Section 1: Lesson 7.1 Property Concepts & Doctrines Flashcards
I want to take care of my home. there is the dwelling itself, and we have an outhouse immediately adjacent to the home that serves as our bathhouse and toilet. Under what part of my policy would this property be covered?
These properties are considered real property and would be covered under Coverage A of your homeowner’s policy.
What about the new wheelchair I purchase for my son.?
That would covered under Coverage B-Personal Property of your homeowners policy
If we have a fire and have to move out for a while repairs are made, is there any coverage for additional housing and living expense?
Certainly, this coverage is referred to as Additional Living Expense or ALE, and it is provided under Coverage C of your homeowner’s policy.
My new business has so much stuff in the building like desks, chairs, equipment etc…. Is that covered?
All of that will be under Coverage B of the commercial insurance policy your buying.
What if my store catches fire and my business has to shut down for a while for repairs to be made? Is there any insurance to cover that?
Thats called Business Interruption coverage, and its providing by your Commercial Property Policy under Coverage C.
Describe the difference between a peril and a hazard
A peril is a cause of loss, like a fire. A hazard is a condition that exists beforehand that increases the likelihood of such a loss, like a messy storage room or garage that contains lots of toxic chemicals.
An example of a hazard is:
Driver constantly drives at excess speeds, follows other drivers closely, and weaves in and out of traffic.
An example of a peril is:
Hurricane strikes Houston, earthquake hits California, water pipe cracks in wall
A doctrine of proximate cause is defined as:
If there is an unbroken chain of events , or series of conseqeunces, flowing from the initial loss caused by the insured peril to a subsequent loss, the insured peril causing the initial loss will be considered the primate cause of the subsequent loss.
A tornado rips through a wet Texas neighborhood. as it strikes one home and rips away the eastern wall of the home, a gas line is ruptured and the fire starts that burns the remainder of the home. What was the proximate cause of the total loss of the home?
Tornado
Fortunately, the tornado missed the next door neighbors home., but the fireside not and it spread to the neighbors home. The fire department put neighbors fire out and damage was limited only half the house. Unforntuanly the water form the hose cause irreparable damage to the ceiling,walls, carpet, and personal property. What was the proximate cause of the loss of the neighbors house?
Fire
Power companies in South Texas began initiating black outs to conserve electricity. During one of the outages John’s garage freezer failed and his deer meat valued at $1500, $600 in frozen food spoiled. He filed a claim under his HO-C policy. His deductible was $1000. How was this claim resolved?
In this case, the loss was not caused by a covered peril. Because there was no coverage, there was not payment.
If my house burn down, which loss would not be considered an indirect loss of the fire, and not be covered?
the mortgage payment on the home
If my son was in an automobile accident a mile away form the house striking a pole causing outage to the neighborhood including our house. Which would be a direct loss of the auto accident?
the damage to the son’s car
If a carpenter doing renovations in a commercial building accidentally cuts through water pipe and the water floods the building, which would be a direct loss?
Water damage to walls and flooring.
