Types of Property Policies Flashcards
What do DWELLING POLICIES insure?
- Dwelling only
- contents only
- or BOTH dwelling and contents
According to the LIBERALIZATION CONDITION, if an insurer makes a change to BROADEN COVERAGE in NEWLY ISSUED DWELLING POLICIES, how will that change affect policies ALREADY IN FORCE?
The change will apply AUTOMATICALLY.
What Homeowners policy form is known as a SPECIAL FORM?
HO-3 special form
What are the 2 LIABILITY COVERAGES included in Homeowners policy forms?
Coverage E – Personal Liability, and
Coverage F – Medical Payments to Others
An insured’s house becomes uninhabitable due to damage by a fire. As a result, the insured has to rent an apartment until repairs are made. Which TYPE OF COVERAGE under the DWELLING POLICY will pay for the expense of renting the apartment?
Coverage E – Additional Living Expenses
What are some of the EXCLUSIONS FROM COVERAGE in ALL of the HOMEOWNER’S FORMS?
Land, structures used for business purposes, animals/birds/fish, aircraft, rented property, electronic data, and motor vehicles
What is the MAXIMUM NUMBER OF UNITS in RESIDENTIAL DWELLINGS insurable by a Dwelling policy?
Up to 4 units
WHERE can NATIONAL FLOOD INSURANCE be issued?
ONLY in participating, flood-prone areas
What type of coverage IS INCLUDED in HOMEOWNERS policies, but is NOT available in DWELLING policies?
Liability coverage
What TYPE OF PROPERTY can be covered under INLAND MARINE INSURANCE?
Any type of property that is PORTABLE ON LAND, as well as MEANS OF TRANSPORTATION AND COMMUNICATION
A BASIC DWELLING POLICY automatically provides coverage AGAINST WHAT?
Fire,
lightning, and
internal explosion
In general, what do Homeowners policies cover?
Dwellings used PRIMARILY as PRIVATE RESIDENCES
How are the DWELLING AND OTHER STRUCTURES covered in an HO-3 policy form?
On an OPEN-PERIL basis
What HO form insures a TENANT LIVING IN AN APARTMENT?
HO-4 (tenant broad form)
Which of the 3 DP forms provides the most limited coverage?
DP-1 (Basic)
What are the 3 TYPES OF COVERAGE available in DWELLING POLICIES?
Basic
broad
special
WHY does the HO-4 form NOT provide DWELLING COVERAGE?
HO-4 is written for a TENANT RESIDING in a RENTED DWELLING; the tenant DOES NOT OWN the dwelling.
What are ADDITIONAL COVERAGES available in Homeowners policies WITHOUT ADDITIONAL PREMIUMS? (name several)
Debris removal lawns/plants/shrubs and trees, removal reasonable repairs and fire department service charge
What are EXTENDED COVERED PERILS on a BASIC DWELLING POLICY?
Windstorm or hail, explosion, smoke, aircraft and vehicles, riot or civil commotion, volcanic eruption, and vandalism and malicious mischief
WHARVES
Assuming the insurer and the insured agree on the amount payable for a loss covered under a dwelling policy, HOW SOON AFTER RECEIVING PROOF OF LOSS must the insurer PAY THE CLAIM?
60 days
If 3 volcanic eruptions happen within 48 HOURS, and EACH CONTRIBUTES to property damage, HOW MANY DEDUCTIBLES will apply in the dwelling policy?
1 deductible
all instances of volcanic eruptions that occur within a 72-HOUR period are considered 1 occurrence
What is MYSTERIOUS DISAPPEARANCE?
MISPLACEMENT or LOSS OF PROPERTY without knowledge as to the location, time and cause of the loss
Which DWELLING FORM is called the BROAD FORM?
DP-2
When will DAMAGE TO THE INTERIOR OF THE BUILDING be covered under the FALLING OBJECTS PERIL in the BROAD FORM of the dwelling policy?
ONLY if the interior damage is a DIRECT RESULT of EXTERIOR DAMAGE from a FALLING OBJECT
