dwelling policy is primarily for what type of property
rental
2 areas missing in dwelling policy that are listed in a homeowners policy
-coverage for content
-coverage for liability
dwelling policy key features
-up to 4 residential units
-up to 5 roomers/boarders
-owner or tenant occupied
-not for farm property
-insure dwelling under construction
-mobile homes if permanently located
-incidental business, no more than 2 persons working
dwelling policy structure (DPISO)
-agreement
-definitions
-deductibles
-coverages and other coverages
-perils insured against
-general exclusions
-conditions
agreement
declaration page
DP 00 01 or DP-1
-named peril
-basic
DP 00 02 or DP-2
-named peril
-broad
DP 00 03 or DP-3
-open and named peril
-special
special dwelling form is
most common when policy is written
DP-1 basic form
paid on actual cash value basis
DP-1 basic form covers
-fire
-lightning
-internal explosion
DP-1 basic form option 1
extended coverage endorsements: require additional premium
DP-1 basic form option 1 covers
-windstorm/hail
-explosion
-smoke
-aircraft/vehicles
-riot/civil commotion
-volcanic eruption
DP-1 basic form option 2 covers
everything in option 1 plus vandalism and malicious mischief
WHARVES
extended coverage perils
-Windstorm
-Hail
-Aircraft/vehicle
-Riot/civil commotion
-Volcanic eruption
-Explosion
-Smoke
DP-2 broad form
basic form + extended perils +V&MM + broad form perils
broad form losses are on
replacement cost basis as long as insured maintains a minimum amount of coverage equal to 80% of dwelling replacement cost
extra perils covered on broad form
-burglary
-falling objects
-artificially generated electricity
-weight of ice, snow, or sleet
-accidental discharge or overflow
-tearing apart, cracking, burning or bulging
-freezing of plumbing
broad form additional coverages
-lawns, trees, shrubs and plants
-glass breakage
-collapse (broad and special)
lawns, trees, shrubs and plants details
-$500 each
-max 5% of dwelling
glass breakage details
-part of building
-no coverage if vacant over 60 days
collapse (broad and special) details
-broad form perils or specifically named perils
-excludes settling, cracking, shrinkage, bulging or expansion
BB BICE-GOLF stands for
-Bursting of heating systems
-Burglary
-Breaking of water heaters
-Ice, snow or sleet weight
-Collapse
-Electrical
-Glass Breakage
-Objects falling
-Leakage or water or steam damage
-Freezing of plumbing
DP-2 Broad Theft coverage details
-added by endorsement if the insured is the owner-occupant of the dwelling
-covers personal property of the insured
-no coverage if premises have been vacant for more than 60 days
DP-2 Broad Theft coverage common exclusion examples
-animals, birds or fish
-credit cards
-aircraft
-property while in the mail
-property held as a sample
-property specifically described or insured by other insurance
-property of tenants, roomers and boarders (other than relatives)
-business property
-pro
DP-3 Special Form
all perils insured against except those specifically excluded, the special and broad forms also include three other coverages such as
-breakage of glass
-collapse
-lawns, trees, shrubs and plants
DP coverage a
-dwelling
-all attached property
-100% of coverage
DP coverage B
-other structures
-unattached structures
-10% of coverage a limit
DP coverage c
-personal property
-do not have it unless endorsement declared in policy
-content
DP coverage D
-fair rental value
-20% of coverage
-rental property is destroyed, compensation for lost rent
-consequential loss or time element loss
DP coverage e
-additional living expenses not included in basic form
coverage extensions on DP- debris removal
reasonable costs to remove debris after a loss
coverage extensions on DP- tenants' improvements, alterations and additions
10% of personal property limit
coverage extensions on DP-worldwide personal property
up to 10% of personal property limit
coverage extensions on DP-rental value/additional living expenses
up to 20% of coverage A limit
coverage extensions on DP- reasonable cost of repairs
repairs necessary to protect property from further loss or damage
coverage extensions on DP- property removal
damage to property removed; basic - 5 days, broad/special - 30 days
coverage extensions on DP- fire department service charge
coverage up to $500; no deductible
all dwelling policy forms include the following conditions
-policy period
