Study 3 Part 2 Flashcards
(129 cards)
1
Q
What is a WILDFIRE?
A
An ‘uncontrollable or destructive fire, especially in a forest.’ It’s covered under the FIRE peril in property policies.
2
Q
Are TORNADOES covered under named-perils or all-risks forms?
A
YES, under the WINDSTORM or HAIL peril.
3
Q
What does the COLLAPSE peril commonly involve?
A
Loss or damage from structural collapse, e.g., from snow load on a roof; NOT covered in named-perils but covered in all-risks (unless otherwise excluded).
4
Q
When is GLASS BREAKAGE covered under named-perils?
A
Typically INCLUDED as a named peril.
5
Q
What is EARTH MOVEMENT in insurance terms?
A
Movement like EARTHQUAKE, LANDSLIDE, or SNOWSLIDE, usually EXCLUDED unless added by endorsement (e.g., IBC 1149 Earthquake Endorsement).
6
Q
How does the IBC 1149 EARTHQUAKE ENDORSEMENT affect coverage?
A
It adds coverage for earthquake-related perils and has its own higher deductible.
7
Q
What causes SEWER BACKUP within a dwelling?
A
Often due to a clogged or blocked sewer system, leading to water entering the home from drains (can be covered by endorsement).
8
Q
When is SEWER BACKUP considered a FLOOD?
A
If external FLOOD WATERS touch any part of the insured property, sewer backup is then classified as FLOOD.
9
Q
What is a SUMP SYSTEM?
A
A system that removes ground water around a foundation, preventing basement flooding (excluded unless added by endorsement).
10
Q
What does IBC 1142 LIMITED SEWER BACK UP ENDORSEMENT cover?
A
Loss from sewer backup ONLY if no flood waters are on the premises within 72 hours.
11
Q
What is the IBC 1148 EXTENDED WATER ENDORSEMENT?
A
An endorsement that covers FLOOD, SEWER BACKUP, and other water-related risks, removing the 72-hour flood limitation.
12
Q
Define FLUVIAL FLOODING.
A
Flooding due to a river or watercourse overflow (e.g., riverbanks breaching after heavy rain). EXCLUDED from standard coverage.
13
Q
Define PLUVIAL FLOODING.
A
Flooding caused by heavy rainfall overwhelming drainage systems, leading to water accumulation. EXCLUDED from standard coverage.
14
Q
Is ICE DAMMING covered by default in property insurance?
A
NO, it’s excluded but can be covered by IBC 1144 ICE DAM ENDORSEMENT.
15
Q
What is ICE DAMMING?
A
Water damage from ice or snow blocking eaves or gutters, leading to leaks in the roof.
16
Q
Is WATER SEEPAGE covered under property insurance?
A
NO, it’s a maintenance issue, defined as continuous or repeated leakage.
17
Q
What is MOULD DAMAGE and when is it covered?
A
Damage from mould or fungi, covered only if it directly results from an insured peril (e.g., sudden water damage).
18
Q
What types of technology do insurers use to manage NON-STANDARD PERILS?
A
Satellite imagery, machine learning, and geospatial analysis to monitor, predict, and model risk.
19
Q
How can MACHINE LEARNING assist insurers with non-standard perils?
A
By analyzing historical data and environmental factors to estimate potential losses from events like wildfires or floods.
20
Q
What does GEOSPATIAL ANALYSIS allow insurers to assess?
A
The proximity of insured assets to potential catastrophe zones, improving risk assessment accuracy.
21
Q
Why is EARTHQUAKE INSURANCE less common than it should be in high-risk areas?
A
Some buyers assume government support or are unaware it’s excluded in standard policies.
22
Q
What is an ALL-RISKS policy?
A
A policy that covers all perils except those specifically excluded, often providing broader coverage than named-perils forms.
23
Q
How does the IBC 1144 ICE DAM ENDORSEMENT help homeowners?
A
It provides coverage for water damage caused by ice build-up on roofs and gutters.
24
Q
What is a ‘maintenance issue’ in property insurance?
