property and liability insurance Flashcards
what are the three basic forms of coverage offered by homeowners policies?
basic coverage
broad coverage
open coverage
what is basic coverage?
protects the homeowner from losses associated with 12 named perils:
- fire
- vehicles (damage caused by vehicles)
- lightning
- smoke
- windstorm
- vandalism or malicious mischief
- hail
- explosions
- riots or civil commotion
- theft
- aircraft
- volcanic eruptions
what is broad coverage?
provides protection from losses associated with 18 named perils
- 12 basic perils
PLUS
- falling objects
- the weight of ice, snow, or sleet
- accidental discharge or overflow of water or steam
- sudden and accidental cracking, burning and bulging of appliances
- freezing of plumbing, heating, air conditioning, fire sprinkler system or appliance
- sudden and accidental damage from artificially generated electrical currents
what is open perils coverage?
provides protection from losses associated with all perils, except those that are specifically excluded
what are some perils that are generally excluded from most homeowners policies?
- earthquake/mudslide/sink hole
- ordinance or law regulating the construction, repair or demolition of a building or structure
- damage from rising water
- war
- nuclear hazards
- power failure caused by an uninsured peril
-intentional acts
-neglect
What is covered in Section 1, Coverage A?
dwelling
What is covered in Section 1, Coverage B?
other structures
What is covered in Section 1, Coverage C?
personal property
What is covered in Section 1, Coverage D?
loss of use
What is covered in Section 2, Coverage E?
Personal Liability
What is covered in Section 2, Coverage F?
medical payments to others
What is HO-2 Broad Form?
provides coverage on a broad perils basis aka 18 named perils
What is HO-3 Special Form?
provides coverage on an “open perils” basis
(personal property is still provided on a named perils basis)
What is HO-4 Renters Policy?
provides coverage for renters and tenants
-does not cover dwellings or other structures
-provides personal liability coverage
-provides coverage for personal contents on a broad perils basis
-provides for loss of use of the premise
What is HO-5 Comprehensive Form?
provides coverage on an “open perils” basis
- very similar to HO-3 with one major change - HO-5 provides personal property protection on an open perils basis
What is HO-6 Condominium Owners Form?
provides coverage for condos
- coverage for inside structure of their unit and all of its contents
- broad perils coverage
- does not provide building coverage other than for additions and alterations
What is HO-8 Modified Coverage form?
provides repair cost coverage for damage to property
- provides functional replacement cost coverage
- typically insures older homes that may be quite expensive to repair if the insurance is required to use original construction materials and workmanship
What is covered in automobile insurance, part A?
liability coverage
What is covered in automobile insurance, part B?
medical payments coverage
What is covered in automobile insurance, part C?
uninsured motorist coverage
What is covered in automobile insurance, part D?
coverage for damage to the insured’s automobile
What is covered in automobile insurance, part E?
duties after an accident or loss
What is covered in automobile insurance, part F?
general provisions
a split limit policy (50/100/50)
a policy where the liability for bodily injury per person, bodily injury per accident and property damage are all separately stated
50k of bodily injury coverage per person
100k of bodily injury coverage per accident
50k of property damage coverage
