Study 5 - Anatomy of a Property Policy: The Homeowners Forms

Question 1

A Guide to Your Policy Page

Answer 1

1st explanatory statement: Property Coverages
2nd explanatory statement: Liability Coverages
Agreement between the Insurer and the Insured

Question 2

Domestic Water Container

Answer 2

• hot water heating tanks and their piping and radiators
• hot water storage tanks and associated piping
• water reservoirs and dispensers, whether contained in an appliance or not
• bathtubs, sinks, or toilets; and
• aquariums or waterbeds

also includes;

• outdoor private swimming pools or wading pools
• ornamental pools or fish ponds; and
• hot tubs

Question 3

Definition of insured

Answer 3

Includes people other than the named insured, though these others are not named anywhere in the policy

• the insured’s spouse
• the relatives of either the insured or the insured’s spouse; and
• any person under 21 in their care
• also includes a dependent child who is temporarily living away from the principal residence while attending school or university

Question 4

Coverage A - Dwelling Building

Answer 4

Applies to the dwelling itself and other property on the premises

Question 5

Coverage B - Detached Private Structures

Answer 5

Examples of common detached structures include: detached garages, garden sheds, greenhouses, etc.

Question 6

Coverage C - Personal Property

Answer 6

Broken down into 3 parts:

1. Contents of dwelling and personal property owned, worn, or used on the premises
2. Property away from the premises
3. Property of a student

Question 7

Coverage D - Additional Living Expenses

Answer 7

The losses covered under coverage D are consequential losses that arise when certain circumstances force temporary unoccupancy in all or part of the insured dwelling.

Combines 3 coverages:

1. Additional living expense
2. Fair rental value
3. Prohibited access

Question 8

Guaranteed Replacement Cost

Answer 8

An undertaking by the insurer to pay the cost of repairs to or replace the dwelling building even if it is more than the amount of insurance on the dwelling building, provided certain conditions are met in addition to those that normally govern settlement at replacement cost.

Question 9

Differences between IBC Homeowners Forms

Answer 9

Basic - Named perils, including theft, glass breakage, and transportation
Broad - All risks on the dwelling building and detached private structures; the same named perils as insured by the basic form on the personal property
Comprehensive - All risks on all items