-insurable interest and limit of insurance
-concealment or fraud
-duties after a loss
-loss settlement
-pair or set
-appraisal
-other insurance
-subrogation
-suit against the insurer
-insurer's option to repair or replace
-loss payment
-aba
key features on homeowners policy
-insures residential risks
-includes coverage for personal property and personal liability
homeowners policy eligible properties
-up to a 4 owner- occupied residences
-no more than 2 roomers/boarders
-residential condominiums
-seasonal dwellings and secondary residences
-business occupancy
HO policies define an insured as
-named insured
-relatives of insured who reside
-nonrelative residents in care, or resident relatives under the age of 21
-full-time students under 24 who are relatives and prior residents
-any person legally responsible for the insured's animals, watercr
insured location
-residence premises
-part of other premises as a residence or newly acquired
-premise not owned but where insured is living temporarily
-vacant land owned or rented by insured
-land owned where dwelling is being constructed
-individual or family burial va
H0 00 04 or H0-4
-renters or tenants form
-tenant occupied
-named peril
H0 00 05 or H0-5
-comprehensive form
-owner occupied
-open peril
H0 00 06 or H0-6
-condominium form
-condominium unit owner occupied
-walls that make up your condominium
-named peril
H0 00 08 or H0-8
-modified form
-historic or older homes owner occupied
HO-4 covered perils
same perils as form HO-2
HO-3 special form covered perils
-building open peril
-contents- same perils as Form HO-2
HO-5 comprehensive form covered perils
-building and contents- open peril
HO-6 condominium unit owners covered perils
-same perils as Form HO-2
HO-8 modified coverage form covered perils
-fire lightning
-windstorm or hail
-explosion
-riot or civil commotion
-aircraft
-vehicles
-smoke
-vandalism
-theft
-volcanic eruption
HO-2 broad form covered perils
-fire lightning
-windstorm or hail
-explosion
-riot or civil commotion
-aircraft
-vehicles
-smoke
-vandalism
-theft
-falling objects
-weight or ice, snow, sleet
-accidental discharge or overflow of water
-sudden and accidental tearing
-freezing appliances
HO coverage A
-dwelling
-attached structures
-materials and supplies
HO coverage B
-basic amount of insurance equal to 10% of coverage A limit
-not applicable in HO-4 or HO-6
HO coverage C
-full coverage C limit worldwide
-property of others covered on the residence premises
-property at another premises covered for $1000 or 10% of coverage C
coverage D
-loss of use
-additional living expenses or fair rental value
HO property coverage- debris removal
-included in the policy limit.. covers reasonable expenses for removing debris after a loss
additional HO property coverage- lawns plants shrubs and trees
-5% of coverage A, but no more than $500 for any one tree, plant, shrub etc.
additional HO property coverage- removal
-30 days for property removed to protect from covered peril
additional HO property coverage- reasonable cost of repairs
-repairs necessary to protect property from further loss or damage
additional HO property coverage- fire damage service charge
-up to $500; no deductible
additional HO property coverage-credit card
-up to $500, stealing or unauthorized use
additional HO property coverage-glass or safety glazing
-any peril except earth movement, no prior vacancy more than 60 days
additional HO property coverage- collapse
-coverage A and B; limits/conditions exclusions apply
additional HO property coverage-loss assessment
-up to $1000
additional HO property coverage- landlord furnishings
-up to $2500; must be on residence
additional HO property coverage-building additions and alterations
-10% of coverage C; HO-4 only
-rental company would reimburse you for loss ceiling fan
additional HO property coverage-ordinance or law
-up to 10% of coverage A; limits and conditions apply
additional HO property coverage- grave markers
-up to $5000 for grave markers on or off premises
insured duties after a loss
-provide prompt notice of loss
-notify police if loss is caused by theft
-notify credit card company if the loss is covered under credit card coverage
-protect the property from further damage
-cooperate the insurer in the investigation of a claim
-allow
actual cash value (ACV)
-reinforces the principle of indemnity
-recognizes depreciation
current replacement cost-depreciation
Ex.
