Study 8 Flashcards
(19 cards)
What is a secondary home?
A property used occasionally by the insured in addition to their primary residence.
What loss exposures are common for secondary homes?
Vacancy, theft, water damage, and delayed maintenance.
What coverage considerations apply to high-valued homes?
They often require higher limits, appraisals, and customized policies.
What distinguishes mobile homes in insurance?
They require specialized policies due to their construction and mobility.
What risks are associated with rented dwellings?
Tenant negligence, vandalism, and loss of rental income.
What is accommodation sharing?
Short-term rentals of part or all of a dwelling, typically through online platforms.
What are coverage challenges with accommodation sharing?
Increased liability exposure and potential policy exclusions.
What is a seasonal dwelling?
A home used only during specific seasons, such as a cottage or cabin.
Why are seasonal dwellings riskier to insure?
They are often vacant for long periods and may lack year-round maintenance.
What is a hobby farm?
A rural property with small-scale farming activities not intended as a business.
How do insurers treat hobby farms?
They may offer limited farm coverage or require separate farm insurance policies.
What is a condominium?
A form of property ownership where individuals own their units and share common property.
What is the role of the condominium corporation?
It manages the common property and purchases insurance for it.
What is the standard unit bylaw?
A bylaw defining what is included in a standard unit for insurance purposes.
What does condominium corporation insurance cover?
Common areas, standard unit features, and liability for the corporation.
What is the purpose of a condominium unit owner’s form?
To insure the owner’s personal property, betterments, and personal liability.
What loss exposures are associated with tenants?
Fire, water damage, theft, and liability for damage to the rental unit.
What underwriting concerns apply to tenants?
Frequent moves, shared accommodations, and responsibility for contents.
What are common tenant forms?
Comprehensive tenants package policies including contents, liability, and additional living expenses.