A
An issue due to lack of upkeep, like continuous water seepage, which is typically excluded from coverage.
25
Why might SUMP PUMP FAILURE lead to uncovered losses?
Because water damage from groundwater rising into a basement is excluded unless an endorsement is added.
26
Define SUDDEN AND ACCIDENTAL DAMAGE.
Unexpected, unintended damage from a specific event, as opposed to ongoing wear or gradual damage, which is often excluded.
27
What are NON-STANDARD PERILS in insurance?
Perils NOT NAMED in the IBC habitational forms but commonly insured under ALL-RISKS property insurance (e.g., wildfire, hurricane).
28
Are WILDFIRES covered under named-perils or all-risks property policies?
YES, under the FIRE peril.
29
Under which peril are HURRICANES covered?
WINDSTORM or HAIL peril (covered in both named-perils and all-risks policies).
30
Is COLLAPSE covered under NAMED-PERILS?
NO, it’s excluded (unless directly caused by a named peril like FIRE).
31
When is ACCIDENTAL BREAKAGE of property covered under ALL-RISKS?
If NOT FRAGILE or BRITTLE (otherwise, only if damaged by specific events like accidents involving vehicles).
32
Are EARTH MOVEMENTS (e.g., earthquakes) covered under named-perils or all-risks?
NO, generally EXCLUDED (but can be added by IBC 1149 EARTHQUAKE ENDORSEMENT).
33
How does the IBC 1142 LIMITED SEWER BACK UP ENDORSEMENT work?
Covers sewer backup WITHOUT FLOODING; excludes coverage if flood waters touch insured's property within 72 hours.
34
Is SUMP PUMP FAILURE covered under all-risks or named-perils?
NO, but can be covered by the SAME ENDORSEMENT as SEWER BACKUP (IBC 1142).
35
Does IBC cover DAMAGE from FLOODING (e.g., rivers, tsunamis)?
NO, flood damage is EXCLUDED unless added by IBC 1148 EXTENDED WATER ENDORSEMENT.
36
What does the IBC 1144 ICE DAM ENDORSEMENT cover?
Damage from water entering via ICE DAMMING (accumulated snow or ice on roof).
37
Is CONTINUOUS SEEPAGE of water (e.g., a leaky roof) covered?
NO, considered a MAINTENANCE issue, not sudden or accidental.
38
When is MOULD covered under property insurance?
Only if resulting from an INSURED PERIL (e.g., water from a burst pipe).
39
How do INSURERS use TECHNOLOGY to manage risk from non-standard perils?
Through DATA (satellite imagery, weather sensors), MACHINE LEARNING, and RISK MODELS to assess and predict catastrophic events.
40
What is a HAZARD in property insurance?
A HAZARD is an attribute of the property or its surroundings that increases the likelihood or severity of a PERIL, which may lead to a LOSS.
41
How does a HAZARD affect the likelihood of a PERIL?
The greater the HAZARD, the greater the likelihood that a PERIL will occur or cause more severe DAMAGE.
42
What are the THREE types of HAZARDS in property insurance?
PHYSICAL HAZARD, MORAL HAZARD, and MORALE HAZARD.
43
What is a PHYSICAL HAZARD?
A PHYSICAL HAZARD concerns the property itself, such as its CONSTRUCTION TYPE, location, or available PROTECTION (e.g., FIRE DEPARTMENT, BURGLAR ALARM).
44
What is an example of a PHYSICAL HAZARD?
An above-ground OIL TANK is a PHYSICAL HAZARD because it could leak or explode if struck by a vehicle.
45
What is a MORAL HAZARD?
A MORAL HAZARD occurs when a person INTENTIONALLY causes DAMAGE or injury, often involving CRIMINAL or FRAUDULENT ACTS.
46
What is an example of a MORAL HAZARD?
A DISGRUNTLED EMPLOYEE pouring GASOLINE into a machinery's WATER-INTAKE VALVE to cause a fire is an example of a MORAL HAZARD.
47
What is a MORALE HAZARD?
A MORALE HAZARD occurs when damage or injury is caused by CARELESSNESS or lack of concern, not INTENTIONAL harm.
48
What is an example of a MORALE HAZARD?
A caretaker leaving a pile of SAWDUST in a workshop, which later causes a FIRE or a SLIP-AND-FALL ACCIDENT, is an example of a MORALE HAZARD.
49
What are KEY PERIL HAZARDS in property insurance?
KEY PERIL HAZARDS include FIRE, LIGHTNING, WATER PERILS, WIND, HAIL, ROOF COLLAPSE, and EARTHQUAKES.
50
Why is FIRE a significant hazard in property insurance?
FIRE is one of the most EXPENSIVE PERILS for insurers, even though it is not the most frequent. It is often SEVERE and can cause major DAMAGE.
51
What role do SMOKE DETECTORS play in FIRE hazards?
SMOKE DETECTORS are essential to detect FIRE in its early stages, allowing it to be EXTINGUISHED before it becomes severe.
52
What are common FIRE HAZARDS in domestic settings?
COOKING HAZARDS, UNATTENDED PORTABLE HEATERS, CLOTHES-DRYER LINT, OVERLOADED CIRCUITS, and FAULTY WIRING.
53
How can COOKING HAZARDS be minimized?
By keeping the COOKING AREA clean and free of COMBUSTIBLES, using HOODS over stoves, and ensuring items like CURTAINS or CHILDREN'S ARTWORK are far from the stove.
54
What should be done to prevent a GREASE FIRE in the kitchen?
Remove COMBUSTIBLES from the cooking area and provide a HOOD over the stove to prevent a fire from spreading.
55
What are the dangers of UNATTENDED PORTABLE HEATERS?
PORTABLE HEATERS can OVERHEAT or malfunction if KNOCKED OVER, causing FIRES.
56
How can the hazards of PORTABLE HEATERS be reduced?
HEATERS should be ULC-APPROVED, placed away from COMBUSTIBLES, and used only when people are present.
57
What is a common hazard associated with CLOTHES DRYERS?
LINT BUILD-UP in the DRYER can cause FIRES.
58
How should CLOTHES-DRYER HAZARDS be prevented?
The LINT TRAP should be cleaned after every use, and the dryer must be PROPERLY VENTED.
59
What hazard does an OVERLOADED ELECTRICAL CIRCUIT present?
OVERLOADED CIRCUITS can cause the WIRING to OVERHEAT, leading to a potential FIRE.
60
What should be done when a CIRCUIT BREAKER trips or a FUSE blows?
Investigate and fix the malfunctioning APPLIANCE or overloaded CIRCUIT. Do not use FUSES of higher AMPERAGE than specified.
61
What are the risks of FAULTY or OUTDATED WIRING?
WORN INSULATION or loose connections can cause ELECTRICAL ARCING, leading to FIRES.
62
How does OLD WIRING affect FIRE hazards?
OLD or OUTDATED WIRING, such as ALUMINUM or KNOB-AND-TUBE WIRING, increases the HAZARD of FIRE.
63
What risk is associated with UNATTENDED CANDLES?
CANDLES left unattended can cause FIRES, especially if they are placed on FLAMMABLE SURFACES or KNOCKED OVER.
64
How can CANDLE HAZARDS be minimized?
CANDLES should be placed in proper containers and never left UNATTENDED. They should never be placed on HOLIDAY TREES.
65
What are the FIRE hazards related to WOOD FIREPLACES and WOOD STOVES?
These devices can significantly increase FIRE EXPOSURE and require professional installation, regular maintenance, and proper clearance from COMBUSTIBLES.
66
How should a WOOD FIREPLACE or STOVE be maintained to reduce FIRE risk?
The CHIMNEY should be cleared of CREOSOTE RESIDUE regularly, and a SCREEN should be used to prevent EMBERS from escaping.
67
What is a LIGHTNING HAZARD in property insurance?
The tallest structure in an area is most likely to be struck by LIGHTNING. In rural areas, LIGHTNING RODS and GROUNDING WIRES are commonly used to reduce the risk.
68
How can LIGHTNING HAZARD be mitigated in rural areas?
By equipping the TALLEST STRUCTURE with LIGHTNING RODS and GROUNDING WIRES to safely direct the LIGHTNING to the ground.
69
Why might TREES be used to reduce LIGHTNING exposure?
TREES, when planted strategically, can help DIVERT LIGHTNING but should be far enough from the property to avoid damage from broken branches.
70
What are WATER PERILS in property insurance?
WATER PERILS include FLOODING, STORM SURGES, and WATER DAMAGE caused by water-related devices or external water sources.
71
How does WATER DAMAGE usually occur in properties?
WATER DEVICES (like HOT WATER HEATERS and pipes) increase exposure, especially if not PROPERLY MAINTAINED or installed.
72
What is a WATER DAMAGE HAZARD?
The presence of WATER-CONTAINING DEVICES, like HOT WATER HEATERS, increases the risk of WATER DAMAGE.
73
How can WATER DAMAGE be minimized in homes with hot water heaters?
Installing a PLASTIC/TIN PAN around the heater, using a MONITORED WATER DETECTOR, or switching to TANKLESS SYSTEMS can reduce the risk of damage.
74
What simple risk management step can homeowners take to prevent WATER DAMAGE?
Turning off the MAIN WATER VALVE when leaving for extended periods (e.g., vacations) to limit water flow in case of damage.
75
Why is FLOODING a significant concern in property insurance?
Properties in FLOOD PLAINS or coastal areas are more exposed to STORM SURGES and FLOODING due to SEVERE WEATHER EVENTS.
76
How can homeowners in flood-prone areas minimize flood damage?
By installing SEWER BACKFLOW VALVES, moving valuables out of basements, and using FLOOD MAPS to identify risk zones.
77
How does AGING MUNICIPAL INFRASTRUCTURE contribute to flooding?
OLD SEWER SYSTEMS in urban areas are prone to OVERFLOWING during heavy rainfall, especially in densely populated areas.
78
Why are properties with BASEMENTS more exposed to SEWER BACKUP?
BASEMENTS are lower in elevation, increasing exposure to SEWER BACKUP damage.
79
How can SEWER BACKUP be prevented in properties?
Installing a BACKFLOW VALVE and regularly maintaining the SEWER LATERAL can help reduce the risk.
80
How does SEWER BACKUP affect the value of a property?
FINISHED BASEMENTS with EXPENSIVE FURNISHINGS increase the potential for significant damage and costly claims.
81
What is a SUMP PUMP HAZARD?
Properties with BASEMENTS near the WATER TABLE are at risk of GROUND WATER damage if the SUMP PUMP fails or is turned off.
82
How can the risk of a SUMP PUMP FAILURE be minimized?
Using REDUNDANT PUMPS, POWER BACKUPS, and a HIGH-WATER MONITORING DEVICE to notify homeowners of failures or rising water.
83
What is ICE DAMMING?
ICE DAMMING occurs when MELTED SNOW refreezes in EAVESTROUGHS, causing CLOGGING and preventing proper water drainage, leading to WATER DAMAGE under the roof shingles.
84
What causes ICE DAMMING on a roof?
HEAT ESCAPING through a poorly insulated roof causes SNOW MELT, which refreezes in the EAVESTROUGHS during cold nights, creating ICICLES and WATER DAMAGE.
85
How can ICE DAMMING be prevented?
Ensuring PROPER ROOF INSULATION and addressing BROKEN WINDOWS in the attic can prevent HEAT ESCAPE, reducing the chance of ICE DAMMING.
86
What regions of Canada are more prone to WIND and HAIL hazards?
Areas like ALBERTA'S HAIL ALLEY, known for frequent and severe HAIL STORMS, have an increased exposure to WIND and HAIL damage.
87
How does WIND or HAIL affect property insurance?
Properties in SEVERE WEATHER ZONES are more exposed to WIND or HAIL damage, especially if the ROOF COVERING is vulnerable, particularly with aging materials.
88
What increases the risk of ROOF COLLAPSE in Canada?