-personal property
-structures that are not buildings
replacement cost
-replace damaged property with like kind and quality at todays price, without deducting depreciation
-actual buildings, replace structure
-covering home to 80% of replacement cost
HO liability coverages
-no liability on dwelling
-liability included on HO
HO coverage E
-personal liability
-covers bodily injury (BI) and property damage (PD)
-pays up to policy limits
-cost of defense not reduce limit, policy plays cost of defending in court of law
HO coverage F
-medical payments to others
-basic limit of $1000 (can be increased)
-coverage regardless of fault
-file within 3 years of accident
-off premises: actions of insured or resident employees; animals
claims expenses
-expenses in any suit against insured
-up to $250 per day for loss of income by insured
-requires premiums on bonds
first aid to others
-expenses incurred by insured to render first aid for bodily injury to third parties (NOT the insured)
damage to the property of others
up to $1000 per occurrence
loss assessment coverage
up to 1,000 per occurrence for the insured's share of loss assessment charged against the insured as owner/tenant of residence premises
commercial package policy
-property and liability coverage
coverage parts of CPP policy
-general liability
-farm
-crime
-inland marine
-commercial auto
-commercial property
-equipment breakdown
modular parts of CPP
-policy components
-coverage part components
policy components
apply to all
-policy cover
-common declarations
-inteline endorsements
-common policy conditions
coverage part components
apply to each coverage part
-declarations
-coverage form
-conditions
-endorsements
interline endorsements
-apply to more than one coverage part
-eliminate redundancy and minimize the number of endorsements in the policy
builders risk policy
-insures buildings under construction
-coverage similar to the building and personal property coverage form
-written on a completed value form or a reporting form basis
property covered under builders risk
-building or structure
-foundations, fixtures
-machinery, equipment, materials, supplies within 100 feet
property not covered on builders risk policy
-land or water
-outdoor lawns, trees
-radio and television antennas
-signs
builders risk additional coverage- debris removal
-if reported within 180 days
-pays 25% of direct physical loss plus deductible
-pay an additional sum if limit is exceeded
-not considered an additional amount of insurance
builders risk additional coverage- preservation of property
-property removed to a temporary location to protect it from loss or damage
-loss or damage occurs within 30 days after property is moved
-not considered additional amount of insurance
builders risk additional coverage- fire department service charge
-up to 1000 of coverage
-considered an additional amount of insurance
builders risk additional coverage- pollutant cleanup and removal
-up to 10,000 of coverage
-considered an additional amount of insurance
BPP -building coverage
-materials/supplies within 100 feet
-outdoor signs up to $2500
BPP- business personal property coverage
-in building or within 100 feet
BPP- personal property of others
-at the premises or within 100 feet and in insureds care custody or control
BPP coverage extensions
-must have at least 80% coinsurance
-newly acquired of constructed
-personal effects and property of others
-valuable papers and records
-property off premises
-outdoor property
-nonowned detached trailers
BPP coverage extensions- newly acquired or constructed
-30 days
-up to $250,000
-personal property-up to $100,000
BPP coverage extensions- personal effects and property of others
-up to $2500 for insured, employees and others in care
-no theft
BPP coverage extensions-valuable papers and records
-$2500 to research and replace
BPP coverage extensions- property off premises
-$10000 for poerty insured doesn't own lease or operate, does not apply to vehicles or with salesperson
BPP coverage extensions- outdoor property
-$1000 for fences and antennas
-$250 for trees shrubs and plants damaged by named perils
BPP coverage extensions- nonowned detached trailers
-$5000 only if in care, custody or control and contractually obligated
optional BPP coverages
increases premiums
-agreed value (Ex. painting)
-inflation guard (automatic annual increase)
-replacement cost instead of ACV
causes of loss forms- basic commercial common basic perils +
-sprinkler leakage
-sinkhole collapse
causes of loss forms- broad commercial common broad perils +
-sprinkler leakage
-sinkhole collapse
-water damage
causes of loss forms- special commercial perils
all risk except those specifically excluded
commercial property floaters
worldwide coverage, stand-alone (monoline) or as part of a package (CPP)
typical filed form for commercial property floater
-commonly written risks
-all-risk coverage
-$250 deductible
accounts receivable coverage forms
accounts due that become uncollectible due to loss of records
bailee's customer coverage form
loss to customers property in care, custody or control
-dry cleaner
commercial articles coverage forms
owners of commercial cameras musical instruments and property, including similar property of others in the insured's care custody or control
contractors equipment coverage forms
mobile equipment and contractors equipment owned, rented or borrowed
-hollywood motion pictures
electronic data processing coverage forms
computers, processing media, extra expense and business interruption
equipment dealers coverage form
stock of mobile equipment and construction equipment dealers
installation floater coverage form
appliances intended to become part of a building
-air conditioner
jewelers block coverage form
merchandise for sale and of other in care, custody or control
signs coverage forms
insured's signs and others in care, custody or control
valuable papers and records coverage forms
replace or reconstruct lost of records
-deed of trust
equipment breakdown
property insured on a replacement cost basis
