ISO dwelling policy
-dwellings that are ineligible for coverage under the HO policy
-The forms are narrower in coverage
-The base forms do not include coverage for theft or personal liability without appropriate endorsements
Dwelling Property 1 (Basic Form)
provides coverages similar to the Homeowners Policy
Dwelling Property 2 (Broad Form)
-covers losses to the dwelling and other structures on a replacement cost basis
-The list of named perils is expanded
Dwelling Property 3 (Special Form)
covers the dwelling and other structures on an "open perils" basis
Endorsements to the dwelling form include:
-Theft coverage
-Personal liability supplement
mobile home insurance
-written by adding an endorsement to an HO-2 or HO-3 policy
-must be at least 10 feet wide and 40 feet long, and capable of being towed on its own chassis
inland marine floater
provides broad coverage on property frequently moved from one location to another and on property used in transportation and communications
personal articles floater (P A F)
-inland marine floater that provides comprehensive protection on valuable personal propertY
-insures certain classes of personal property on an "open perils" basis
-can also be added as a scheduled personal property endorsement to an HO policy
boatowners package policy
combines physical damage insurance on the boat, medical expense insurance, liability insurance, and other coverages into one policy
National Flood Insurance Program
provides insurance coverage to property owners in flood-prone areas
write-your-own program
private insurers sell federal flood insurance under their own names, collect the premiums, and receive an expense allowance
Dwelling Form
insure one- to four-family residential buildings and single family dwelling units in a condominium building
General Property Policy Form
insure five or more family residential buildings and nonresidential buildings
Residential Condominium Building Association Policy Form
issued to residential condominium associations on behalf of association and unit owners
The federal flood insurance program faces several critical problems, for example:
-The NFIP has a substantial deficit, largely due to Hurricane Katrina in 2005
-Many property owners do not pay premiums that adequately reflect the risk of flooding
-N F I P is required to insure multiple loss properties
-Operational and management issues
Biggert-Waters Act
-Extends NFIP
-Rate subsidies on certain properties are phased out over four years
-Annual premium rate increases of up to 20 percent are allowed
-A reserve fund is created to help fund claims in years when catastrophic losses occur
FAIR plans
-Plans provide coverage to urban property owners who are unable to obtain coverage in the standard market
-Plans cover property for fire and extended-coverage perils, vandalism, and malicious mischief
-A building insured under a FAIR plan must meet certai
Title insurance
-protects the owner of property or the lender of money for the purchase of property against any unknown defects in the title to the property under consideration
-provides protection against title defects that have occurred in the past, prior to the effect
personal umbrella policy
provides protection against a catastrophic lawsuit or judgment
self-insured retention
-must be satisfied for losses covered by the umbrella policy but not by any underlying contract
-The policy pays for damages in excess of the retained limit for bodily injury, property damage, or personal injury for which the insured is legally liable
-Ex
commercial package policy (CPP)
-Advantages include: fewer gaps in coverage, lower premiums, and convenience
-The CPP is tailored to cover most property and liability loss exposures
package policy
combines two or more coverages into a single policy
multiple-line policy
combines coverages for property and liability into a single policy
monoline
policy contains only one type of coverage
building and personal property (BPP) coverage form
-widely used to cover a direct physical damage loss to commercial buildings and personal property
-Coverage includes the insured's interest in improvements and betterments as a tenant
-The policy can be endorsed
causes-of-loss form
-must be added to the policy to have a complete contract
-The form specifies the covered perils for the business and personal property coverage
causes-of-loss broad form includes all causes of loss covered by the basic form plus:
-Falling objects
-Weight of snow, ice, or sleet
-Water damage
-Also, collapse is covered for certain causes, such as hidden decay or insect damage
causes-of-loss special form
insures against "risks of direct physical loss" unless specifically excluded
reporting form
requires the insured to report periodically the value of insured business personal property
value reporting form
used to insure fluctuations in business personal property
Premiums are based on the actual value of the covered property
peak season endorsement
increases the amount of insurance in force during a specified period to reflect higher inventory values
Business income insurance
designed to cover the loss of business income, expenses that continue during the shutdown period, and extra expenses because of loss from a covered peril
business income (and extra expense) form
covers the loss of business income due to suspension of operations
extra expense coverage form
separate form that can be used to cover the extra expenses incurred by the firm in continuing operations during a period of restoration
dependent properties
-Used when a business depends on a single supplier for raw materials,
-or relies on a single customer to purchase its products
builders risk coverage form
used to insure buildings under construction
condominium association coverage form
-covers commercial and residential condominiums
-Coverage includes the association's personal property, such as exercise room equipment
-Coverage also includes personal property in the association's care, such as leased lawn mowers
Equipment breakdown insurance
covers losses due to the accidental breakdown of covered equipment
Ocean marine insurance
provides protection for goods transported over water
Hull insurance
covers physical damage to the ship or vessel
collision liability clause (running down clause)
covers the owner's legal liability if the ship collides with another vessel or damages its cargo
Cargo insurance
covers the shipper of the goods if the goods are damaged or lost
Ocean marine insurance is based on certain fundamental concepts, or implied warranties:
-The owner implicitly warrants that the vessel is seaworthy
-The ship can only deviate from its original course to avoid an accident, to save the life of an individual on board, or rescue persons from another vessel
-purpose of voyage is legal
Inland marine insurance
provides protection for goods shipped on land
businessowners policy (BOP)
-package policy specifically designed for small- to medium-sized retail stores, office buildings, apartment buildings, and similar firms
-The ISO BOP provides both property and liability coverage in one policy