HEAVY SNOWFALLS, especially during extreme winters, increase the risk of ROOF COLLAPSE due to the SNOW LOAD, particularly on FLAT or LOW-PEAKED ROOFS.
89
How can ROOF COLLAPSE due to snow be prevented?
PROFESSIONALS should regularly clear EXCESS SNOW from FLAT ROOFS to prevent SNOW ACCUMULATION and potential COLLAPSE.
90
What causes an EARTHQUAKE in Canada?
TECTONIC PLATE MOVEMENT causes EARTHQUAKE SHOCK WAVES, which can level cities, especially in areas near ACTIVE FAULT LINES, such as BRITISH COLUMBIA.
91
What are the factors that increase exposure to EARTHQUAKE DAMAGE?
Factors include proximity to HIGH EARTHQUAKE ZONES, SOIL TYPE, BUILDING CONSTRUCTION, and the AGE of the structure.
92
How does the SOIL TYPE affect EARTHQUAKE DAMAGE?
Certain soil types like CLAY or UNCONSOLIDATED SILT can LIQUIFY during an earthquake, causing structures to sink.
93
How does CONSTRUCTION type impact EARTHQUAKE risk?
CONCRETE and MASONRY are more prone to CRACKING and COLLAPSING than STEEL or WOOD-FRAME structures, which are more flexible.
94
Why is the AGE of a building important for EARTHQUAKE RISK?
Buildings built before 1980 may not meet updated EARTHQUAKE CODES, increasing their vulnerability to DAMAGE unless retrofitted.
95
How do tall buildings respond to EARTHQUAKE shock waves?
TALL BUILDINGS amplify the EARTHQUAKE SHOCK WAVES unless they have EARTHQUAKE-DAMPENING FEATURES to absorb the stress.
96
What additional exposures come with dwellings heated by FUEL OIL?
External FUEL TANKS pose risks of THEFT (oil), VANDALISM (foreign substance leading to furnace damage), and IMPACT DAMAGE (vehicle or falling branch). If there’s a FIRE, oil acts as FUEL, and the TANK could EXPLODE. OIL SPILLS can happen during DELIVERY (overfill or faulty connections) and are costly to clean up. Loss due to FUEL OIL RELEASE or RUST/CORROSION is generally EXCLUDED in insurance policies.
97
What is the FUEL OIL HAZARD?
The increased risk in homes using OIL HEATING, including exposure to THEFT, VANDALISM, IMPACT DAMAGE, FIRE RISK, OIL SPILLS, and costly cleanup. INSURANCE POLICIES often EXCLUDE coverage for these specific risks.
98
How does the CONCENTRATION OF VALUES increase exposure?
When high-value items (LUXURY FURNITURE, ELECTRONICS) are concentrated in one area, a loss from a PERIL (e.g., FIRE, THEFT, WATER DAMAGE) will result in a LARGER CLAIM. The severity of the claim increases due to the higher value and FRAGILITY of these concentrated items.
99
What is the CONCENTRATION OF VALUES HAZARD?
The risk that arises when VALUABLE ITEMS are grouped together in a specific area of the home, increasing the severity of LOSS due to DAMAGE, THEFT, or other RISKS.
100
What are the risks related to COLLECTIONS in a dwelling?
Many COLLECTIONS (e.g., RECORDS, SNOW GLOBES, BEER CANS) are highly personalized and may not hold the same value to an INSURER. PERILS such as THEFT, BREAKAGE, and IRREPARABLE DAMAGE become more likely. COLLECTIONS can also attract unwanted ATTENTION, increasing the exposure to THEFT. FRAGILE COLLECTIONS, like PORCELAIN FIGURES or CHINA, are especially vulnerable to DAMAGE.
101
What defines the COLLECTIONS HAZARD?
The risk that arises when a homeowner possesses VALUABLE or SENTIMENTAL COLLECTIONS (e.g., RECORDS, FIGURINES, or ANTIQUES) that are vulnerable to THEFT, DAMAGE, or LOSS, particularly when they cannot be easily REPLACED.
102
Why does HOARDING increase risk?
