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
What are the 5 coverages of dwelling policies?
Coverage A – Dwelling Coverage B – Other structures Coverage C – Personal property Coverage D – Fair rental value Coverage E – Additional living expenses
In DWELLING POLICIES, within HOW MANY YEARS of a loss may an insured BRING A LAWSUIT against the insurer?
2 years
Which DWELLING COVERAGE FORM(S) will pay for the REPLACEMENT COST of a dwelling?
DP-2 (Broad) and DP-3 (Special)
In dwelling policies, what is the purpose of the AUTOMATIC INCREASE IN INSURANCE ENDORSEMENT that INCREASES THE AMOUNT OF INSURANCE by an ANNUAL PERCENTAGE?
To OFFSET THE EFFECTS of INFLATION
Under Coverage C – Personal Property in the dwelling policy, WHEN will a GUEST’S PROPERTY BE COVERED?
ONLY when the property is AT THE INSURED LOCATION
When a dwelling policy is CANCELLED for NONPAYMENT OF PREMIUM, the insurer must give NOTICE WITHIN HOW MANY DAYS OF THE CANCELLATION?
10 days
WHICH dwelling policy coverage will insure a garage NOT ATTACHED to the primary insured dwelling?
Coverage B – Other Structures
What is the PURPOSE of the NATIONAL FLOOD INSURANCE PROGRAM (NFIP)?
To FILL IN THE GAP in flood coverage left by PRIVATE INSURERS
What does form HO-5 cover?
The DWELLING AND OTHER STRUCTURES, as well as CONTENTS AND PERSONAL PROPERTY
Which dwelling form provides OPEN PERIL COVERAGE on THE BUILDING?
DP-3 (Special)
What HO form covers CONDOMINIUM UNIT OWNERS?
HO-6 (condominium unit owners)
What are the MAJOR COVERAGES included in a Homeowners policy?
Coverage A – Dwelling
Coverage B – Other Structures
Coverage C – Personal Property
Coverage D – Loss of Use
An insured with a Homeowners policy has REMOVED PROPERTY FROM THE INSURED LOCATION to protect it from LOSS THAT COULD BE CAUSED BY A COVERED PERIL. The REMOVAL COVERAGE applies for HOW MANY DAYS?
30 days
DP-3 (Special) is an OPEN-PERIL. What does that mean?
ALL PERILS are insured UNLESS SPECIFICALLY EXCLUDED.
When would THEFT OF PROPERTY OF GUESTS AND RESIDENCE EMPLOYEES be covered under the HO-8 form?
ONLY while ON THE INSURED PREMISES
What are some of the EXCLUSIONS found in ALL 3 dwelling forms?
Earth movement, water damage, power failure, neglect, war, nuclear hazard, intentional loss, freezing of plumbing, ordinance or law, and government action
What HO form covers a HISTORIC HOME with REPLACEMENT COST MORE THAN THE MARKET VALUE?
HO-8 (modified homeowners)
In order for forms HO-2, HO-3, and HO-5 to provide coverage, a dwelling MUST BE INSURED for AT LEAST WHAT PERCENTAGE OF REPLACEMENT COST?
80%
How many OWNER-OCCUPIED RESIDENCES PER COVERED HOME are allowed by Homeowners policies?
An HO policy may insurer a property that has 1 to 4 family owner-occupied residences.
How is the coverage USUALLY WRITTEN for HO-8 forms?
For the MARKET VALUE of the property
In dwelling policies, ANY VOLCANIC ACTIVITY will be considered part of ONE OCCURRENCE if it all happens WITHIN HOW MANY HOURS?
72 hours
What Homeowners policy form is known as CONTENTS BROAD FORM?
HO-4 contents broad form
Under Coverage C of an HO-3 policy, what is the AMOUNT OF INSURANCE provided for PERSONAL PROPERTY?
At least 50% of the Coverage A limit
this applies to all policies except for HO-4 and HO-6
Which DWELLING POLICY COVERAGE will provide protection for CONTENTS DAMAGED BY FIRE in an insured dwelling?
Coverage C - Personal Property
Under what conditions can BROAD THEFT COVERAGE be ADDED TO A DWELLING POLICY?
If the insured is the OWNER-OCCUPANT of the dwelling
Losses caused by VANDALISM AND MALICIOUS MISCHIEF are EXCLUDED FROM COVERAGE if a dwelling has been VACANT for HOW MANY DAYS?
60 days
Coverage of dwelling policies
Coverage A –
Coverage of dwelling policies
Coverage A – Dwelling
Coverage of dwelling policies
Coverage B –
Coverage of dwelling policies
Coverage B – Other structures
Coverage of dwelling policies
Coverage C –
Coverage of dwelling policies
Coverage C – Personal property
Coverage of dwelling policies
Coverage D –
Coverage of dwelling policies
Coverage D – Fair rental value
Coverage of dwelling policies
Coverage E –
Coverage of dwelling policies
Coverage E – Additional living expenses
