Cfp - Insurance - Unit 7

Front 1

Broad coverage

Back 1

12basic plus the following 6 perils:

1. Falling objects

2. The weight of ice, snow, or sleet

3. Accidental discharge or overflow of water or steam

4. Sudden and accidental tearing apart, cracking, burning,or bulging of a steam, hot water, air conditioning, or automatic fire sprinklersystem, or of a household appliance5. Freezing of a plumbing, heating, air conditioning, orautomatic fire sprinkler system, or of a household appliance

6. Sudden and accidental damage from an artificiallygenerated electrical current

Front 2

Section I Coverages – Property & belongings

Back 2

Coverage A: Dwelling

Coverage B: Other Structures

Coverage C: Personal Property

Coverage D: Loss of Use

Optional Section I Coverages

Front 3

Section IICoverages – Liability

Back 3

Coverage E: Personal Liability

Coverage F: Medical Payments to Others

Optional Personal Liability Endorsements

Front 4

Coverage B:

Back 4

Other Structures - providesinsurance protection for small, detached structureson the dwelling property, such as a storage shed

· The limit on insurance is typically 10% of the coverage A (dwelling) limit

· reimburses the insured on a replacement cost basis

Front 5

Coverage A:

Back 5

1. Dwelling - providescoverage for repair or replacement of damage to the dwelling and any structuresattached to it, such as a garage or deck

· Land is excluded from coverage

· homeowner typically buys an amount of coverage equalto the replacement cost of the dwelling

· may be required to carry more by the mortgage lenderto pay off the mortgage in the case of a total losspolicy will only cover up to the policy limit

Front 6

Coverage C:

Back 6

1. Personal Property – covers personalbelongings possessed by the policy owner as well as the personal property of anyresident family members

· The limit on this coverage is typically 50% of thecoverage A limit

· provides only actual cash value (ACV) coverage on personalproperty

· Actual cash value - is the depreciated value of personal property peran internal insurance company table and is not the value of the property afterdepreciation for income tax purposes

· personal property have maximum dollar limits on theamount insured

· Excluded from coverage C:

o animals, birds, and fish

o motorized land vehicles used off the premises (ifinsurable under auto policies)

o property of roomers or boarders not related to theinsured

o articles specifically described and specificallyinsured (e.g., a boat or Aircraft)

o credit cards

o Items insured under another policy

o Equipment powered by motor vehicles

Front 7

Coverage D:

Back 7

Loss of Use - coverageprovides reimbursement to an insured homeowner for additional living expensesincurred living elsewhere while the home is being repaired

typically limited to 20% of the Coverage A limitin the standard homeowners policy

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Optional Section I Coverages

Back 8

available through optional endorsements forsinkhole collapse and earthquake

· optional endorsement can also be used to coverpersonal property on a replacement cost basis

· not eligible for replacement cost coverage:

o Antiques, fine art, and similar property

o Memorabilia, souvenirs, and collector’s items

o Property not kept in good working condition

o Obsolete articles that are stored or not being used

Front 9

Coverage E:

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Personal Liability - protectsthe insured homeowner and all resident family members against personal liabilityfor bodily injury and property damage that may occur on or off of the premises due to negligence

· Coverage E only applies if theinsured is found to be legally liable

· The standard homeowner's policy generally has a $100,000 limit for liability coverage

· insured may consider increasing this if limit topurchase a personal umbrella liability policy with the same insurance companyis a greater amount

· the insured gives up the right to settle any lawsuitarising out of an injury or property damage occurring on or off of the premises(i.e., that right is subrogated to the insurance company

· the company agrees to pay all defense and settlementcosts associated with a third-party claimdoesnot cover liability from operation of home-based businessP

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Coverage F:

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1. Medical Payments to Others - coveragepays necessary medical expenses of others that result from bodily injuryarising out of the insured's or the insured's animals' activities on or off ofthe premises

· Generally, the coverage will pay up to $1,000 perperson per occurrence

· pay for bodily injuriesregardless of fault

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Optional Personal Liability Endorsements

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endorsements may cover:

· liability forfalse imprisonment

· malicious prosecution

· libel

· slander

· defamation

· wrongful entry

· eviction

· other invasion of the right of private occupancy