Property Insurance Chapter 5

Question 1

What are tenants policy form?

Answer 1

personal property and personal liability, it is also a type of habitation insurance that is designed to meet theses coverage needs.
all risk policies also called comprehensive coverage or specified perils policies also called basic coverage

Question 2

tenants forms contain the following sections of coverage:

Answer 2

1. personal property insurance- coverage for the cost of repairing or replacing the contents of the dwelling damaged by an insured peril
2. Personal liability insurance- coverage for paying amounts awarded to a plaintiff as damages in a lawsuit against the insured for bodily injury or damage to property and coverage for the cost of defending the insured in a lawsuit.

Question 3

What are the additional living expenses insurance?

Answer 3

coverage for the additional expenses incurred when an insureds dwelling is damaged by an insured peril to such an extent that the insurances cannot live in it until it is repaired.

Question 4

what is required on the application of in property insurance?

Answer 4

1. The location of the dwelling
2. how the unit or apartment was constructed
3. The applicants claims history
4. The amount of insurance requested since there is no building, the applicant specifies the amount of personal property insurance required

• Property temporarily removed
• loss due to temperature change
• coverage on watercraft

the additional living expenses insurance limit under the tenants policy is equal to a percentage of the personal property insurance limit (usually 20%) rather than a percentage of the dwelling building limit as under a homeowner policy

Question 5

explain the condominium owners policy form?

Answer 5

The condominium declaration defines the unit and common elements of the corporation and specifies the boundaries of each of them. a purchaser of a condominium acquires clear and full ownership of a specific condominium unit within a building and a shared interest in the common elements, such as structure columns,beams, floors, wall, elevators, hallways, utilities, recreational facilities, parking areas, gardens and land

provincial and territorial legislation regulates most aspects of condominiums, including how condominium corporations are created and governed and how condominium are managed

Question 6

what does condominium unit owner policy contains?

Answer 6

1. Personal property insurance:- coverage for the cost of preparing or replacing the contents of the dwelling damaged by an insured peril
2. Personal liability insurance :- coverage for paying amounts awarded to a plaintiff as damages in a lawsuit against the insured for bodily injury or damages to property and coverage for the cost defending the insured in a lawsuit
3. additional living expense insurance:- coverage for the additional expenses incurred when an insureds dwelling is damaged by an insured peril to such an extent that the insured cannot live in it until repaired
4. Unit Improvement and betterment’s:- permanent additional or charges made to a unit
5. loss assessment
6. unit additional protection :- definitions of the property insured are replaced with definitions applicable to a condominium. the word unit replaces the word dwelling used in the homeowners forms

Question 7

what information is requested for the application of the condominium unit owners policy?

Answer 7

1. the location of the dwelling
2. how the unit or apartment was constructed
3. the applicants claims history
4. the amount of insurance requested:- since there is no building, the applicant specifies the amount of personal property insurance required.

Extension of coverage :

1. property temporarily removed
2. loss due to temperature change
3. coverage on watercraft

Question 8

discuss Improvement and betterment’s?

Answer 8

this increase in value is not insured under the condominium corporations master policy but rather under the individual unit owners personal property policy since it belongs solely to the individual owners

the policy provides that if loss or damage to improvements or betterment’s is repaired or replace within a reasonable time, using materials of similar quality to the original property, payments will be based on the actual cost of repairs or replacement without deduction for depreciation.

Question 9

what is loss assessment coverage?

Answer 9

1. Under insurance
2. application of penalty under a coinsurance clause
3. the cause of loss is not an insured peril or is specially excluded under the building policy
4. breach of a policy condition by the condominium corporation

Question 10

What is unit additional Protection?

Answer 10

the condominium unit owner policy also pays for any damage to the unit, excluding the insureds improvement and betterment.

if, within a reasonable time after the loss or damage, repairs or replacement are made with materials of similar quality, payment will be made without deduction for depreciation. if the loss or damage is not replaced or repaired within a reasonable time, payment will be based on the actual cash value at the time of the loss, which is the replacement cost, less the amount of depreciation.

Question 11

mobile homeowner policy forms:

Answer 11

Mobile homes are a form of manufactured housing .
mobile home policies contain the following section coverage
1. personal property insurance :- coverage for the cost if repairing or replacing the building and contents of the mobile home damaged by an insured peril
2. Personal liability insurance :- coverage for paying amounts awarded to plaintiff as damages in a lawsuit against the insured for bodily injury or damage to property and coverage for the cost of defending the insured in a lawsuit.
High rate of depreciation of a mobile home, replacement insurance is not usually available for the building though it might be available for the contents.

