - ALL FORMS
6. Reasonable cost of repairs
Repairs necessary to protect property from further loss or damage
65
Special Coverage Form
COVERAGE EXTENSIONS - ALL FORMS
7. Property _______
Damage to property removed;
basic - 5 days
broad/special - 30 days
Special Coverage Form
COVERAGE EXTENSIONS - ALL FORMS
7. Property removal
Damage to property removed;
basic - 5 days
broad/special - 30 days
66
Special Coverage Form
COVERAGE EXTENSIONS - ALL FORMS
8. ____ department service charge
Coverage up to $500; no deductible
Special Coverage Form
COVERAGE EXTENSIONS - ALL FORMS
8. Fire department service charge
Coverage up to $500; no deductible
67
DP Conditions
All dwelling policy forms include the following conditions:
DP Conditions
```
All dwelling policy forms include the following conditions
- Policy period
Insurable interest and limit of insurance
- Concealment or fraud
- Duties after a loss
- Loss settlement
- Pair or set
- Appraisal
- Other insurance
- Subrogation
- Suit against the insurer
- Insurer's option to repair or replace
- Loss payment
- Abandonment
- Mortgage holders
- No benefit to bailee
- Cancellation and nonrenewal
- Liberalization
- Assignment
- Death
- Nuclear hazard
- Recovered property
- Volcanic eruption
- Loss payable
```
68
Homeowners Policy Purpose And Eligibility
Key features
- Insures residential risk
Homeowners Policy Purpose And Eligibility
Key features
- Insures residential risk
69
Homeowners Policy Purpose And Eligibility
Key features
- Includes coverage for personal property and personal liability
Homeowners Policy Purpose And Eligibility
Key features
- Includes coverage for personal property and personal liability
70
Homeowners Policy Purpose And Eligibility
ELIGIBLE PROPERTIES
- Up to 4 owner-occupied residences
Homeowners Policy Purpose And Eligibility
ELIGIBLE PROPERTIES
- Up to 4 owner-occupied residences
71
Homeowners Policy Purpose And Eligibility
ELIGIBLE PROPERTIES
- No more than 2 roomers/boarders
Homeowners Policy Purpose And Eligibility
ELIGIBLE PROPERTIES
- No more than 2 roomers/boarders
72
Homeowners Policy Purpose And Eligibility
ELIGIBLE PROPERTIES
- Residential condominium
Homeowners Policy Purpose And Eligibility
ELIGIBLE PROPERTIES
- Residential condominium
73
Homeowners Policy Purpose And Eligibility
ELIGIBLE PROPERTIES
- Seasonal dwellings and secondary residences
Homeowners Policy Purpose And Eligibility
ELIGIBLE PROPERTIES
- Seasonal dwellings and secondary residences
74
Definitions
HO policies define the INSURED AS:
- The NAMED INSURED
Definitions
HO policies define the INSURED AS:
- The NAMED INSURED
75
Definitions
HO policies define the INSURED AS:
- Relatives of the named insured who reside with the named insured
Definitions
HO policies define the INSURED AS:
- Relatives of the named insured who reside with the named insured
76
Definitions
HO policies define the INSURED AS:
- Nonrelative residents in the care of the name insured or resident relatives under the age of 21
Definitions
HO policies define the INSURED AS:
- Nonrelative residents in the care of the name insured or resident relatives under the age of 21
77
Definitions
HO policies define the INSURED AS:
- Full-time students under the age of 24 who are relatives of the named insured and who were residents prior to attending school (nonrelatives are covered only until the age of 21)
Definitions
HO policies define the INSURED AS:
- Full-time students under the age of 24 who are relatives of the named insured and who were residents prior to attending school (nonrelatives are covered only until the age of 21)
78
Definitions
HO policies define the INSURED AS:
- Any person legally responsible for the insured's animals, watercraft, or certain types of motorized vehicles (section II liability only)
Definitions
HO policies define the INSURED AS:
- Any person legally responsible for the insured's animals, watercraft, or certain types of motorized vehicles (section II liability only)
79
Definitions
Insured location is any of the following:
- Resident premises
- Part of other premises used by the named insured as a resident or newly acquired during the policy period
- Premise not owned by the insured, but where the insured is living temporarily (motel room)
- Vacant land owned or rented by the insured (except Farmland)
- Land owned or rented by the insured where a residential dwelling is being constructed
- Individual or family cemetery plots or burial vaults of the insured
- Any part of premises occasionally rented to an insured, but NOT for business purposes.
Definitions
Insured location is any of the following:
- Resident premises
- Part of other premises used by the named insured as a resident or newly acquired during the policy period
- Premise not owned by the insured, but where the insured is living temporarily (motel room)
- Vacant land owned or rented by the insured (except Farmland)
- Land owned or rented by the insured where a residential dwelling is being constructed
- Individual or family cemetery plots or burial vaults of the insured
- Any part of premises occasionally rented to an insured, but NOT for business purposes.
80
HO Coverage Forms
Form = Policy
HO Coverage Forms
Form = Policy
81
HO Coverage Forms
```
Broad Form
Special Form
Renters or Tenants Form
Comprehensive Form
Condominium Form
Modified Form
```
HO Coverage Forms
```
Broad Form
Special Form
Renters or Tenants Form
Comprehensive Form
Condominium Form
Modified Form
```
82
HO Coverage Forms
Broad Form
HO 00 02 or HO-2
Owner-occupied
Named Peril
HO Coverage Forms
Broad Form
HO 00 02 or HO-2
Owner occupied
Named Peril
83
HO Coverage Forms
Special form
HO 00 03 or HO-3
Owner Occupied
Open and named peril (if not stated as an exclusion, its covered. Large exclusion section)
HO Coverage Forms
Special form
HO 00 03 or HO-3
Owner Occupied
Open and named peril (if not stated as an exclusion, its covered. Large exclusion section)
84
HO Coverage Forms
Renters or tenants Form
HO 00 04 or HO-4
Tenant occupied
Named peril
HO Coverage Forms
Renters or tenants Form
HO 00 04 or HO-4
Tenant occupied
Named peril
85
HO Coverage Forms
Comprehensive (Cadillac of coverage)
HO 00 05 or HO-5
Owner occupied
Open peril (large exclusions)
HO Coverage Forms
Comprehensive (Cadillac of coverage)
HO 00 05 or HO-5
Owner occupied
Open peril (large exclusions)
86
HO Coverage Forms
Condominium
HO 00 06 or HO-6
Condominium unit owner occupied
Named peril
HO Coverage Forms
Condominium
HO 00 06 or HO-6
Condominium unit owner occupied
Named peril
87
HO Coverage Forms
Modified form
HO 00 08 or HO-8
Historic or older homes, owner occupied
Named peril
HO Coverage Forms
Modified form
HO 00 08 or HO-8
Historic or older homes, owner occupied
Named peril
88
HO Covered Perils
```
COVERED PERILS
HO-2
Fire or lightning
Windstorm or hail
Explosion
Riot or civil commotion
Aircraft
Vehicle
Smoke
Vandalism or theft
Falling objects
Weight of ice, snow or sleet
Accidental discharge or overflow of water or steam
- Sudden and accidental tearing apart, cracking, burning, or bulging
- Freezing or appliances
- Damage from artificially generated electricity
- Volcanic eruption
```
HO Covered Perils
```
WHARVES
COVERED PERILS
HO-2
Fire or lightning
Windstorm or hail
Explosion
Riot or civil commotion
Aircraft
Vehicle
Smoke
Vandalism or theft
Falling objects
Weight of ice, snow or sleet
Accidental discharge or overflow of water or steam
- Sudden and accidental tearing apart, cracking, burning, or bulging
- Freezing or appliances
- Damage from artificially generated electricity
- Volcanic eruption
```
89
HO Covered Perils
COVERED PERILS
HO-3
- HO-2 +
- Building - open peril
- Contents - same perils as Form HO-2
HO Covered Perils
COVERED PERILS
HO-3
- HO-2 +
- Building - open peril
- Contents - same perils as Form HO-2
90
HO Covered Perils
COVERED PERILS
HO-3
- HO-2 +
- Building - open peril
- Contents - same perils as Form HO-2
HO Covered Perils
COVERED PERILS
HO-3
- HO-2 +
- Building - open peril
- Contents - same perils as Form HO-2
91
HO Covered Perils
COVERED PERILS
HO-4
- same perils as Form HO-2
HO Covered Perils
COVERED PERILS
HO-4
- same perils as Form HO-2
92
HO Covered Perils
COVERED PERILS
HO-5
- Building and contents - Open Peril
HO Covered Perils
COVERED PERILS
HO-5
- Building and contents - Open Peril
93
HO Covered Perils
COVERED PERILS
HO-6
- Same perils as Form HO-2
HO Covered Perils
COVERED PERILS
HO-6
- Same perils as Form HO-2
94
HO Covered Perils
COVERED PERILS
HO-8
- Fire or lightning
- Windstorm
- Explosion
- Riot or civil commotion
- Aircraft
- Vehicles
- Smoke
- Vandalism
- Theft
- Volcanic Eruption
HO Covered Perils
COVERED PERILS
HO-8
- Fire or lightning
- Windstorm
- Explosion
- Riot or civil commotion
- Aircraft
- Vehicles
- Smoke
- Vandalism
- Theft
- Volcanic Eruption
95
HO Covered Perils
2 Sections
SECTION I - Property Coverages
SECTION II - Liability Coverages
HO Covered Perils
2 Sections
SECTION I - Property Coverages
SECTION II - Liability Coverages
96
HO Covered Perils
SECTION I - Property Coverages
- Coverage A - Dwelling
- Coverage B - Other Structures
- Coverage C - Personal Property (Contents)
- Coverage D - Loss of Use
All coverage forms include a basic deductible of $250, which applies to all coverages unless noted in the policy
HO Covered Perils
SECTION I - Property Coverages
- Coverage A - Dwelling
- Coverage B - Other Structures
- Coverage C - Personal Property (Contents)
- Coverage D - Loss of Use
All coverage forms include a basic deductible of $250, which applies to all coverages unless noted in the policy
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HO Covered Perils
SECTION II - Liability Coverages
- Coverage E - Personal liability
- Coverage F - Medical payments to others
HO Covered Perils
SECTION II - Liability Coverages
- Coverage E - Personal liability
- Coverage F - Medical payments to others
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HO Property Coverages
COVERAGE A - DWELLING
- Dwelling itself
- Structures attached to the dwelling
- Materials and supplies
HO Property Coverages
COVERAGE A - DWELLING
- Dwelling itself
- Structures attached to the dwelling
- Materials and supplies
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HO Property Coverages
COVERAGE B - OTHER STRUCTURES
- Basic amount of insurance equal to 10% of Coverage A limit
- not applicable in HO-4 or HO-6
HO Property Coverages
COVERAGE B - OTHER STRUCTURES
- Basic amount of insurance equal to 10% of Coverage A limit
- not applicable in HO-4 or HO-6
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HO Property Coverages
COVERAGE C - PERSONAL PROPERTY
- Full Coverage C limit worldwide
- Property of others covered on the residence premises
- Property at another premises covered for $1,000 or 10% of Coverage C
HO Property Coverages
COVERAGE C - PERSONAL PROPERTY
- Full Coverage C limit worldwide
- Property of others covered on the residence premises
- Property at another premises covered for $1,000 or 10% of Coverage C
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HO Property Coverages
COVERAGE D - LOSS OF USE
Pays either additional living expenses or fair rental value
HO Property Coverages
COVERAGE D - LOSS OF USE
Pays either additional living expenses or fair rental value
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Additional Property Coverages
DEBRIS REMOVAL
- Included in the policy limit; covers reasonable expenses for removing debris after a loss
Additional Property Coverages
DEBRIS REMOVAL
- Included in the policy limit; covers reasonable expenses for removing debris after a loss
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Additional Property Coverages
LAWNS, PLANTS, SHRUBS AND TREES
5% of coverage A, but no more than $500 for any one tree, plant, shrub, etc
Additional Property Coverages
LAWNS, PLANTS, SHRUBS AND TREES
5% of coverage A, but no more than $500 for any one tree, plant, shrub, etc
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Additional Property Coverages
REMOVAL
30 days for property removed to protect from covered peril
Additional Property Coverages
REMOVAL
30 days for property removed to protect from covered peril
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Additional Property Coverages
REASONABLE COST OF REPAIRS
Repairs necessary to protect property from further loss or damage
Additional Property Coverages
REASONABLE COST OF REPAIRS
Repairs necessary to protect property from further loss or damage
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Additional Property Coverages
FIRE DAMAGE SERVICE CHARGE
Up to $500; no deductible
Additional Property Coverages
FIRE DAMAGE SERVICE CHARGE
Up to $500; no deductible
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Additional Property Coverages
CREDIT CARDS
Up to $500 for loss due to theft or unauthorized use; no dedictible
