Fundamentals of Property Insurance Flashcards
what is covered under a basic policy
named peril on building, named peril on contents
what is covered under a broad policy
all risk on building, named peril on contents
what is covered by comprehensive policy
all risk on building and all risk on contents (minus named exclusions)
who is insured on any habitational policy (HTCMSR)?
-the named insured, and if living in the house:
–> spouse (married or common law after 3 years or 1 year if either one is natural or adoptive parent of a child also living in the house)
–> relatives of either
–> anyone under 21 in your care
–> students away who actually attend a college, school or uni. (they must be dependent on the named insured or their spouse for financial support)
what is covered under Coverage A?
Dwelling Building and Attached Structures:
-permanently installed outdoor equipment
-outdoor swimming pools and their attachments
-materials and supplies located on or adjacent to the premises designed for the betterment of THIS dwelling or attached structures (theft only if owner occupied)
-building fixtures and fittings temporarily removed for storage and/or repair
-outdoor trees, shrubs and plants at 5% of A up to $500/tree (for these 6 perils only: fire, lightning, explosion, riot, impact by aircraft or land vehicle, vandalism and malicious acts)
What is covered under Coverage B?
Detached Structures:
-extends an additional 10% from coverage A (total)
-buildings or structures located on the premises separated from the dwelling by a clear space. If attached only by a fence line, utility line or similar connection only, it is considered detached.
What is covered under Coverage C?
Personal Property and Contents:
i) ON premises coverage:
-contents of the insured(s) dwelling, and
-other personal property owned, worn, or used by the insured while on the premises which is usual to the ownership or maintenance of a dwelling
** Exception: the property of roomers or boarders not related to the insured is not covered under the Homeowners Forms. These people normally purchase the required covg under a Tenants Pckage Form. If the insured wishes, this covg can be extended to include the uninsured personal property of other which is normally kept at their residence.
ii) OFF premises coverage:
Temporarily removed, anywhere in the world!
Under Coverage C, why do certain items have specific coverage limits?
to keep home insurance prices reasonable. everyone gets the same basic coverage but insurance companies would sell and endorsement for these such items to those people who require customizing their policy.
what items have a specific limit REGARDLESS of loss and what are their limits (if known):
-business property ($2000)
-securities ($2000)
-cash, money ($200)
-watercraft ($1000)
-garden tractors/accessories ($5000)
-spare auto part
-wine and spirits
-cannabis
for what items do limits apply except if loss caused by specified peril, and what are their limits (if known):
-artwork, tapestries and sculptures
-jewellery, watches, gems ($2000)
-fur and fur garments
-numismatic property (ex; coin collections, $200)
-philatelic property (stamps, $1000)
-collectable cards
-bicycles, bikes and attachments
specified perils in a habitational policy include which first 11 perils of the homeowners policy?
-fire
-lightning
-explosion
-sudden and unexpected smoke
-falling object
-impact by aircraft or land vehicle
-windstorm and hail
-riot, vandalism and malicious acts
-water damage
-transportation
What is covered by Coverage D?
Additional Living Expenses:
-extends an additional 20% from Coverage A
-this coverage applies when:
–> the dwelling is damaged by an insured peril
–>the damage is sufficient to make the dwelling unfit for occupancy, or requires that the insured(s) move out while repairs are being made
-pays the new net costs, limited to those expenses which where necessarily incurred for the insured to maintain their normal standard of living.
also covers:
-Fair rental value (if insured relied on rent paid to pay their bills)
-Prohibited Access by Order of Civil Authority
- access to the insured’s property is prohibited by an order of civil authority, the peril which caused the order to be given is a peril insured by the insured’s own policy (up to 2 weeks)
What is covered by Coverage D?
Additional Living Expenses:
-extends an additional 20% from Coverage A
-this coverage applies when:
–> the dwelling is damaged by an insured peril
–>the damage is sufficient to make the dwelling unfit for occupancy, or requires that the insured(s) move out while repairs are being made
-pays the new net costs, limited to those expenses which where necessarily incurred for the insured to maintain their normal standard of living.
also covers:
-Fair rental value (if insured relied on rent paid to pay their bills)
-Prohibited Access by Order of Civil Authority
- access to the insured’s property is prohibited by an order of civil authority, the peril which caused the order to be given is a peril insured by the insured’s own policy (up to 2 weeks)
what is the replacement cost guarantee?
-to qualify for replacement cost, the insured must rebuild the structure on the same location
what happens if insured is not rebuilding on the same location?
least of :
-ACV
-Insured’s financial interest in property
-policy limit
*if NO replacement cost
-if it is a total loss
