NEW YORK REAL ESTATE UNIT 25 PROPERTY INSURANCE

CONTENTS & PERSONAL PROPERTY INSURANCE

Coverage of personal property and other building contents when they are not on the insured premises.

DYNAMIC RISK

is defined as the uninsurable risk associated with changes in the economy, income taxes, and supply versus demand issues.

STATIC RISK

s defined as insurable risk associated with events such as accident liability, fire, theft, and vandalism.

FIRE & HAZARD INSURANCE

Policy providing coverage for direct loss of or damage to property resulting from fire, storms, hail, smoke, or riot.

LIABILITY INSURANCE

Standard package homeowner's insurance policy coverage for personal injuries to others resulting from the insured's acts or negligence; voluntary medical payments and funeral expenses for accidents sustained by guests or resident employees on the property

WORKERS COMPENSATION ACT

State insurance program, paid for by employers, to compensate those hurt on the job.

BUSINESS INTERRUPTION INSURANCE

Insurance covering against potential losses that result from having to close a business for insurable reasons; insurance pays net profits and expenses while a business is shut down for repairs or rebuilding

CASUALTY INSURANCE

Insurance policy coverage against theft, burglary, vandalism, physical damage to systems, and health and accident coverage on a specific-risk basis.

SURETY BOND

Bond covering an owner against financial losses resulting from the criminal acts or negligence of an employee in the course of performing his or her job.

BOILER & MACHINERY INSURANCE

Insurance policy covering repair and replacement of major equipment and systems such as central air-conditioners and heating plants.

UMBRELLA POLICY

An insurance policy that covers additional risk beyond several underlying policies. two basic forms: personal and commercial. Personal umbrella policies are designed to provide coverage for those areas and items that would fall between the cracks with oth

MULTI PERIL INSURANCE

Insurance policies offering protection from a range of potential perils, such as fire, hazard, public liability, and casualty, in a single policy.

MONOLINE POLICY

A monoline policy provides only one line or area of coverage. It bears greater relevancy to insurers than to the insured.

PACKAGE POLICY

A package policy is one policy that provides for a variety of different coverage types.

CERTIFICATE OF INSURANCE

Whenever real estate transactions include financing (aquisition financing or refinancing of a loan), lenders require advance proof of coverage. This is usually accomplished by submitting an insurance certificate or a certificate of insurance.

ACTUAL CASH VALUE

When a claim is made under a policy insuring a building or other physical object, either of two methods can determine the amount of the claim. One is the depreciated, or actual cash value of the damaged property. The other is replacement cost.

REPLACEMENT COST

The construction cost at current prices of a property that is not necessarily an exact duplicate of the subject property but serves the same purpose or function as the original.

CO INSURANCE CLAUSE

A clause in insurance policies covering real property that requires that the policyholder maintain fire insurance coverage generally equal to at least 80 percent of the property's actual replacement cost

DEDUCTIBLE

As it relates to insurance policies, represents the monetary portion of the damages the property owner will bear if and when a covered loss occurs.

HOMEOWNERS INSURANCE POLICY

A standardized package insurance policy that covers a residential real estate owner against financial loss from fire, theft, public liability, and other commercial risks.

HO-1

provides property coverage against fire or lightning; glass breakage; windstorm or hail; explosion; riot or civil commotion; damage by aircraft; damage from vehicles; damage from smoke; vandalism and malicious mischief; theft; and loss of property removed

HO-2

hat also covers falling objects; weight of ice, snow, or sleet; collapse of the building or any part of it; bursting, cracking, burning, or bulging of a steam or hot water heating system or of appliances used to heat water; accidental discharge, leakage,

HO-3 HO-8

Further coverage is provided by comprehensive forms, HO-3, the most popular form, and HO-5. These policies cover all possible perils except flood, earthquake, war, and nuclear attack.
Other policies include HO-4, a form designed specifically for apartment

HOME INSURANCE FORMULA

For example, let's assume the following information:
A fire occurs and the improvement is destroyed.
Policy replacement cost limits are $400 per square foot.
A change in building codes no longer allows the use of the same building materials used in the pr

NYS DISCLOSURE REQUIREMENT

Chapter 44 of the Laws of 1998 enacted a new Section 3445 of the Insurance Law. This law required the Superintendent of Insurance to establish by regulation disclosure requirements concerning the existence of any deductible in a homeowners' insurance poli