Additional Property Coverages
CREDIT CARDS
Up to $500 for loss due to theft or unauthorized use; no dedictible
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Additional Property Coverages
GLASS OR SAFETY GLAZING MATERIAL
any peril except earth movement' no peril vacancy more than 60 days
Additional Property Coverages
GLASS OR SAFETY GLAZING MATERIAL
any peril except earth movement' no peril vacancy more than 60 days
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Additional Property Coverages
COLLAPSE
Coverage A & B; limits/conditions/exclusions apply
Additional Property Coverages
COLLAPSE
Coverage A & B; limits/conditions/exclusions apply
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Additional Property Coverages
LOSS ASSESSMENT
up to $1000
Additional Property Coverages
LOSS ASSESSMENT
up to $1000
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Additional Property Coverages
LANDLORD'S FURNISHINGS
Up to $2,5000; must be on residence premises
Additional Property Coverages
LANDLORD'S FURNISHINGS
Up to $2,5000; must be on residence premises
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Additional Property Coverages
BUILDING ADDITIONS AND ALTERATIONS
10% of Coverage C; HO-4 only
Additional Property Coverages
BUILDING ADDITIONS AND ALTERATIONS
10% of Coverage C; HO-4 only
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Additional Property Coverages
ORDINANCE LAW
Up to 10% of Coverage A; limits and conditions apply
Additional Property Coverages
ORDINANCE LAW
Up to 10% of Coverage A; limits and conditions apply
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Additional Property Coverages
GRAVE MARKERS
up to $5000; on or off residence premises
Additional Property Coverages
GRAVE MARKERS
up to $5000; on or off residence premises
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Insured Duties After A Loss
If a loss occurs, the insured is required to do the following:
- provide prompt notice of loss
Insured Duties After A Loss
If a loss occurs, the insured is required to do the following:
- provide prompt notice of loss
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Insured Duties After A Loss
If a loss occurs, the insured is required to do the following:
- notify the police if a loss is caused by theft
Insured Duties After A Loss
If a loss occurs, the insured is required to do the following:
- notify the police if a loss is caused by theft
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Insured Duties After A Loss
If a loss occurs, the insured is required to do the following:
- notify the credit card company if the loss is covered under the credit card coverage
Insured Duties After A Loss
If a loss occurs, the insured is required to do the following:
- notify the credit card company if the loss is covered under the credit card coverage
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Insured Duties After A Loss
If a loss occurs, the insured is required to do the following:
- protect the property from further damage
Insured Duties After A Loss
If a loss occurs, the insured is required to do the following:
- protect the property from further damage
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Insured Duties After A Loss
If a loss occurs, the insured is required to do the following:
- cooperate with the insurer and the investigation of a claim
Insured Duties After A Loss
If a loss occurs, the insured is required to do the following:
- cooperate with the insurer and the investigation of a claim
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Insured Duties After A Loss
If a loss occurs, the insured is required to do the following:
- allow the insured to inspect the property as often as needed
Insured Duties After A Loss
If a loss occurs, the insured is required to do the following:
- allow the insured to inspect the property as often as needed
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Insured Duties After A Loss
If a loss occurs, the insured is required to do the following:
- submit to an examination under oath (upon request)
Insured Duties After A Loss
If a loss occurs, the insured is required to do the following:
- submit to an examination under oath (upon request)
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Insured Duties After A Loss
If a loss occurs, the insured is required to do the following:
- within 60 days of the insurance request, since they signed, sworn proof of loss
> Time and events leading to the loss
> inventory, receipts, bills
> other insurance on the property
> estimates for repair
Insured Duties After A Loss
If a loss occurs, the insured is required to do the following:
- within 60 days of the insurance request, since they signed, sworn proof of loss
> Time and events leading to the loss
> inventory, receipts, bills
> other insurance on the property
> estimates for repair
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Loss Settlement
Replacement cost vs Actual Cash Value (ACV)
Actual Cash Value (ACV)
- Reinforces the PRINCIPLE OF INDEMNITY
Loss Settlement
Replacement cost vs Actual Cash Value (ACV)
Actual Cash Value (ACV)
- Reinforces the PRINCIPLE OF INDEMNITY
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Loss Settlement
Replacement cost vs Actual Cash Value (ACV)
Actual Cash Value (ACV)
- recognizes the reduction of value of property as it ages and becomes subject to wear and tear obsolescence
Loss Settlement
Replacement cost vs Actual Cash Value (ACV)
Actual Cash Value (ACV)
- recognizes the reduction of value of property as it ages and becomes subject to wear and tear obsolescence
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Loss Settlement
Replacement cost vs Actual Cash Value (ACV)
Actual Cash Value (ACV)
Replacement cost - Depreciation = Actual cash value
Loss Settlement
Replacement cost vs Actual Cash Value (ACV)
Actual Cash Value (ACV)
Replacement cost - Depreciation = Actual cash value
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Loss Settlement
Replacement cost vs Actual Cash Value (ACV)
Actual Cash Value (ACV)
Examples:
- personal property, awnings, appliances, and tenants, structures that are not buildings, grave markers in mausoleums
Loss Settlement
Replacement cost vs Actual Cash Value (ACV)
Actual Cash Value (ACV)
Examples:
- personal property, awnings, appliances, and tenants, structures that are not buildings, grave markers in mausoleums
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Loss Settlement
Replacement cost vs Actual Cash Value (ACV)
Replacement Cost
- the cost to replace damaged property with like kind and quality at these prices, without any deduction for depreciation
Loss Settlement
Replacement cost vs Actual Cash Value (ACV)
Replacement Cost
- the cost to replace damaged property with like kind and quality at these prices, without any deduction for depreciation
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Loss Settlement
Replacement cost vs Actual Cash Value (ACV)
Replacement Cost
May provide the insured with a settlement in excess of the property ACV
Loss Settlement
Replacement cost vs Actual Cash Value (ACV)
Replacement Cost
May provide the insured with a settlement in excess of the property ACV
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Loss Settlement
Replacement cost vs Actual Cash Value (ACV)
Replacement Cost
Examples
- buildings and other structures it covered for at least 80% of replacement cost
- building rebuilt at another promises
Loss Settlement
Replacement cost vs Actual Cash Value (ACV)
Replacement Cost
Examples
- buildings and other structures it covered for at least 80% of replacement cost
- building rebuilt at another promises
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HO Liability Coverages
You don't have them on DWELLING policies, you DO have them on HOMEOWNERS
HO Liability Coverages
You don't have them on DWELLING policies, you DO have them on HOMEOWNERS
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HO Liability Coverages
It's LIABILITY THAT IS PAID OTHERS, not you. If someone comes on your property and is hurt or possessions are damaged.
HO Liability Coverages
It's LIABILITY THAT IS PAID OTHERS, not you. If someone comes on your property and is hurt or possessions are damaged.
