Unit 5: Risk Management Flashcards
What are the points for evaulation?
ACTR- ACT to lesson Risk
Avoid
Control
Transfer
Retain
What does the Avoid part of risk management mean?
Removing the source of risk (swimming pool).
What does the Control part of risk management mean?
Preparing for an emergency before it happens (installing sprinklers).
What does the Transfer part of risk management mean?
Shifting the risk to another party (taking out an insurance policy).
What does the Retain part of the risk management mean?
Deciding that the chances of the event occurring are too small to justify the expense of any response.
What are the 7 types of insurance for property owners?
- Tenant’s Rental Insurance
- Fire and Hazard
- Flood Insurance
- Liability
- Casualty
- Surety Bonds
- Owners Association
What is tenant’s rental insurance?
Covers tenant’s personal property.
What is fire and hazard insurance?
Covers fire and other hazards, such as windstorm, hail, and smoke damage.
What is flood insurance?
This separate insurance policy is only available if the property is in a community participating in the National Flood Insurance Program.
What is liability insurance?
Covers the risks an owner assumes whenever the public enters the building.
What is casualty insurance?
Covers theft, burglary, vandalism, and machinery damage as well as health and accident insurance.
What is surety bonds insurance?
Covers an owner against financial losses resulting from an employee’s criminal acts or negligence while performing assigned duties.
What is owner’s association insurance?
Covers the common elements in condominiums and cooperatives.
What is Errors and Omissions (E & O) insurance?
Covers brokerage firms, brokers, and salespersons for liability for errors and negligence in listing and selling activities.
What does E & O insurance not cover?
Criminal acts, fraud, failure to disclose material facts or violations of civil rights and antitrust laws.
