Study 10 - Residential Property Claims

Question 1

What are the three types of residential policies?

Answer 1

Homeowners (A, B, C & D)
Tenants (C & D)
Condo (C & D)

Question 2

What is in coverage A of Section I?

Answer 2

Dwelling

- Main building, attached structures, permanently installed outdoor equipment, outdoor swimming pool

Question 3

What is in coverage B of Section I?

Answer 3

Detached Private Structures

- Structures seperated from the main building by a clear space (garden shed, greenhouse, gazebo, barn/stable, boathouse)

Question 4

What is in coverage C of Section I?

Answer 4

Personal Property

- Contents usual to a home (located at the property/temp removed)

Question 5

What is in coverage D of Section I?

Answer 5

Additional Living Expenses
- Extra costs incurred when an insured person incurs additional cost while property is unfit to occupy as result of insured peril

Question 6

Under what are swimming pools covered in Quebec?

Answer 6

Endorsement

Question 7

What are the three other coverages specific to a Condo?

Answer 7

Unit improvements and betterments
Loss assessment
Unit additional protection

Question 8

What is the name for the condo corporation in Quebec and BC?

Answer 8

Quebec - Syndicate

BC - Strata corporation

Question 9

What questions must an adjuster ask when comparing heat and fire?

Answer 9

Has heat been applied?

What resulting products of fire are in evidence?

Question 10

What are the permitted exclusions of the fire peril in Ontario?

Answer 10

Riot, civil commotion, war, invasion, act of foreign enemy, hostilities, civil war, rebellion, revolution, insurrection or military power

Question 11

What are the permitted exclusions of the fire peril in Quebec?

Answer 11

Civil war, riot or civil disturbance, nuclear explosion, volcanic eruption, earthquake, or other cataclysm

Question 12

What are some typical things an adjuster can recommend to help minimize damage?

Answer 12

• There may be some urgency to board up exposed areas
• There may be a need to air and deodorize the premises
• Washing walls should be attempted as soon as possible to determine what painting would be required
• Protective barriers or fencing may be required to limit any trespassing or further damage
• Complex or large losses still under investigation, property may require on-site security

Question 13

Define water hammer

Answer 13

Pressure shock wave induced in plumbing supply systems when a sudden change occurs to the stability of the water, causing a banging noise in pipes

Question 14

Explain the water hammer exclusion

Answer 14

Exclusion under explosion

Is not excluded in an all-risk form or Quebec policy forms

Question 15

What is the common exclusion of smoke?

Answer 15

Agricultural smudging or industrial operations

Question 16

What are some common examples of falling objects that may cause damage?

Answer 16

Falling trees, meteorites, aircraft parts and debris from blasting operations

Question 17

What are the four main occurrences covered under the water peril?

Answer 17

• Sudden and accidental escape of water from a watermain
• Sudden and accidental escape of water or steam from within a plumbing, heating, sprinkler or ac system or domestic water container located inside the dwelling
• Sudden and accidental escape of water from a domestic water container located outside the building (not insured if caused by freezing)
• Water that enters dwelling from an opening created suddenly and accidentally by another insured peril

Question 18

What must an insured do to obtain coverage for frozen pipes rupturing if they are away for more than four consecutive days?

Answer 18

• Insured arranged for someone to enter the house each day to ensure that heating was being maintained
• Insured shut off the water supply and drained all the pipes and domestic water containers

Question 19

What are the common water exclusions?

Answer 19

• Continuous or repeated seepage or leakage
• Backup from a sewer, sump or septic tank
• Ground water or rising water table
• Surface water
• Shoreline ice building
• Damage by waterborne ice or other objects, whether by rain or otherwise

Question 20

What precedent was set in Easton v. Lanark Mutual Co?

Answer 20

An insured is not required to accept a method of payment that diminishes the value of his home

Question 21

What are the common roofing problems that have nothing to do with hail?

Answer 21

• Moisture trapped in the roofing material may cause bubbling
• Sheathing that expands and contracts may cause wrinkling
• Oils evaporating from the roofing materials may cause an alligator-type pattern on the roofing surface

Question 22

What are the perils within transportation?

Answer 22

• Collision
• Derailment
• Upset
• Stranding
• Overturn
• Sinking

Question 23

What are the restrictions of the theft peril?

Answer 23

• Caused by a tenant in a part that is rented out, the tenants family or tenants employees
• Dwelling under construction
• Animals, birds, or fish
• When by fraud or trickery; a change of ownership in property takes place with the insured’s agreement

Question 24

What are the typical extensions of property?

