Unit 4 Part A Flashcards
(29 cards)
two types of property
- real – buildings
- personal – moveable contents
property coverage can be (1), or (2)
- specific/scheduled – detailed list of covered items
- blanket – everything, no detailed list
blanket coverage is a ______ ____ of coverage, meaning…
single limit
it applies to all items of a certain property
policy limit, limit of coverage/liability/insurance
max amnt company will pay on dec page
open peril policy
insures against all risk of direct physical loss, except anything specifically excluded
open peril policies are often called… (3)
- all risk
- special coverage
- comprehensive coverage
named/specified peril coverage
covers the list of perils in insuring agreement (less expensive)
the three levels of coverage are organized as…
- basic – least expensive
- broad – middle ground
- special – most expensive
basic cause of loss form
covers 3 basic perils: fire (hostile, not arson), lightning, internal explosion (covered location)
10 additional perils, known as Extended Coverage perils
WCSHAVVER + VMM
Wind
Civil commotion
Smoke
Hail
Aircraft
Vehicles
Volcanic eruption
Explosion
Riot
Vandalism, mischief
wind in extended coverage
exterior damage; interior damage is only covered if there is damage to exterior first
civil commotion in extended coverage
caused by an assembly of individuals including striking employees
smoke in extended coverage
not from a friendly fire, aka fireplace
explosion in extended coverage
caused by explosion away from covered location
riot in extended coverage
caused by a group including striking employees, usually smaller in # than civil commotion
vandalism and malicious mischief
damage caused by willful, malicious actions usually involving a crime
broad peril coverage
named peril coverage including the 3 basic forms, the 9 extended coverages, and 9 additional coverages
the 9 additional coverages of Broad Peril coverage (not extended)
BIG AFFECT
Burglary damage
Ice, sleet, snow
Glass breakage
Accidental discharge of water (plumbing, AC, sprinklers)
Freezing objects (^^)
Falling objects
Electrical current
Collapse
Tearing asunder (sudden tearing apart/breaking of heating, sprinklers, water heaters)
4 Broad Peril cov exclusions
- weight of ice/snow/falling objects/etc on awnings, fencing, patios, retaining walls, etc.
- accidental discharge caused by continuous leaking of system
- flooding from a natural water source (river/lake)
- burglary if property vacant 60 consecutive days
Broad Peril cov expands coverage for vehicles and smoke, what does it do?
vehicles – damage to fences/driveways/etc. when vehicle is driven by a non-resident, and damage to other property when vehicle IS driven by a resident
smoke – includes losses to fireplace smoke
Special Peril coverage
insures against all risks of direct physical loss unless they are specifically excluded
6 common exclusions of Special Peril Coverage
- flooding
- earthquakes
- intentional damage caused by NI
- losses due to enforcement of building codes
- damage caused by a power interruption off premises
- govt seizure
direct vs indirect loss
direct – immediately caused by the peril
indirect – consequential loss due to direct loss
Class 1 Construction
Frame
outside support walls, roof, floors made of wood/combustible material. ext walls may be covered w/ stucco or brick veneer
