unit9 Flashcards
dwelling and homeowners policies exclude losses caused by what
flood
what is NFIP
the National flood insurance program to make flood insurance available through federal subsidization
who manages the NFIP
the Federal emergency management agency FEMA
what two types of flood insurance programs are available
emergency and regular
emergency program limits for 1. building 2. personal property (contents) 3. commercial 4. business personal property
- 35,000
- 10,000
- 100,000
- 100,000
regular program limits for 1. building 2. personal property (contents) 3. commercial 4. business personal property
- 250,000
- 100,000
- 500,000
- 500,000
minimum deductible for flood insurance 1. building 2. contents
both $1,000
standard deductible under 1. emergency program 2. regular program 3. house built before 1978
- 2,000
- 1,000
- 500
property protected at another place outside of flood hazard for how many days
45
personal property in basement or outside is not covered
what is “Increased Cost of Compliance”
policy that will pay up to 30,000 to cover extra expenses related to the cost to repair flood damage being increased due to state or local flood management laws or ordinances.
what is captured water
water damage from sewer backup, broken pipe, dishwasher etc., which is not covered under flood insurance
definition of flood
temporary water from a natural source
covers two or more acres that are usually dry
mudflow
water from inside the house is NOT a flood
Flood Exclusion
- Accounts
- Lawns
- Vehicles
- Fences
- underground structures
- newly constructed over water
- structures that are primarily containers exception: silos and grain storage buildings
Value of Losses for flood insurance
replacement cost RC available only for single family dwellings if 80% coverage carried
everything else ACV
Write your own program
insurance company writes the policies using its name
NFIP sets the rates and underwriting rules
insurance company is paid a fee for its expenses
what kind of dwelling policy form can be used for mobile homes and what are the conditions
only the basic form and the mobile home must be permanently placed
what HO form can be used to cover the contents of a mobile home but not the mobile home itself
HO4-renters
a mobile homeowners endorsement can be attached to what homeowners policies
HO2 and HO3
% coverage for mobile home for personal property is reduced to what of the dwelling coverage
40%, it’s 50% on homeowners forms
loss of use is reduced to what of the dwelling coverage for mobile homes
20%, its 30% on most homeowners forms.
broader coverage for personal property can be obtained through what are the two most common forms
personal inland marine forms
personal articles
personal effects
what is a pair or set condition?
what are the two reimbursement options given by Inland marine floaters?
states that the insurance company will not be liable for the entire value of a set when only a part is damaged
- repair, replace, or restore the set
- pay the insured the difference between the ACV of the full set and the ACV of the undamaged part
personal inland marine floater exclusions
war nuclear hazard wear and tear gradual deterioration insects vermin inherent vice
personal articles floaters form provides coverage for what 9 categories
same as homeowners scheduled personal property endorsement
jewelry furs fine art golf equipment cameras silverware musical instruments stamps coins
the agreed value loss settlement form is used for what
scheduled property only
the standard loss settlement uses what
the lesser of
ACV
repair, or replace cost, or amount of insurance specified in the policy
feature of personal article form is automatic coverage for what
newly acquired property in the category of jewelry furs cameras musical instruments fine art
personal article property coverage
30 days for 25% of the insurance of 10,000 whichever is less
fine art: 90 days, 25%
personal effects floater a.k.a.
traveler’s baggage
3 keys to applications
- agent doesn’t have binding authority
- initial premium pain in full
- 30 day waiting period
- waived if bought when house has a mortgage
- applies to requests to increase coverage on an existing policy
2 key’s to personal articles floater
- provides coverage for 9 specific categories
- standard loss settlement and agreed value loss settlement
which inland marine form provides open peril coverage for the insured’s personal property while traveling
personal effects form
3 keys to mobile home package policy
- up to 10% of the mobile home coverage can be extended to cover other structures
- it may include collision coverage
- it includes liability coverage similar to section 2 of the homeowners policy
which inland marine form provides open peril coverage for the same categories of property covered under the homeowners scheduled personal property endorsement
personal articles form