HOARDING can significantly increase FIRE RISK (due to COMBUSTIBLE materials), obstruct FIREFIGHTING efforts, and suggest poor MAINTENANCE, which may lead to STRUCTURAL FAILURE. Extreme HOARDING can lead to SPONTANEOUS COMBUSTION, FLOOR COLLAPSE, or other dangerous conditions.
103
What is the HOARDING HAZARD?
A risk arising from the accumulation of large amounts of PROPERTY, increasing FIRE HAZARDS, impeding EMERGENCY RESPONSE, and often indicating poor MAINTENANCE or potential STRUCTURAL ISSUES in the dwelling.
104
How does VACANCY increase exposure to risks?
Unoccupied properties increase the risk of VANDALISM, THEFT, and further DAMAGE if issues (e.g., broken pipes) aren’t immediately addressed. VACANCY can lead to worsening conditions, such as WATER DAMAGE from FROZEN PIPES, due to lack of MAINTENANCE or attention.
105
What is the VACANCY HAZARD?
The increased risk when a dwelling is UNOCCUPIED for extended periods, raising exposure to THEFT, VANDALISM, and worsened DAMAGE from undetected problems like broken PIPES or a lack of proper MAINTENANCE.
106
How does a building's AGE affect exposure to risks?
Older buildings often have outdated systems (e.g., PLUMBING, WIRING, ROOFING) that can lead to increased risk of DAMAGE. Failure to maintain or replace AGING components, such as ROOFS, PLUMBING, and WIRING, increases the likelihood of issues like WATER DAMAGE, FIRES, or ELECTRICAL FAILURES.
107
What is the AGE HAZARD?
The risk associated with the AGE of a building and its systems (ROOFING, PLUMBING, WIRING), which increases the likelihood of DAMAGE or FAILURE if not properly MAINTAINED or REPLACED.
108
What factors increase exposure to THEFT?
The risk of THEFT is higher if the property is VACANT, contains LUXURY ITEMS, or lacks proper SECURITY MEASURES (e.g., BURGLAR ALARMS). NEIGHBORHOOD factors such as proximity to other properties, quality of local LAW ENFORCEMENT, and visible signs of WEALTH (e.g., LUXURY ITEMS) all contribute to increased exposure.
109
What factors contribute to the THEFT HAZARD?
Increased risk of THEFT due to VACANCY, VALUABLE or LUXURY ITEMS in the home, poor SECURITY (e.g., no BURGLAR ALARM), and NEIGHBORHOOD factors like proximity to other homes and the presence of local LAW ENFORCEMENT.
110
How does a NEIGHBOURHOOD impact exposure to risks?
Proximity to other buildings or hazards (e.g., FACTORIES, RAILROADS) increases the risk of DAMAGE from FIRE, EXPLOSION, or THEFT. The quality of local FIRE PROTECTION, LAW ENFORCEMENT, and the HISTORY OF CRIME in the area all affect the risk level for the property. URBAN areas generally present higher exposure to THEFT compared to RURAL areas.
111
What defines the NEIGHBOURHOOD HAZARD?
The risk to a dwelling based on its LOCATION, including proximity to other buildings, HAZARDS (e.g., RIVERS, AIRPORTS), and the quality of local FIRE and POLICE SERVICES. Proximity to COMMERCIAL AREAS or dense URBAN settings can increase exposure to THEFT, FIRE, and other PERILS.
112
What UNUSUAL HAZARDS increase exposure?
Items like FUEL CONTAINERS (e.g., PROPANE, GASOLINE), HAM RADIOS (which attract LIGHTNING), and RACE CARS (which involve WELDING, HIGH-OCTANE FUEL, and VALUABLE TOOLS) introduce additional RISKS. These increase the chance of FIRE, THEFT, and DAMAGE due to the unique activities or equipment they involve.
113
What are UNUSUAL HAZARDS in a dwelling?
Hazards posed by items or activities uncommon in a typical home, such as storing FUEL (GASOLINE, PROPANE), operating a HAM RADIO (with LIGHTNING risk), or working on RACE CARS (which increases FIRE, THEFT, and DAMAGE risks).
