Misc. Personal Insurance Flashcards
(17 cards)
What is the definition of a flood?
Overflow of inland or tidal waters; unusual and rapid accumulation of surface water. Mudslides caused by accumulation of water, collapse due to flooding. This does not cover include sewer backup, or broken water pipes, appliances, or water main.
What is the difference between the Emergency Program and the Regular Program?
The emergency program is in effect when the community applies to the National Flood Insurance Program, and remains in effect until the government finalizes the flood insurance rates for the area, where it then goes to the regular program.
What are the limits for payout while under the Emergency Flood Program?
Building: $35,000. Contents (personal property): $10,000 Commercial and Business Buildings: $100,000
What are the limits for payout while under the Regular Flood Program?
Building: $250,000. Contents (personal property): $100,000 Commercial and Business Buildings: $500,000
What items are NOT covered in a flood policy?
Accounts, such as money. Aircraft and motor vehicles. Fences, swimming pools, underground structures such as wells and septic tanks, and structures that are primarily containers like gas or liquid storage tanks (Does not include solos of grain storage buildings)
What cost basis is used for paying out in a flood?
Single-family dwellings (not mobile homes) are the only buildings that may be insured on a replacement cost basis under a flood policy. (VS Actual Cash value). Must be the primary residence. Must carry at least 80% of value.
What is the “Write Your Own Program”?
They are flood insurance policies sold by private insurance companies. The government sets the rates, eligibility requirements, and coverage limitations. The insurer collects the premiums and pays for losses out of those premiums. If the loss exceeds the amount of premiums collected, the government pays the difference. If the insurer collects more than they pay out, they pay the government.
What is the effective day of a flood policy?
12:01 AM on the 30th day after the application and premium is received by the insurance company.
What is the main difference between homeowner’s insurance and mobile home insurance?
Coverage C (Personal Items) is 50% of coverage A in a homeowner’s insurance, but it is only 40% in mobile home insurance. They can reduce that amount below 40% to 30% to get a credit towards their premium.
What are Personal Inland Marine forms? (Floaters)
They provide broad coverage for property moving on land. They provide open peril coverage, except for a few exclusions. (War, wear and tear, gradual deterioration, vermin, insects)
What is the Personal Articles Form?
Provides coverage for nine optional classes of personal property, the same 9 as listed under the homeowners scheduled personal property. Jewelry, furs, cameras, musical instruments, silverware, golf equipment, fine arts, stamps, and coins.
What is the Personal Effects Floater?
Also known as traveler’s baggage, it is designed for people who want to insure their personal belongings while travelling.
How is Boatowners insurance similar to Auto Insurance?
They both cover the boat or car itself, the trailer, the items inside of it, and liability.
What are the 3 categories of watercraft?
- Boats: less than 26 feet in length . Yachts: greater than 26 feet in length. 3. Personal watercraft like jet skis.
What is umbrella insurance?
Provides extra money on top of what a normal policy may pay. (Excess Coverage normally).
When would an umbrella policy be primary insurance?
If you are driving a car in a non US territory, or during personal injury.
What is self insured retention?
It is used like a deductible, only used if it’s used as primary insurance.