most business and industrial risks
-must be in use or connected and ready
property owned by insured
-property in care custody or control
-up to $25000 for expediting expenses for temporary or permanent repairs
farm coverage forms
-basic, broad, special
-coverage A-D (similar to HO)
-coverages E, F, G (farm specific)
farm liability
-similar to commercial general liability
-coverage H-J
farm coverage- coverage H
bodily injury and property damage arising from farming operations and personal acts of the insured
farm coverage- coverage I
personal and advertising injury liability for insured's farm-related products and services
farm coverage- coverage J
medical expenses regardless of fault reported within 3 years
livestock coverage
-named peril coverage
mobile agricultural machinery and equipment
-open peril coverage
-may be written as stand-alone coverage
cause of loss: farm basic
common basic + sprinkler leakage, sinkhole collapse, collision
cause of loss: farm broad
common broad perils + 9 additional perils
business owners policy (BOP)
-prepackaged policy (property and liability coverage)
-for small to medium size business
-single premium for property and liability
BOP-types of businesses
-office buildings
-apartments buildings
-mercantile and service etablishments (retail)
-some contractors
-fast-food restaurants
-convenience stores
BOP- wont cover what businesses
-automobile sales and servicing
-manufacturing operations
-places of amusement
-bars and grills
-financial institutions
BOP section 1
-property
-direct physical loss to covered property
-subject to limitations and exclusions
-business personal property
BOP coverage extensions- newly acquired or constructed property
-up to $250,000 for a building being built on premises
-up to $100,000 for newly acquired business personal property
-coverage applies for 30 days after insured acquires property or end of policy period
BOP coverage extensions- personal property off premise
-up to $10,000 personal property during transit or temporarily at the premise that the insured does not own, use lease or operate
-not for money and securities
BOP coverage extensions-outdoor property
-outdoor radios, television antennas, detached signs, trees and shrubs
-damage must result from fire lightning, explosion riot or civil commotion
-up to $2500 but no more than $100 per plant
BOP coverage extensions- personal effects
-up to $2500 for each described premises
-for personal effects owned by insured, partners etc
BOP coverage extensions- valuable papers and records
-up to $10,000 for cost of research, replacement, restoration
-up to $5000 for valuable papers not at the described location
-valued at the cost of restoration or replacement
BOP coverage extensions- accounts receivable
-applied to amounts due from insureds customers
BOP- vacancy
-unoccupied for more than 60 consecutive days
-65% + rental units or floor area unoccupied
NOT covered
-vandalism
-sprinkler leakage
-building glass breakage
-water damage
-theft
covered perils
-covered for 15% less than normal coverage
BOP optional coverages- outdoor signs
-open peril basis
-exclusions: wear and tear, hidden/latent defects, rust, corrosion, mechanical breakdown
-up to $1000 per sign attached to the building
BOP optional coverages- employee dishonesty
-loss to business personal property or money and securities
-includes anyone currently employed or terminated within the past 30 days
-acts committed by insured or partners are excluded
BOP optional coverages- money and securities
-loss resulting from theft, disappearance, destruction
-verification dependent on records
-must have been at premise
BOP optional equipment breakdown protection
-covers direct loss or damage from mechanical breakdown, electrical failure to pressure, mechanical or electric machinery/equipment
BOP section 2
-liability
coverage for:
-bodily injury
-property damage
-personal injury
-advertising injury
features:
-written with occurrence coverage trigger
-limits of liability
-supplement payment paid in addition to limit of insurance
-duty to defend ends when lim
BOP selected endorsements
hired and nonowned auto (employees cars)
protective safeguards
-allows 48 hours to restore
utility services
-direct damage from covered peril
utility service time element
-loss of business income or extra expense
BOP vs. CPP- coinsurance
not applicable on BOP
BOP vs. CPP- collapse coverage
CPP
-broad and special forms
BOP
-open perils form only
BOP vs. CPP- inflation guard
CPP
-optional
BOP
-included
BOP vs. CPP- seasonal increase
CPP
-optional
BOP
-not applicable
BOP vs. CPP- crime coverages
CPP
-optional
BOP
-burglary and robbery included in open peril
-employee dishonesty and money and security are optional
flood
general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties, two walls
eligible causes of flood
-overflow of inland or tidal waters
-unusual and rapid accumulation or runoff of surface waters
-mudflow and mudslides
-abnormal erosion of shorelines caused by flooding
exclusions from the definition of flood
-landslides
-sewer backup unrelated to flood
-windblown rain
-snow or sleet
-flooding within insured's control
national flood insurance program
administered by FIMA under FEMA
3 components
-insurance
-floodplain management
-floodplain mapping
write your own vs direct
eligibility:
-must live in community that meets minimum guidelines
-30 days prior
-two walls and a roof
above ground
-not be entire
flood policy waiting period
-30 days before coverage is in effect
-no binders can be issued during waiting period
-waiting period may be waived if community enters the program or existing policy is assigned to a property purchaser, endorsement request for an existing policy premium
personal watercraft coverage- included in HO policy
-inboard-powered boats up to 50 horsepower
-outboard-powered boats up to 25 horsepower
-sailing vessels up to 26 feet in length
-up to $1500 of coverage
boat owners policy
section 1- physical damage
section 2- liability coverage