Property and Liability Insurance

Question 1

Define Property and Liability Insurance

Answer 1

Property: provides financial protection for losses on homes, condos, cars, boats and other property assets

Liability: protects individuals against financial loss associated with legal action generally due to property damage, person injury and loss of income.

• homeowners and automobile are usually packaged with both liabilities.
• additional coverage can be purchased under umbrella policy

Question 2

Describe Basic Coverage, Broad Coverage for Homeowners Insurance

Answer 2

coverages of 12 perils:
Fire, vehicles, lightening, smoke, wind, vandalism, hail, explosions, riots, theft, aircraft, volcanic eruptions

Broad: includes additional 6 perils. Falling objects, weight of ice, snow, sleet, accidental discharge of overflowing water or steam, sudden and accidental cracking, burning, bulging appliances, freeing of plumbing, heating, AC, sudden and accidental damage from electric currents

Question 3

what are the general expulsions and endorsements of purchase

Answer 3

Exclusions: Movement of Ground, ordinance or law regulating, damage from rising water, war, nuclear hazards, power failure from uninsured peril, intentional and neglect

Endorsements: sink hold, earthquake, sewage backup, refrigerated property

Question 4

What are the Section 1 Coverages

Answer 4

Dwelling, other structures, personal property, loss of use

Question 5

What are the section 2 coverages

Answer 5

Personal Liability, medical payments to others

Question 6

What are the Homeowner Policy forms (Ho)

Answer 6

Ho2 Broad, Ho3 specific, Ho4 Renters, Ho5 Comprehensive, Ho6 Condo, Ho8 Modified older homes