S1: Homeowner Flashcards
Homeowners Insurance is divided into (2)
- Property
- Liability
Property is sections (letters)
A B C D
Liability is sections (letters)
E F
Homeowners
A
B
C
D
E
F
A: Dwelling
B: Other Structures
C: Personal Property
D: Loss of Use
E: Personal Liability
F: Medical Payment to Others
Homeowners - Coverage A Dwelling:
insurers against: (2)
- damages to your home from specific perils
- all-risks basis up to a limit
Homeowners - Coverage A Dwelling:
Perils excluded (6)
earthquake, flood, criminal/intentional acts, nuclear, war, terrorism
Homeowners - Coverage A Dwelling:
Doctrine of Proximate
Loss is covered if and only if a covered peril under a policy is proximate cause of covered consequence
Homeowners - Coverage B: Other structures
protection for Garage, Shed, or other structures of dwelling. Actual value or replacement costs
Homeowners - Coverage C: Personal Property
Personal Property and contents of the house. Actual value or replacement costs
Homeowners - Coverage C: Personal Property
Inside Limit
Amount of compensation/settlement
Homeowners - Coverage C: Personal Property
Valued Benefit
Insurer pays appraised vales not market of securities
Homeowners - Coverage D: Loss of Use
compensation for additional living expenses or loss of rental income. Pay for accommodations while repairs are being done on home
Homeowners - Coverage E: Personal Liability
provide third party liability coverage if TP is injured or property damaged on insured premises
Homeowners - Coverage F: Medical Payments to others
provide third party medical benefits if TP is inured on insureds premises without insured being sued
Tenants Package
(those who rent a house) renters insurance, less coverage as fewer risk exposure
Coinsurance
penalizes insured if limit purchased is less than a specified percentage of full value of dwelling
Why does home coinsurance exist
distribution of homeowners heavily weighted to small amount claims. Pose greater risk if can purchase and receive full coverage without penalty
