Standard Fire Policy Flashcards
Standard Fire Policy (SFP)
the basis for all non-marine property insurance contracts in North Carolina
SFP covers three (3) named perils
- Fire
- Lightning
- Removal
(coverage for personal property located in an insured dwelling that is in danger of destruction if not removed due to a fire or lightning, 5 days when stored somewhere else)
Extended Coverage Endorsement (ECE)
endorsement for SFP
- Wind - exterior
- Hail - exterior
- Aircraft
- Riot
- Vehicles
- Explosion - internal explosion resulting from a water heater
- Smoke - exclusions are smoke from a fireplace or industrial operation
Vandalism and Malicious Mischief (VMM)
*additional Extended Coverage Endorsements
covers losses caused by the willful and malicious damage or destruction to insured property
Sprinkler Leakage
*additional Extended Coverage Endorsements
covers accidental leakage or discharge from a sprinkler system caused by a malfunction or operational failure
Standard Fire Policy (SFP) Exclusions
- Accounts, bills, currency, deeds, money, evidence of debt and securities;
- Acts of war, insurrection, and civil war;
- Losses attributed to the insured’s failure to protect property from further damage.
- Civil authority
- Any increase in hazards (For example, adding a wood-burning stove without notifying the insurer is an increase in hazards);
- If the building has been vacant or unoccupied for sixty (60) consecutive days or more before the loss, coverage is not provided.
WC - SHAVER
*Extended Coverage Endorsement
Wind
Civil commotion (riot)
Smoke
Hail
Aircraft
Vehicle
Explosion
Riot
Actual Cash Value (ACV)
the cost of replacing the property minus depreciation
Insurance company must notify the insured within ___ DAYS after the proof of loss is submitted, by the insured, stating that the insurance company wants to settle by repairing, rebuild or replacing the insured damaged property
30
Pro Rata Liability
obligates each insurance company to pay claims based on the percentage of coverage carried in each policy.
For example, damage to property that costs $20,000 means that the insured will receive $10,000 each from each insurance company issuing coverage for the same risk
Interest of the Insured
The insured can only recover up to his or her (insurable) interest in the damaged property
Requirements in the Event of a Loss
(a) Promptly notify the insurance company
(b) Protect the property from further damage
(c) Allow the insurance company to inspect the property;
(d) Supply the insurance company with a complete inventory indicating which goods are damaged or destroyed within sixty (60) DAYS of the loss; and
(e) Cooperate with the insurance company investigating the loss
The insurance company must settle the claim within ___ DAYS after submission of the proof of loss from the insured.
60
The insured has up to ____ YEARS to bring a lawsuit against the insurance company after meeting the requirements of filing a claim.
3
sTAIf the insurer cancels the Standard Fire Policy (SFP), ____ DAYS notice must be given to the insured and ___ DAYS notice must be given to any mortgagee.
5 & 10