114
What is PROPERTY INSURANCE?
PROPERTY INSURANCE is first-party insurance that compensates the OWNER or USER for LOSS or DAMAGE to INSURED PROPERTY caused by an INSURED PERIL.
115
What is a PERIL in insurance?
A PERIL is an EVENT that may cause INJURY, LOSS, or DESTRUCTION. In insurance, it must be an ACCIDENTAL event (FORTUITY) to be insurable.
116
What’s the difference between NAMED-PERILS and ALL-RISKS coverage?
NAMED-PERILS covers LOSS or DAMAGE caused by only the specific perils listed, while ALL-RISKS covers LOSS or DAMAGE from any peril unless EXCLUDED.
117
What are EXCLUSIONS in property insurance?
EXCLUSIONS remove certain LOSSES from coverage by listing types of PROPERTY not insured or PERILS that are NEVER or SOMETIMES not insured against.
118
Which PERILS are commonly insured against in Canadian property policies?
Common PERILS include:
* FIRE
* LIGHTNING
* EXPLOSION
* SMOKE
* FALLING OBJECT
* IMPACT (aircraft/vehicle)
* RIOT
* VANDALISM or malicious acts
* WATER DAMAGE
* WINDSTORM or HAIL
* GLASS BREAKAGE
* TRANSPORTATION
* THEFT (and damage from attempted theft)
* ELECTRICITY
119
What other perils may affect dwellings?
Additional perils may include:
* WILDFIRE
* HURRICANE
* TORNADO
* COLLAPSE
* ACCIDENTAL BREAKAGE
* EARTH MOVEMENT
* SEWER BACKUP
* SUMP PUMP FAILURE
* FLOOD
* ICE DAMMING
* WATER SEEPAGE
* MOULD and WOOD ROT
120
What is a HAZARD in property insurance?
A HAZARD is a characteristic of the property or its surroundings that can either cause a PERIL or make the LOSS due to a PERIL more SEVERE.
121
What are the key types of HAZARDS in property insurance?
* PHYSICAL HAZARD: Concerns the PROPERTY itself.
* MORAL HAZARD: When a person intentionally causes DAMAGE or INJURY.
* MORALE HAZARD: When a person unintentionally causes DAMAGE or INJURY, often due to carelessness.
122
What are KEY PERIL HAZARDS that could lead to significant property damage?
* FIRE HAZARD
* LIGHTNING HAZARD
* WATER PERILS HAZARDS
* WATER DAMAGE HAZARD
* FLOOD HAZARD
* SEWER BACKUP HAZARD
* SUMP PUMP HAZARD
* ICE DAMMING HAZARD
* WIND or HAIL HAZARD
* ROOF COLLAPSE HAZARD
* EARTHQUAKE HAZARD
123
What are KEY CONDITION HAZARDS that could increase risk or severity?
* FUEL OIL HAZARD
* CONCENTRATION OF VALUES HAZARD
* COLLECTIONS HAZARD
* HOARDING HAZARD
* VACANCY HAZARD
* AGE HAZARD
* THEFT
124
What is a SUMP PUMP HAZARD?
A hazard related to the failure or malfunction of a sump pump.
125
What is an ICE DAMMING HAZARD?
A hazard caused by the formation of ice dams on roofs, leading to water damage.
126
What is a WIND or HAIL HAZARD?
A hazard resulting from damage caused by strong winds or hail.
127
What is a ROOF COLLAPSE HAZARD?
A hazard associated with the potential for a roof to collapse.
128
What is an EARTHQUAKE HAZARD?
A hazard related to the risk of damage from earthquakes.
129
What are KEY CONDITION HAZARDS that could increase risk or severity?
FUEL OIL HAZARD, CONCENTRATION OF VALUES HAZARD, COLLECTIONS HAZARD, HOARDING HAZARD, VACANCY HAZARD, AGE HAZARD, THEFT HAZARD, NEIGHBOURHOOD HAZARD, UNUSUAL HAZARDS.
