Questions - Chapter 3 Section 1 - Other Habitational Insurance Forms Flashcards
- What are the four perils that mobile homes are more susceptible to than conventional homes?
1) Fire
2) Windstorm
3) Hail
4) Transportation
- Identify the purpose of “tie downs”.
To provide greater stability during a windstorm insurers require mobile homes be equipped with tie downs. These are straps which go over the unit and which are secured to either side of the foundation.
Explain the purpose of the “dent clause”.
A dent clause excludes payment unless the exterior of the mobile home is actually torn or punctured by the storm.
Identify two expenses included in the “Emergency Removal Expense” and state the amount available.
1) Expenses incurred in disconnecting water and power services.
2) Towing or transporting costs.
Up to 5% of the amount of insurance on the dwelling can be used for reasonable expenses.
Identify two exclusions to the Mobile Home Insurance Form.
1) Loss or damage caused by moving.
2) Loss due to conversion, embezzlement or secretion by any person in possession of the building.
Identify four prospects for a Tenant’s Package policy.
1) Those living in apartments.
2) Those renting a dwelling or any portion of it.
3) Those who receive the privilege to use a dwelling (such as a priest or employees working in a remote location)
4) Owners of a business who occupy private living quarters in a commercial building owned by the business.
Identify two items normally insured within the definition of personal property, Coverage C - Personal Property.
Contents of the insured’s and gardening equipment.
Define ‘condominium’.
A system of separate ownership of individual units in a multiple unit building.
Identify the two items that the Condominium Corporation is responsible to insure.
1) The value of the building (as it was originally constructed) and
2) The value of the common elements
Identify three common elements.
1) Parking Area
2) Landscaping
3) Recreational Areas
In addition to personal property, identify the three unique coverages available to unit owners.
1) Other Essential Coverages
a) Unit Improvements and Betterments
b) Loss Assessment
c) Unit Additional Protection
Under Coverage U2 - Loss Assessment, identify four situations where a special assessment may be levied against each unit owned.
- Under-insurance
- Application of a co-insurance penalty
- Cause of the loss is not an insured peril
- Breach of policy condition
The Seasonal Residence form is used too insure premises used on a seasonal basis. Coverage is available for Named Perils, the same as those provided by the Homeowners Basic Form with two important exclusions or conditions, which are:
1) No coverage provided for the peril of transportation.
2) The following coverages are provided only when indicated on the Coverage Summary Page:
- Burglary
- Vandalism or Malicious Acts
- Glass breakage
On seasonal residence, some insurers will agree to provide the broader coverages of the Homeowners forms, subject to certain eligibility requirements. Identify five requirements:
1) Principal residence must be insured by the same insurer
2) Building must be constructed as a year round residence and occupied at least one day in a sixty day period throughout the year.
3) Building not rented to others.
4) Primary heating must be by controlled furnace or electricity.
5) Building must be accessible by maintained roadway year round.
Identify five underwriting guidelines most insurers follow before they will provide a dwelling under construction with an “all risk” policy.
1) Coverage limited to single or two family dwellings.
2) Dwelling must be owner-occupied upon completion of construction.
3) Coverage must be purchased not later than the completion of the foundation.
4) Amount of insurance purchased must be no less than the estimated completed value.
5) Coverage limited to one year.
