Study 7 Flashcards
(16 cards)
What is an endorsement in property insurance?
An amendment to an existing policy that modifies its terms or coverage.
What is the role of endorsements in personal property policies?
To add, remove, or alter coverage to fit the specific needs of the insured.
What is manuscript wording in endorsements?
Custom policy language created for a specific client or situation.
Why are endorsements important?
They provide flexibility and customization to standard insurance policies.
What are common types of endorsements?
Scheduled personal property, sewer backup, earthquake coverage, business use endorsements.
How do endorsements affect the base policy?
They override or add to the provisions of the base policy.
What is a floater in property insurance?
A separate policy or addition that covers specific high-value or mobile property.
How do floaters differ from standard personal property coverage?
Floaters provide broader, often all-risk, coverage for specifically listed items.
What types of property are typically insured with floaters?
Jewelry, fine art, collectibles, cameras, musical instruments, bicycles.
What is a personal articles floater?
A common floater policy that covers valuable personal property against many risks.
What is the purpose of a marine survey in relation to floaters?
To appraise and inspect items like boats or high-value collectibles for insurance.
How do floaters operate in terms of claims?
Claims are settled based on the itemized value listed in the floater schedule.
What is a schedule of insurance?
A list of specific items covered under a floater or endorsement, including their values.
Why are floaters useful for mobile or high-value items?
Because they ensure full coverage regardless of the item’s location.
How are floaters typically written?
On an all-risks basis unless specifically excluded.
Can floaters be added to standard homeowners policies?
Yes, either as part of the policy or as separate scheduled coverage.
