Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

CAIB 1 > Chapter 2 Habitational Insurance > Flashcards

Chapter 2 Habitational Insurance Flashcards

(67 cards)

Start Studying
1
Q

Homeowners basic form

A

Named perils on buildings and contents

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Homeowners broad form

A

all risk on buildings, named perils on contents

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Homeowners comprehensive form

A

All risks on all items, subject to exclusions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Common Characteristics

A
  • Clear language approach
  • Common format or structure
  • Policy definitions are uniform
  • Extensions of coverage
  • Basis of claim payment
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Who is insured:

A

Spouse/partner of the named insured
Relatives either the named insured or spouse
Anyone under 21 in the care of insured
Students away at school

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Dwelling

A

The building described on the Coverage Summary page occupied by the named insured as a private residence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Premises

A

All land within the lot lines where the dwelling is located

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Property Coverage

A

A - Dwelling Building
B - Detached Private Structures
C - Personal Property
D - Additional Living Expenses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Liability Coverage

A

E - Personal Liability
F - Voluntary Medical Payments
G - Voluntary Payment for Damage to Property
H - Voluntary Compensation for Residence Employee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Coverage A – Dwelling Building

A

Includes the dwelling and attached structures, PLUS
• Permanently installed outdoor equipment
• Outdoor swimming pools and attached equipment
• Materials/supplies for construction, alteration or repair of the dwelling or private structures on the premises (NO THEFT)
• Building fixtures/fittings temporarily removed for repair or seasonal storage (10% amount of insurance)
• Outdoor trees/shrubs/plants (5% amount of insurance)
Max $500 per item
Fire, lightning, explosion, aircraft/land vehicles, riot, vandalism

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Coverage B – Detached Structures

A

Any structure on the premises separated from the dwelling by a clear space:
• May be attached by a fence or utility line
• Must be used for private purposes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Coverage C – Personal Property

A

Three types of property are covered:
• On Premises Coverage

• Off Premises Coverage

• Property of Students
While temporarily away from home attending school

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Exclusions to coverage C Personal Property

A

• Motorized vehicles and their equipment
EXCEPTION –motorized lawnmowers, other gardening equipment, snow blowers

Wheelchairs/scooters with more than 2 wheels used to carry persons with physical disabilities

  • Camper units, truck caps, trailers or their equipment
  • Aircraft or their equipment
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Special Limits of Insurance: All Causes of Loss:

A 
Business Property - $2000
Securities - $2000
Student Property - $2500
Money, Cash Cards - $200
Garden Tractors - $5000
Watercraft - $1000
Computer Software - $2500
Spare Auto Parts - $1000
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Special Limits of Insurance: Theft Only

A 
Jewellery/Watches - $2000
Numismatic Property - $200
Manuscripts, Stamps - $1000
Collectible Cards - $1000
Each Bicycle - $500
**Limit does not apply to losses OTHER than theft
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Coverage D: Additional Living Expenses

A

• Increased costs to maintain same standard of living after an insured peril causes damage to insured property
Payable for reasonable time to do repairs or time to settle elsewhere

  • Fair Rental Value
  • Prohibited Access by Civil Authority
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Fair Rental Value

A

From a portion of the dwelling that cannot be occupied due to damage cause by an insured peril

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Prohibited Access by Civil Authority

A

When an insured peril in the area makes it unsafe to be on
the insured premises
2 weeks coverage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

On Premises Coverage

A

Contents of Dwelling

Other property owned/used on premises usual to ownership or maintenance of a dwelling

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Off Premises Coverage

A

Temporarily off premises anywhere in the world

Personal property stored in a warehouse for theft only

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Extension Coverage: Debris Removal

A

Additional 5% provided when loss greater that amount of insurance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Extension Coverage: Property Removal

A

Coverage for 30 days or expiry of policy is provided to protect removed property.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Extension Coverage: Moving to Another Home (within Canada)

A

Coverage is automatically extended to insure property in transit and at another location up to 30 days, or expiry of the policy (whichever is first).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Extension Coverage: Fire Department Expenses

A

Up to $1,000 for fire department charges (no deductible applies).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Extension Coverage: Change in Temperature
Physical damage to the dwelling or equipment due to an insured peril, • Property being claimed was in the dwelling at time of loss.
26
Extension Coverage: Freezer Food
* $2,000 (no deductible) * Accidental power interruption * Mechanical Breakdown (replaces the freezer if due to food spoilage)
27
Extension Coverage: Lock replacement
* $500 (no deductible) | * To replace or re-key locks
28
Extension Coverage: TEAR OUT
Repairs to other parts of the building torn apart to repair water damage.
29
Extension Coverage: Arson Conviction Reward
* $1,000 (no deductible) | * Information leading to the conviction of the arsonist
30
Extension Coverage: Credit or debit cards
* $1,000 (no deductible) | * Forgery and receipt of counterfeit money
31
Extension Coverage: Inflation Protection
* Automatically increases the amount of insurance due to inflation for amount of insurance under Section I * This is applied when there is a loss during the policy period, without extra premium charge
32
Deductibles
Applies to all property losses unless stated otherwise Applies to each occurrence Applies to the loss, not the limit of insurance
33
Dwellings & Detached Structures
Replacement Cost (with due diligence & dispatch) - On same location - For the same occupancy - From materials of similar quality Excludes increase cost due to by-laws Reverts to actual cash value if not repaired or replaced
34
Guaranteed Replacement Cost
Insurer will pay the full cost of repair or replacement even if it is more that the limit for the dwelling building, if underwriting criteria met: - Dwelling must be insured to 100% of value at all time - Insured must advise insurer of improvements increasing dwelling value within 90 days of start of work
35
Personal Property
Replacement cost basis, except: - Articles that cannot be replaced. - Articles for which age contributes to value. - Property not maintained in good, workable condition. - Property not used for its original purpose Electronic media and books of account are subject to a special basis of settlement: cost of materials only (excludes cost to recreate lost data).
36
Determining Indemnity
Difficult to determine with rules such as Pair & Set or Parts Factors Used – the policy will pay the least of: • ACV of the damaged property at the time of loss • Insured’s interest in the property • Limit of insurance
37
CLAIMS PAYMENT OTHER BASIS OF SETTLEMENT BUILDINGS SUBJECT TO PROVISIONS:
- Replacement with due diligence and dispatch - Shall be on the same/adjacent site - Like kind/quality of materials for same occupancy - Settlement will be made once work complete
38
CLAIMS PAYMENT OTHER BASIS OF SETTLEMENT PROPERTY, INSURED MUST SHOW:
Property was in good working condition and used for its original purpose at the time of loss Property was repaired/replaced promptly
39
Coverage Limits for Coverage A
• Based on 100% of the Replacement Cost of the Dwelling
40
Coverage Limits for Coverage B
• Up to 10% of Coverage A
41
Coverage Limits for Coverage C
• Up to 70-90% of Coverage A
42
Coverage Limits for Coverage D
• Up to 20% of Coverage A
43
Single Coverage Limit
where Coverage A-D are combined to one limit
44
Homeowners Basic Form IBC 1151 Included Perils:
Fire, lightning, explosion, smoke Falling object, impact by aircraft/land vehicle, riot vandalism, malicious acts, water damage, windstorm or hail, glass breakage, transportation, theft or attempted theft, electricity.
45
Basic Form: Fire, Lightning, Explosion
Fire • Excludes application of heat Lightning • Includes damage to electrical devices or appliances Explosion • Covers all explosions except ‘Water Hammer’
46
Homeowners Basic Form; Smoke
“Damage due to a sudden, unusual, and faulty operation of any heating or cooking unit in or on the premises, but not smoke from fireplaces.” • Damage from fireplace not insured
47
Homeowners Basic Form: Falling Object
An object that is falling which strikes the exterior of the building
48
Homeowners Basic Form: Impact by Aircraft/Vehicle
Does NOT include: • Damage caused by an insured or any employee of the insured • Damage to animals
49
Homeowners Basic Form: Riot, Vandalism, Malicious Acts
Riot • All damage covered Vandalism and Malicious acts covered with exceptions
