The Basics of Property Insurance

Question 1

Peril Types

Answer 1

Basic, Broad, Special

Question 2

Basic Perils

Answer 2

Fire, Lightning, Internal Explosion

Question 3

Extended Coverage Perils

Answer 3

WCSHAVVER, V&MM

Question 4

WCSHAVVER, V&MM

Answer 4

Wind/Civil Commotion/Smoke/Hail/Aircraft/Vehicles/Volcano/Explosion/Riot, Vandalism & Malicious Mischief

Question 5

Broad Peril Coverage

Answer 5

BIG AFFECT

Question 6

BIG AFFECT

Answer 6

Burglary/Ice/Glass/Accidental Water/Freeze/Falling Objects/Electrical Current/Collapse/Tearing Asunder

Question 7

Special Perils

Answer 7

Flood/Earthquake/Intentional Damage/Building Codes/Power Interruption/Government Seizure

Question 8

Valuation

Answer 8

How losses will be paid

Question 9

How is Valuation Paid?

Answer 9

The lesser of: insurable interest, policy limits, ACV, repair cost, replacement cost

Question 10

ACV

Answer 10

Replacement cost - depreciation

Question 11

Coinsurance

Answer 11

Requires insured to carry minimum amount of insurance (80% of the total cost)

Question 12

How Many Basic Types of Construction Are There?

Answer 12

6

Question 13

Construction Classes:

Answer 13

Frame/Joisted Masonry/Noncombustible/Masonry Noncombustible/Modified Fire Resistive/Fire Resistive

Question 14

Construction Class 1

Answer 14

Frame

Question 15

Construction Class 2

Answer 15

Joisted Masonry

Question 16

Construction Class 3

Answer 16

Noncombustible

Question 17

Construction Class 4

Answer 17

Masonry Noncombustible

Question 18

Construction Class 5

Answer 18

Modified Fire Resistive

Question 19

Construction Class 6

Answer 19

Fire Resistive

Question 20

Vicarious Liability

Answer 20

insurance extended to anyone who is liable because of negligence of another person