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HO Liability Coverages
LIABILITY COVERAGES
COVERAGE E | PERSONAL LIABILITY
- Covers Bodily Injury (BI) and Property Damage (PD)
HO Liability Coverages
LIABILITY COVERAGES
COVERAGE E | PERSONAL LIABILITY
- Covers Bodily Injury (BI) and Property Damage (PD)
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HO Liability Coverages
LIABILITY COVERAGES
COVERAGE E | PERSONAL LIABILITY
- Pays up to policy limits
HO Liability Coverages
LIABILITY COVERAGES
COVERAGE E | PERSONAL LIABILITY
- Pays up to policy limits
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HO Liability Coverages
LIABILITY COVERAGES
COVERAGE E | PERSONAL LIABILITY
- Cost of defense does not reduce limit
HO Liability Coverages
LIABILITY COVERAGES
COVERAGE E | PERSONAL LIABILITY
- Cost of defense does not reduce limit
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HO Liability Coverages
LIABILITY COVERAGES
COVERAGE F | MEDICAL PAYMENTS TO OTHERS
- basic limit of $1,000 (can be increased)
HO Liability Coverages
LIABILITY COVERAGES
COVERAGE F | MEDICAL PAYMENTS TO OTHERS
- basic limit of $1,000 (can be increased)
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HO Liability Coverages
LIABILITY COVERAGES
COVERAGE F | MEDICAL PAYMENTS TO OTHERS
- Coverage regardless of fault
HO Liability Coverages
LIABILITY COVERAGES
COVERAGE F | MEDICAL PAYMENTS TO OTHERS
- Coverage regardless of fault
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HO Liability Coverages
LIABILITY COVERAGES
COVERAGE F | MEDICAL PAYMENTS TO OTHERS
- Within 3 years of the accident
HO Liability Coverages
LIABILITY COVERAGES
COVERAGE F | MEDICAL PAYMENTS TO OTHERS
- Within 3 years of the accident
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HO Liability Coverages
LIABILITY COVERAGES
COVERAGE F | MEDICAL PAYMENTS TO OTHERS
- Off-premises: actions of insured or resident employees; animals
HO Liability Coverages
LIABILITY COVERAGES
COVERAGE F | MEDICAL PAYMENTS TO OTHERS
- Off-premises: actions of insured or resident employees; animals
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HO Liability Coverages
ADDITIONAL LIABILITY COVERAGES
CLAIMS EXPENSE
- expenses in a lawsuit against the insured, up to $250 per day for loss of income by insured, requires premiums on bonds (time off from work to get evidence, be at court etc)
HO Liability Coverages
ADDITIONAL LIABILITY COVERAGES
CLAIMS EXPENSE
- expenses in a lawsuit against the insured, up to $250 per day for loss of income by insured, requires premiums on bonds (time off from work to get evidence, be at court etc)
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HO Liability Coverages
ADDITIONAL LIABILITY COVERAGES
FIRST AID TO OTHERS
- expenses incurred by insured to render first aid for bodily injury to third parties, NOT the insured (person got bit by your dog and you apply aid and used supplies)
HO Liability Coverages
ADDITIONAL LIABILITY COVERAGES
FIRST AID TO OTHERS
- expenses incurred by insured to render first aid for bodily injury to third parties, NOT the insured (person got bit by your dog and you apply aid and used supplies)
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HO Liability Coverages
ADDITIONAL LIABILITY COVERAGES
DAMAGE TO THE PROPERTY OF OTHERS
- Up to $1,000 per occurrence
HO Liability Coverages
ADDITIONAL LIABILITY COVERAGES
DAMAGE TO THE PROPERTY OF OTHERS
- Up to $1,000 per occurrence
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HO Liability Coverages
ADDITIONAL LIABILITY COVERAGES
LOSS ASSESSMENT COVERAGE
- that's $1000 per occurrence for the insurance share of loss assessment charged against the insured as owner/ tenant of residence premises
HO Liability Coverages
ADDITIONAL LIABILITY COVERAGES
LOSS ASSESSMENT COVERAGE
- that's $1000 per occurrence for the insurance share of loss assessment charged against the insured as owner/ tenant of residence premises
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National Flood Insurance Program
DEFINITION OF A FLOOD
As defined by NFIP:
"a flat is a general and temporary condition of partial or complete in addition of two or more acres of normally dry land area or of two or more properties."
National Flood Insurance Program
DEFINITION OF A FLOOD
As defined by NFIP:
"a flat is a general and temporary condition of partial or complete in addition of two or more acres of normally dry land area or of two or more properties."
