Personal Property Insurance (Habitational Forms) Chp. 6

Question 1

What are the 3 types of Personal Property Homeowners Forms?

Answer 1

1. Basic Form
2. Broad Form
3. Comprehensive Form

Question 2

Define Named Insured:

Answer 2

Person(s) named on the policy

Question 3

Define Dependents and describe 4:

Answer 3

People “dependent” on the insured any of the following:
1. Husband or Wife by legal marriage: Or common Law spouse that has lived together for 3 yrs o 1 year if they have a child together
2. Relatives of Either: that are permanently residing with Named Insured
3. Any person under 21 y/o in their care: care = dependent upon insured (excludes boarders and roomers because they are considered tenants)
4. Students attending school: must be supported by Named Insured or spouse if temporarily away for school (I.e at a dorm)

Question 4

Define Dwelling:

Answer 4

Private Residence

Question 5

Define Premises:

Answer 5

The address named on the policy (within lot lines)

Question 6

What losses are insured in Section 1: Property Coverages of the Habitational Forms?

Answer 6

1. Coverage A - Dwelling Building
2. Coverage B - Detached Private Structures
3. Coverage C - Personal Property
4. Coverage D - Additional Living Expenses

Question 7

What losses are insured in Section 2: Liability Coverages: Included in ALL Homeowners Forms?

Answer 7

1. Coverage E - Personal Liability
2. Coverage F - Voluntary Medical Payments (no deductible)
3. Coverage G - Voluntary Payment for Property Damage (no deductible)
4. Coverage H - Voluntary Compensation for Residence Employees (no deductible)

Question 8

Extensions of Coverage: Included in ALL Homeowners Forms:

Answer 8

1. Moving to another home in Canada: cover new place and property while in transit for up to 30 days
2. Debris Removal: +5% of Coverage A
3. Property Removal” expands removal clause to 30 days
4. Credit/Debit Card, Forgery, and Counterfeit Money: up to $1,000
5. Inflation Protection: limits automatically adjusted by inflation for mid-term losses
6. Tear Out: will repair walls, etc. tore out to get to a broken water pipe behind it (Excludes swimming pool, and public water main)
7. Change in Temperature: Covers indirect damage to personal property inside dwelling if dwelling was damaged by insured peril
8. Freezer Foods: spoilage due to power failure or freezer breakdown up to $2,000 (Freezer is replaced if ruined by the food no deductible)
9. Lock Replacement: Up to $500 for stolen keys and reported to police
10. Fire Department Charges: Up to $1,000 the fire department from another city bills you
11. Arson Conviction Reward: Up to $1,000 for info leading to conviction (no deductible)

Question 9

What is the Basis of Claim Payment?

Answer 9

Building + Property - Deductible (applied once to total amount of loss)

Question 10

In relation to the Basis of Claim Payments, how is Dwelling and Detached Private Structures compensated for if not repaired?

Answer 10

Replacement Cost (RC) or Actual Cash Value (ACV)

Question 11

In relation to the Basis of Claim Payments, what are the rules for repairing/replacing Dwelling and Detached Private Structures?

Answer 11

1. Must repair with similar materials, same location and same occupancy
2. Guaranteed Replacement Cost Coverage: covers full cost to repair even if greater than limit (must qualify)
3. Excludes By-law costs

Question 12

Basis of Claim Payments in relation to Personal Property rule:

Answer 12

Replacement cost excluding media and accounting records

Question 13

Basis of Claim Payments in relation to Personal Property ACV for:

Answer 13

1. Fine Art, Antiques and memorabilia (hard to replace)
2. Property not well maintained
3. Property no longer used for original purposes
4. Property not replaced within 180 days (insured can opt for ACV first but has 180 days to change mind back to RC)

Question 14

Section 1 - Property Coverages: Coverage A: Dwelling Buildings: limit of insurance covers…

Answer 14

1. Dwelling + attached private structures: ie. main house + garages, porches attached, etc.
2. Permanently attached outdoor equipment: ie. swings, tree house, sprinklers
3. Fixtures temporarily removed: while at repair/seasonal storage (up to 10% of dwelling limit)
4. Materials and supplies on premises: used in construction or repairs (not new home building)
5. Outdoor swimming pool + attached equipment: in or above ground (ie. hot tubs)
6. Outdoor Plants: 5% of dwelling limit up to $500 per plant (covers: fire, lightning, explosion, impact, riot, vandalism. Excludes windstorm and hail)

Question 15

Section 1 - Property Coverages: Coverage B: Detached Private Structures

Answer 15

Separated from main building by open space: +10% of Coverage A

Question 16

Section 1 - Property Coverages: