Chap 15A Property Insurance

Front 1

liability insurance/ casualty

Back 1

insures person or comp for damaging someone else's company or hurting someone else

Front 2

dwelling policies

Back 2

cover a direct loss to physical property as well as an indirect loss that results because the insured cannot use the property after it is damaged.

-no theft coverage

-no liability coverage

Direct loss- happens suddenly due to covered peril (fire, lightning, hail, etc)

Indirect loss- consequential loss due to direct loss (rental income)

Front 3

HO-1 Basic form

Back 3

names peril form (10) on both dwelling structures and contents. (theft incuded)

Front 4

HO-2 Broad form

Back 4

includes all HO-1 perils plus 6 more perils

Front 5

HO-3 Special Form

Back 5

most people get this.

All risk coverge on dwelling and other structrues, contents are named peril.

Front 6

HO-4 Renters or Tenants Form

Back 6

coverage for insureds who do not own the premises they inhabit; contains no structures coverage

Front 7

HO-5 Comprehensive Form

Back 7

All risk coverage on both structures and contents

Front 8

HO-6 Condo Unit Owners

Back 8

Small amount of coverage for interior space owned by the insured, but not the condo building structure or common areas

Front 9

HO-8 Modified Form

Back 9

Named peril on structures and personal property for older homes which replacement cost of dwelling exceeds market value.

Front 10

Deductibles

Back 10

Dollar amount insured must pay on each loss.

Dwelling and HO liability policies are written without deductibles. Only contents have deductibles.

Front 11

how much insurance is needed?

Back 11

standard policies require enough insurance to cover at least 80 percent of cost to replace structure.

Front 12

ACV (actual cash value)

(one way to settle claims)

Back 12

Replacement cost (RC)- Depreciation- Deductible= AVC

Front 13

replacement cost basis

(better second way to settle claims)

Back 13

RC - deductible= Recplacement cost

-up to policy limits

-insured must be covered at leasst 80% of replacement cost value otherwise a penalty may occur.

Front 14

NYPIUA created in 1968

Back 14

-developed FAIR (fair access to insurance requirements) to ensure affordable prop insurance

-does NOT cover liability, flood, theft

Front 15

flood insurance

Back 15

only offered thru federal programs FEMA which manages the NFIP (national flood insurance program)