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National Flood Insurance Program
ELIGIBLE CAUSES OF FLOOD:
- overflow of inland or tidal waters
- unusual and rabbit accumulation or runoff of surface waters
- mudflow and mudslides
- abnormal erosion of shoreline is caused by flooding
National Flood Insurance Program
ELIGIBLE CAUSES OF FLOOD:
- overflow of inland or tidal waters
- unusual and rabbit accumulation or runoff of surface waters
- mudflow and mudslides
- abnormal erosion of shoreline is caused by flooding
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National Flood Insurance Program
EXCLUSIONS FROM THE DEFINITION:
- landslides, sewer back up and related to flood, wind blowing rain, snow or sleet, and flooding that is within the insurance control
National Flood Insurance Program
EXCLUSIONS FROM THE DEFINITION:
- landslides, sewer back up and related to flood, wind blowing rain, snow or sleet, and flooding that is within the insurance control
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National Flood Insurance Program
```
2 | 2 | 2 Rule with flood insureance
The structure has to have
- 2 or more walls and a roof
- 2 or more acres of land
- 2 or more properties
```
National Flood Insurance Program
```
2 | 2 | 2 Rule with flood insureance
The structure has to have
- 2 or more walls and a roof
- 2 or more acres of land
- 2 or more properties
```
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National Flood Insurance Program
National Flood Insurance Program
Administered by Federal Insurance and Mitigation Administration (FIMA) under Federal Emergency Management Agency (FEMA)
- Sometimes its the only way to get flood insurance
National Flood Insurance Program
National Flood Insurance Program
Administered by Federal Insurance and Mitigation Administration (FIMA) under Federal Emergency Management Agency (FEMA)
- Sometimes its the only way to get flood insurance
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National Flood Insurance Program
THREE MAIN COMPONENTS
- Insurance
- Floodplain management
- Floodplain mapping
National Flood Insurance Program
THREE MAIN COMPONENTS
- Insurance
- Floodplain management
- Floodplain mapping
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National Flood Insurance Program
```
ELIGIBILITY
- must live in community that meets minimum floodplain management guidelines
Structure must
- I have two solid walls and a roof
- principally above ground
- not be entirely over water
```
National Flood Insurance Program
```
ELIGIBILITY
- must live in community that meets minimum floodplain management guidelines
Structure must
- I have two solid walls and a roof
- principally above ground
- not be entirely over water
```
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Flood Policy Waiting Period
- 30 days before coverage is in effect
Flood Policy Waiting Period
- 30 days before coverage is in effect
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Flood Policy Waiting Period
- No binders can be issued during the waiting period
Flood Policy Waiting Period
- No binders can be issued during the waiting period
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Flood Policy Waiting Period
Waiting period may be WAIVED
- during the first 30 days after a community enters the program (coverage begins at 12:01 AM the day after the application and premium have been mailed)
Flood Policy Waiting Period
Waiting period may be WAIVED
- during the first 30 days after a community enters the program (coverage begins at 12:01 AM the day after the application and premium have been mailed)
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Flood Policy Waiting Period
Waiting period may be WAIVED
- When an existing policy is assigned to a property purchaser
Flood Policy Waiting Period
Waiting period may be WAIVED
- When an existing policy is assigned to a property purchaser
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Flood Policy Waiting Period
Waiting period may be WAIVED
- When an endorsement request for an existing policy and premium have been mailed (coverage begins at 12:01 AM on the 5th day.)
Flood Policy Waiting Period
Waiting period may be WAIVED
- When an endorsement request for an existing policy and premium have been mailed (coverage begins at 12:01 AM on the 5th day.)
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Personal Watercraft Coverage
ON THE HO POLICY IF:
- Inboard-powered boats up to 50 HORSEPOWER
Personal Watercraft Coverage
ON THE HO POLICY IF:
- Inboard-powered boats up to 50 HORSEPOWER
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Personal Watercraft Coverage
ON THE HO POLICY IF:
- Outboard-powered boats up to 25 HORSEPOWER
Personal Watercraft Coverage
ON THE HO POLICY IF:
- Outboard-powered boats up to 25 HORSEPOWER
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Personal Watercraft Coverage
ON THE HO POLICY IF:
- Sailing vessels up to 26 feet in length
Personal Watercraft Coverage
ON THE HO POLICY IF:
- Sailing vessels up to 26 feet in length
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Personal Watercraft Coverage
ON THE HO POLICY IF:
- Up to $1,500 of coverage
Personal Watercraft Coverage
ON THE HO POLICY IF:
- Up to $1,500 of coverage
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Personal Watercraft Coverage
BOATOWNERS POLICY
- Section I -- Physical damage
Personal Watercraft Coverage
BOATOWNERS POLICY
- Section I -- Physical damage
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Personal Watercraft Coverage
BOATOWNERS POLICY
- Section II - Liability coverage (watercraft liability, medical payments, uninsured boaters)
Personal Watercraft Coverage
BOATOWNERS POLICY
- Section II - Liability coverage (watercraft liability, medical payments, uninsured boaters)
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Personal Watercraft Coverage
ENDORSEMENTS
- if additional coverage is needed
Personal Watercraft Coverage
ENDORSEMENTS
- if additional coverage is needed
