Flashcards in Chapter 14 Property Insurance Deck (29):
What is Property Insurance ?
It protects a home or income/business property against any physical damage or loss of assets in case of fire theft or vandalism.
What is the regulatory agency that oversees all types of insurance in New York?
The NYS Department of Financial Services.
What is Liability Insurance?
Insurance coverage to protect against claims alleging that one negligence or inappropriate action resulting in bodily injury or property damage.
What is a package policy?
A policy that includes several different types of coverage such as property insurance and liability insurance.
What is Perils ?
Events cause by weather or people that do the damage.
*Explain Homeowners 1 (Ho-1)?
Insured the home and contents against listed perils
Few insured sell this policy
Insured home and contents and perils in HO-1
Also the perils my include failing objects weight of ice , water over flow plumbing HVAC.
The most widely used
The standard used
Covers home for all risk of physical lose except flood,earthquakes war
Protects the home against the same perils as HO-3
Also know as the market value policy
A modified version of the HO-1 policy
Provides actual cash value in place of replacement cost for a building
The company’s settlement figure will not pass the amount necessary to repair or replace the dwelling
Generally used when the replacement value of the property exceeded its market value
Explain the HO-4 or the Tenants or Cooperative Owners Policies?
A renters or tenants insurance policy
The homeowners and tenants policy reimburse tenants for increase in living expenses if the home becomes uninhabitable because of damage
*Explain the Condominium Unit Owners Polices or HO-6?
Provides property coverage for any alterations , appliances fixtures and improvements within insured limits.
Common areas should be insured through polices issued to the cooperative owners and condominium association these polices insure against damage to contents of the apartment or when people are injured or suffer property damage
* what does Actual Cash Value Mean?
The insured is reimbursed for the replacement cost minus the PHYSICAL DEPRECIATION of the lost or damaged property.
What is replacement cost?
It means that the insured is covered and reimbursed for the actual cost of replacing the damaged property.
(The cost of buying another )
What is an Endorsement?
A document attached to a policy that modifies or changes the original policy in some way.
A typical homeowners policy typically includes how much worth of liability coverage? But most insurance professionals and mortgage lenders advise or require how much liability coverage?
300,000 to 500,000
What is the New York Property Issurance Underwriting Association (NYPIUA)?
A pool of all insurance company’s writing fire insurance in New York.
Besides Fire what else coverage does the NYPIUA offer?
Vandalism,malicious mischief and sprinkler leakage.
Normally how much higher is NYPIUA?
* What is the National Flood Insurance Program (NFIP)?
Covers for loses resulting in floods.
Who administers the NFIP?
FEMA (The Federal Emergency Insurance Program).
According to NY State law an insurance company may cancel a homeowners or tenants policy by issuing a cancellation notice during what?
The first 60 days as long as the notice s states the reason for cancellation.
After a policy has been infect for 60 days it may not be cancelled or renewed for how long?
By law if a insurance company decides not to renew they must provide a notice at lease how many days but no more that how many days?
45 and 60
What is a premium?
The amount a property owner has to pay for insurance coverage.
What is a deductible?
The amount the insured must pay toward a claim before receiving any policy benefits.
What is Commercial General Liability Insurance?
A basic liability policy that covers four forms of injury bodily injury and property damage that results in actual physical damage or loss, personal injury and advertising injury.
What does a All Risk policy package cover?
Package covers expenses incurring when business is suspended due to disaster related event such as a tornado and can include coverage for the cost such as rent payroll and utilities.