Property Insurance Flashcards
This type of insurance offers two or more coverage parts combined into one policy
Package
Insures the individual for financial losses that may arise out of the person’s responsibilities to others imposed by law or contract.
Liability
This type of insurance covers both real and personal property
Monoline
This type of insurance policy is written to provide access liability coverage, over and above other liability policies
Umbrella
do not provide any coverage on the property; but to provide extra liability coverage.
- Location of property
- construction materials
- amount of coverage
Are:
Main factors that term in the cost of insurance
This is the dollar amount the insured must pay on each loss to which the deductible applies. The insurance company pays the remainder of policy limits. This helps control the cost of insurance and prevents over utilization of policies.
Deductible
deductibles have an impact on the amount of the premium: the higher the deductible: the lower the premium
The lender has ______ ______in a property and requires the proper mortgage cost to be added to the buyers property policy to cover the lenders interest in preservation and reconstruction of property.
Insurable interesting
most lenders require the buyer to pay the first years insurance premium in full prior to closing
At closing the buyer has ownership and has a ______ _______in the property and it’s preservation.
Insurable interest
An insurance policy that covers direct and indirect losses, but provides no theft or liability coverage. These coverages may be added by separate endorsement. The customer can specify for what and how much they wish to be insured for.
Dwelling policy
This policy allows the coverage to be purchased based on the needs of the policyholder.
Dwelling policies
This policy does not cover theft or liability
Dwelling policies
This policy does cover theft and liability
All homeowners policies
- riot or civil commotion
- removal
- explosion
- volcanic action
- vehicles
- fire
- Lightning
- smoke, sinkhole collapse, sprinkler leakage
- hail
- Aircraft/damage done by
- Wind
Are:
11 named perils that most insurance policies cover
This type of insurance does not cover damage caused by the power of the flood
Property insurance
NFIP
National flood insurance program/and the write your own program, provide insurance for anyone who wants to buy it.
This type of insurance provides a single amount of insurance that may apply to different types of property or to different locations.
Blanket insurance
Claims can be settled in these two ways:
Actual cash value (ACV)
(replacement cost minus depreciation equals ACV)
or
Replacement cost
Most dwelling policies that contain replacement cost coverage required the insured to carry coverage for at least ___ percent of the replacement cost value.
80%
When _____coverage is added it “floats, “meaning that articles are covered anywhere, even if not on the premises.
Contents coverage
NYPIUA
New York property insurance underwriting Association created in 1968.
How many days after a covered policy is in effect must a notice of cancellation be accompanied by a statement of the specific reasons for the cancellation of an insurance policy?
The first 60 days
An insurance policy that covers all direct risks of physical loss unless a peril is specifically excluded.
All risk policy
The temporary insurance contract that forms and oral or written agreement between an insurance company and the customer.
Binder
An insurance loss of physical property
Direct loss
Insurance company that sell its policies through salaried employees.
Direct writing companies
A named peril policy for both structure and contents if covered, vandalism or malicious mischief is optional. Covers some indirect losses when they result from a direct loss such as rent value.
DP-1 basic form
A named peril policy that add several more perils. Includes all DP-1 coverage.
DP-2 broad form
And all risk policy (on the structure coverage only,) in which anything not excluded is covered. Contents (if covered) are still named peril, as in the DP too. In clues all DP-1 & DP-2 coverage.
DP-3 special form
Fair plan
FAIR plan stands for Fair Access to Insurance Requirements and is designed to write certain types of property insurance. The New York FAIR plan is among the largest FAIR plans in the country.
Insurance agents who represent only one insurance company and are compensated by salary or commission. Also call the captive agent.
Exclusive agent
When an exclusive agent has a group of agents working for him, he becomes a ____ agent.
General
Representative of the customer: providing insurance quotes and policies from an agent or insurance company on behalf of the customer.
Broker
A Named peril form on both dwelling and structure contents. This is very similar to the DP-1 Basic dwelling policy except vandalism and theft are included.
HO-1 Broad form
A named peril form on both dwelling structures and the contents. This is very similar to the DP-2 broad form dwelling fire policy, except theft is included.
HO-2 broad form
Provides the best coverage for the money. It is the most popular HO coverage form, and is all risk on dwelling and other structures, and contents are still a named peril.
HO-3 special form
Provides all risk coverage on both structure and contents.
HO-5 comprehensive form
This is very similar to the HO-4, except it includes a small amount of coverage for the dwelling unit, which is the interior space owned by the insured.
H0-6 condominium unit owners form
This form is specially designed for all the homes for which the replacement cost of the dwelling exceeds market value.
H0-8 modified form
A package property insurance policy that covers theft, personal liability, and medical payments to others.
Homeowners policy
Insurance agents who represent and sell products for several different insurance companies and the pay commission.
Independent agents
The loss an insured suffers due to the physical loss of property; such as lost rent.
Indirect loss
Do not represent nor are employed by any insurance company; they represent the customer and receive quotes and policies from an insurance agent or company on behalf of the customer.
Insurance broker
A clause added to the buyers property policy to cover the lenders interest in preservation and construction of the property after a loss.
Mortgage clause
The periodic payment for cost of insurance.
Premium
On homeowners policy, each coverage is added to the other.
Stack
A situation in which the cost of repairs or replacement of property exceeds the limit of the insurance policy.
Total loss
Named peril and all risk policies are only for physical loss of property need to provide liability coverage unlike:
Umbrella policies
R
E
V. DP-1
F
L
S
H
A
W
R (iot) (removal) (civil commotion)
E (xplosion)
V (olcano) & V(ehickle) except your own
F (ire)
L (ightening)
S (moke)
H (ail)
A (ircraft)
W (ind)
General exclusions that apply to DP-1 DP-2 & DP-3
OPENW
•Ordinance or law
(loss of property caused by enforcement construction repair demolition)
•Power failure
(Off premises)
•Earth movement
•Neglect (for a nuclear hazard, intentional loss)
•Water damage
Section II of the homeowners policy covers:
Liability
Section 1 of a homeowners policy covers:
Property
Liability coverage includes:
Medical payment to others
Contents coverage comes automatically with a:
Homeowners policy
Dwelling policies do not cover _____unless additional endorsement is purchased.
Contents
- fire
- extended coverage
- sprinkler leakage
- Time element coverage
- vandalism and malicious mischief
Are covered by:
The New York FAIR plan
Fair Access to Insurance Requirements
- buildings (dwelling & commercial properties)
- contents of commercial premises
- household furnishings and property
Are insured by:
NYPIUA
New York Insurance Underwriting Association
How long does coverage generally begin?
12:01 AM The day after the application is received, or a A subsequent date not to exceed 60 days from the received date, provided the property is in insurable condition.
To cancel a policy an insurer must give how many days advance notice?
An insurer must provide written notice of cancellation at least 20 days prior to the effective date.
When a policy is said to have coverage that floats, this means:
Protection for property anywhere in the world, not only on the insured premises.