Answer 24

• Debris removal
• Cost of removing property from premises to protect it from loss for up to 30 days or until the policy term ends (whichever is first)
• Property removed from insured’s property to protect it from damage
• Personal property in transit to another home
• Fire department assessments
• Property coverage from change in temperature due to insured peril
• Loss of freezer food due to interruption of electrical power or mechanical breakdown up to $2000
• Replacement or re-keying of locks if keys are stolen
• Tearing out for repair due to water damage (swimming pool & watermain not covered)
• Arson conviction rewards
• Coverage for credit card, debit card, forgery and counterfeit money up to $1000

Question 25

What is the difference between vacant and unoccupied?

Answer 25

Vacant - no contents & no occupants | Unoccupied - contents & no occupants

Question 26

What facts would an adjuster want to determine regarding a claim?

Answer 26

- When the loss occurred - Specific location from which the loss occurred - Who discovered the loss and what time of day it was - How the loss was discovered - Whether police were notified - Name of the landlord, if applicable - Brief description of the residence, to include its age and the type of construction - Names of household occupants - Nature of any repairs already completed - Insured's story of what they believe happened - Description of item or items damaged that includes the following: ownership of the item, location of the item, make/model/size/serial number, identifying marks on item, details of purchase, storage/repair - Whether a financing contract exists for damaged items: amount owed, to whom

Question 27

What are the additional requirements of theft and burglary claims?

Answer 27

- How entry was gained to the premises - Whether visible signs of the entry exist - Confirmation whether doors and windows are kept locked - Whether an alarm is in place - Whether an alarm is kept activated

Question 28

What background info can be confirmed from the application?

Answer 28

- Name of prior carrier and policy number - Whether insured had prior losses - Details of prior claims - Whether insured ever had insurance cancelled - Details related to why a cancellation occurred

Question 29

What does the adjuster need to do to get the info required for the estimate?

Answer 29

- Note cause and severity of damage - Measure dimensions of floors, walls & ceilings - Documents the number of doors, windows & other openings - Details each restoration activity with a description of the material (identifies whether floor coverings need cleaning, repair or replacement) - Details damage and what must be done to restore the property, starting w/ floor & moving to walls then ceilings - Identify all damaged areas, including framing, windows, doors, vapour barrier, sheathing and exterior finish, insulation, interior finish, walls, ceilings, floor finishes, trim, moulding, finish carpentry, wall & ceiling finishes, staircases, shelving and cabinetry - Identifies what kinds of subcontractor will be needed, such as those specializing in broadloom, wood flooring, plumbing, electrical, heating, ventilation & ac - Consider other damage way ensue because of repairs - Identify how much demolition, debris removal & final cleanup required

Question 30

What are the four items that repair activities are categorized in?

Answer 30

Function Unit amount (area, volume, length) Cost per unit Total cost

Question 31

What is P & O?

Answer 31

Profit and overhead

Question 32

What are the two most common roofs?

Answer 32

Gable and hip

Question 33

What is the line at the top of the roof called?

Answer 33

Ridge

Question 34

What are the lower edges of a roof called?

Answer 34

Eaves

Question 35

What makes up a gable roof?

Answer 35

Two rectangles

Question 36

How much more do hip roofs cost than gable roofs?

Answer 36

10 to 15 percent to cover the waste factor

Question 37

What are the conditions of replacement of a home at replacement cost?

Answer 37

- Repairs or replacement must take place at the same location - Same occupancy must be maintained - Materials of the same quality must be used - Repairs or replacement must take place within a reasonable time after the loss

Question 38

What is guaranteed replacement cost called in Quebec?

Answer 38

Enhanced replacement cost

Question 39

How can lightning damage be assessed?

Answer 39

* A direct strike can cause physical damage to property by vaporizing material. * Lightning damage is sometimes evidenced by a hole in the roof or wall. * Lightning damage can be tracked through the property. * Lightning generally follows a defined path through electrical equipment. * A loss adjuster may appoint a qualified expert to differentiate between lightning damage and other causes of electrical failure in appliances.

Question 40

How does the loss of freezer food extension work?

Answer 40

* Most residential policies provide this extension of coverage; it is essential that the actual wording in force, at the time of the loss, be examined to determine whether an extension applies. * Typically these extensions do not increase the limit of insurance available under the policy. * Where the extensions are in addition to other loss or damage, the deductible applies to the entire loss and not specifically to the extension. * Loss of food in a freezer caused by an interruption of electrical power or mechanical breakdown is covered for up to $2,000 without a deductible. * This extension contains some exclusions, and the amounts insured may vary by policy.