Property and Liability Insurance Flashcards
Define Property and Liability Insurance
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
Describe Basic Coverage, Broad Coverage for Homeowners Insurance
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
what are the general expulsions and endorsements of purchase
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
What are the Section 1 Coverages
Dwelling, other structures, personal property, loss of use
What are the section 2 coverages
Personal Liability, medical payments to others
What are the Homeowner Policy forms (Ho)
Ho2 Broad, Ho3 specific, Ho4 Renters, Ho5 Comprehensive, Ho6 Condo, Ho8 Modified older homes