Question 12

discuss secondary locations in property insurance?

Answer 12

Secondary locations are another class of residential risk. they includes cottages or seasonal risks, secondary residence or rental properties.

Question 13

what is cottage or seasonal dwelling in property insurance?

Answer 13

cottages o seasonal dwelling are often insured under the insureds home policy as a separate location or covered on a seasonal dwelling wording. these wordings often provides limited coverage, usually for named perils on building and contents. theft coverage is not usually available, but burglary insurance may be. Burglary means the unlawful removal of property from premises by visible forcible entry. theft is a broader term and this coverage is generally not available under this form.
Many seasonal dwelling polices do not includes burglary or vandalism and malicious acts coverage.

Question 14

What are the other coverage that are not included on a seasonal dwelling wording?

Answer 14

1. Vandalism and malicious mischief
2. Glass insurance
   Homeowners policies provide extension for outbuilding and fences in addition to the amount of insurance provided on the dwelling

Question 15

Explain what is rental property?

Answer 15

rented dwelling are usually insured on fire and additional perils wordings excluding vandalism coverage although all risk coverage may be available
to cover the loss of income exposure, the insured requires business interruption insurance which is sometimes called loss of income insurance

Question 16

Discuss liability?

Answer 16

insureds also require coverage for their liability arising out of the secondary locations- whether seasoned or rented dwelling

Question 17

what are farm policy forms?

Answer 17

a farm policy is a type of insurance that is designed to meet the coverage needs of farmers.
the liability is extended to include both personal liability and business liability.
Generally farm polices provides named perils coverage for property, including personal and farm building, detached private structures, personal property and additional living expense

Question 18

What is meant by Extended Coverage in property insurance ?

Answer 18

farm forms typically have two part extended coverage provision. one part applies to the farmers dwelling and contents and the other part to the rest of the farm.
the chief differences between the EC coverage for dwelling and contents and for the remainder of the farm include:
1. The explosion coverage for the dwelling and contents is wider
2. rupture or escape of water from heating, plumbing or air conditioning systems and falling objects are only covered for dwelling and content
3. the windstorm or hail coverage differs.

Question 19

What are the rebuilding clause- differed payment

Answer 19

This provides that if a building is damage, the insurance company initially will pay only 50% of the total payable. to collect the remainder, the insured must actually rebuild within 9 to 12 months of the loss and within 200 feet of the damaged building

Question 20

what are the other farm coverage involve in property insurance?

Answer 20

these may be added by endorsement or written separately. two types of property insurance that farmers typically require are farm machinery and equipment floater and livestock insurance

Question 21

What is farm machinery and equipment floater?

Answer 21

a typical coverage is on mobile machinery and equipment against all risks, subject to policy conditions and exclusion anywhere in Canada and the united states, and subject to 80 percent coinsurance. Each of the larger items is listed,and there is an unscheduled amount for miscellaneous

Question 22

What is liability?

Answer 22

liability arising out of ownership, use and operation of the principal dwelling and out of the personal acts of the insured and liability arising out of farm premises, farming activities ,and products liability are covered on the same policy

Question 23

the liability section of the policy differs from the homeowners form in that it is split into two parts
A.) Personal Liability:- this covers the legal liability arising out of the insureds personal acts anywhere in the world. this is similar to the coverage provide d under the homeowners package policy
B.) premises liability:- this covers the premises specified in the policy and expressly covers farming activities. pollution or environmental liability coverage may be available from some insurers at an additional premium but it is subject to rigorous underwriting when it is offered.

The farmers liability policy also includes tenants legal liability and voluntary medical and voluntary property damage payment extensions.

Answer 23

the liability section of the policy differs from the homeowners form in that it is split into two parts
A.) Personal Liability:- this covers the legal liability arising out of the insureds personal acts anywhere in the world. this is similar to the coverage provide d under the homeowners package policy
B.) premises liability:- this covers the premises specified in the policy and expressly covers farming activities. pollution or environmental liability coverage may be available from some insurers at an additional premium but it is subject to rigorous underwriting when it is offered.

The farmers liability policy also includes tenants legal liability and voluntary medical and voluntary property damage payment extensions.