50
Homeowners Basic Form Vandalism & Malicious Acts, exclusions:
• While under construction or vacant Even if permission granted • Damage caused by insured • Theft or attempted theft
51
Homeowners Basic Form: Water Damage Coverage
• Sudden and accidental escape of water or steam from: Water main Heating, plumbing, air conditioning system, domestic water container inside & outside the dwelling  Outside the dwelling is covered is NOT covered for freezing Water entering premises through hole created by an insured peril
52
Homeowners Basic Form: Water Damage NOT covered
• Freezing during the normal heating season if away more than 4 consecutive days • Seepage or leakage of water • Sewer backup • Ground water or rising water tables • Surface water (unless due to insured water loss) • Shoreline ice build-up or waterborne ice • To the watermain or piping • While vacant or under construction, regardless of permission
53
Homeowners Basic Form: Windstorm & Hail
Opening must be created for the interior of the dwelling and personal property inside to be covered.
54
Homeowners Basic Form: Windstorm & Hail NOT covered
* Interior damage, unless storm creates opening to building * Outdoor radio/TV antennae * Weight of ice or snow * Waves or floods, whether driven by wind or not
55
Homeowners Basic Form: Glass Damage
Covers building glass when broken accidentally • Accidental glass breakage includes shifting of ground or other earth movement. • Accidental glass breakage includes accidents.
56
Homeowners Basic Form: Glass Damage NOT covered
• Does not include coverage while the building is vacant or under construction Regardless if permission is granted
57
Homeowners Basic Form: Transportation
Damage to personal property by collision, upset, overturn, derailment, stranding or sinking of any automobile or attached trailer in which insured property is being carried. • Includes any other conveyance of a common carrier
58
Homeowners Basic Form: Theft/Attempted Theft
Theft defined: all means of taking property without the owner’s consent.
59
Homeowners Basic Form: Theft/Attempted Theft NOT covered
* Personal property left at locations you own, rent, occupy unless temporarily living there * From part of dwelling rented to others if theft by tenant, member of their household or their employee * Materials when dwelling is under construction * To animals, birds or fish * Resulting from trickery or fraud
60
Homeowners Basic Form: Electricity
Sudden and accidental damage from artificially generated electrical currents
61
Homeowners Basic Form: Property that is not insured
* Buildings used for business or farming * Property at fairground/exhibition for purpose of exhibition * Illegal property, subject to forfeiture
62
Homeowners Basic Form: Nor Does the Policy Insure Loss or Damage When....
• Occurring after the property is vacant beyond 30 days • Resulting from intentional or criminal acts, or failure to act by the insured or anyone acting on their behalf • Involving the application of Heat (ensuing damage covered) • Resulting from the release, discharge or dispersal of fuel oil
63
Homeowners Broad Form (IBC 1153)
All Risks • Section A – Dwelling • Section B – Detached Structures • Section D – Additional Living Expenses Named Perils • Section C – Personal Property • Same as the Basic Form
64
Homeowners Comprehensive Form (IBC 1155)
All property owned by the insured is covered on an ‘All Risks’ basis The coverage is determined by the exclusions
65
Comprehensive Form | Exclusions - PROPERTY:
Buildings or Structures used for business or farming Property at a fairground or on exhibition Property Illegally acquired Evidence of debt or title Automobiles (except lawnmowers & wheelchairs) Camper units, truck caps, trailers or their equipment Aircraft or their equipment Electronic equipment of the above & watercraft
66
Special Policies and Endorsements
``` Watercraft Personal Computers Coin & Stamp Collections Jewelry, Furs Antiques Fine Arts Cameras Silverware, goldware, pewterware TV antenna and satellite dishes Musical instruments ```
67
Home Based Business
Insurers may be willing to endorse habitational policies with a Home Based Business Endorsement • Coverages vary, but most insurers include: Business Contents Computer Hardware & Software Temporary Locations In transit coverage

CAIB 1 (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions