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18 Cards in this Set
- Front
- Back
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What is a package policy? |
A package policy includes within one policy document all the covers required by a particular type of policyholder. |
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What are the two options generally available for settlement of household claims where the item concerned is irreparable? |
- Indemnity (or market value) * A deduction is made for wear and tear. Nowadays this option is rarely chosen. Some insurers do not even offer it as an option. - New for old (or reinstatement). * The full cost of replacing the item as new is paid. Most insurers make a deduction for wear and tear in certain circumstances: such as claims made for clothing and household linen. |
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What does building insurance include? |
-Here, buildings may be defined as the main structure of the private dwelling and includes garages, sheds, greenhouses and other outbuildings. - Swimming pools and tennis courts are also included as are walls, gates, fences and paths. - Anything that would normally be left behind when moving from a house is generally considered part of the building. This would include, for example, fitted kitchens or bedrooms, electrical fittings and double glazing. |
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What perils are generally available in respect of buildings? (15) |
- Fire, lightning, explosion and earthquake. - Riot, civil commotion, strikes, labour or political disturbances, malicious damage or vandalism - Storm or flood - Falling trees or branches - Escape of water - Escape of oil - Theft or attempted theft - Impact, e.g. from a road vehicle. - Subsidence, ground heave or landslip - Breakage or collapse of television or radio receiving aerials, aerial fittings and masts. - Accidental damage to drains, pipes, cables, or underground pipes - Accidental breakage of glass and sanitary fixtures - Legal fees, architects' and surveyors' fees, cost of debris removal - Loss of rent - Accidental damage is also available as a non- automatic extension. Many of these are excluded whilst the premises are left unfurnished or unoccupied for more than 30 or 60 days in any one insurance period. Many of these are subject to an excess. |
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Define contents in the context of contents insurance. |
Contents may be defined as household goods and personal effects belonging to the insured or a family member living in the property. This includes cash and stamps (not part of a stamp collection) up to, say, £500 in total and any fixtures and fittings belonging to the insured are also covered. |
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How do perils covered under the contents section differ from those under the buildings section? (4) |
They are basically the same, but there are a few minor differences which should be noted: - Theft or attempted theft of cash, currency, bank notes and stamps is generally excludes if it does not involve forcible and violent entry or exit. - Theft or attempted theft by deception is usually excluded, unless the only deception used is to get into the home. - Theft or attempted theft while the building is lent, let, or sub-let in whole or in part, or if the building is unfurnished, is normally excluded if it does not involve forcible and violent entry or exit. - Accidental damage cover, which may be added to the 'standard cover' is subject to the same excess and exclusions as the buildings section. However, certain contents are excluded depending on the insurer. |
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What other elements are usually included automatically within the contents section and are not subject to any additional premium? (4) |
- Temporary removal * Covers the contents whilst temporarily removed but remaining in GB, NI or Eire. * The risk of storm and flood as regards property that is no longer in a building is excluded. * Theft or attempted theft is only covered: at any bank, safe deposit or whilst being taken there; in any building where the insured or a family member is temporarily residing or working. - Clothing and personal effects (other than cash) of the insured's domestic servants. - Accidental breakage of mirrors and glass on or fixed to furniture. - Loss of rent. Cover includes loss of rent and reasonable additional expenses incurred for alternative accommodation in the event of the premises becoming uninhabitable. |
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What are typical specific exclusions in the contents section? (5) |
- Property more specifically insured under another policy. - Deeds, bonds, bills of exchange, promissory notes, cheques, securities, documents and manuscripts. - Medals and coins, unless specifically insured - Motor vehicles - Livestock (other than horses) |
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What specific liability cover is included in buildings insurance? |
- This section includes liability incurred by the insured as owner of the property and liability incurred under the Defective Premises Act 1972 for faults in property formerly owned and occupied by the insured. |
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What specific liability cover is included in contents insurance? (3) |
This section protects the interest of the insured as: - Occupier, rather than owner, of the property, i.e. it covers liability incurred as occupier of the property or any other premises used for temporary holiday accommodation. - A private individual for personal liability, in other words, the liability does not need to be linked to the occupation of property - As an employer of domestic employees |
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What is 'all risks' cover? (4) |
- All risks cover is available for personal possessions regularly taken outside of the property. - Such cover is particularly suitable for personal jewellery, watches, cameras, laptops etc. - usually such cover is only available in conjunction with contents cover. - Insurers will insist upon a separate sum insured for specified items above a certain sum but will be happy to cover unspecified items subject to a limit for any one item. |
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What optional extensions are available on Contents insurance? |
- All risks - Money and credit cards - Bicycles - Freezer contents - Caravans - Small craft - Sports equipment - Personal Accident, hospital cash benefit and creditor insurance - Domestic animals - Legal expenses - Identity fraud |
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What are the standard sections of a travel insurance policy? (9) |
- Personal Accident benefits * A benefit of between £10,000 and £25,000 is usually provided for death, loss of eyes or limbs, or permanent total disablement following an accident. * Some insurers include weekly benefits for temporary total or partial disablement. * Some hazardous activities are excluded but can be specifically insured by payment of an additional premium. - Medical and associated expenses * Medical treatment (surgical fees, hospital charges, emergency dental treatment) * Additional hotel/ travelling expenses of the patient or a friend, member of the family or nurse travelling with the family * Additional cost of bringing home the patient, including the use of an air ambulance * Additional expenses of those in the insured's party who are delayed as a result of the injury or illness * A sum of £10m is not uncommon, and is often more for travel in the USA. - Loss of deposit deposit Loss of deposit section provides reimbursement of deposits and payments made for transport and accommodation booked and not used by the insured due to the necessary and unavoidable cancellation of the holiday or journey as a result of causes beyond their control. - Baggage, personal effects and money * Some insurers exclude losses of unattended baggage. - Personal liability * The personal liability section covers an insured's legal liability for injury to third parties or accidental loss of or damage to third party property. The limit of indemnity is between £500,000 and £1m. - Delayed baggage * Cover is for the cost of buying essential items of clothing and toiletries required following the delay of baggage. - Hospital cash benefits * Provides a daily benefit while the insured is confined to hospital. - Travel interruption * The travel interruption section covers the failure of public transport to deliver the insured to the departure point on either the outward or return journey in time to take the trip booked. - Travel delay * Delay of travel for at least 12 hours of original departure time due to strike, industrial action, adverse weather conditions, mechanical breakdown or structural defect affecting the aircraft etc is covered. |
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What optional extensions are available in travel insurance? (4) |
- Failure of tour organiser - Lack of services or amenities * This section operates where there is a substantial withdrawal of services (such as water and electricity facilities, kitchen services and swimming pool facilities) at a hotel where the insured is staying , as a result of strike or industrial action lasting for at least 48 hours. - Loss of passport * Covers additional travelling and accommodation costs incurred in obtaining a replacement passport following loss or theft. - Legal expenses * This covers legal costs and expenses in pursuing claims for compensation and/ or damages arising out of death or injury of the insured. |
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What are the limitations in travel insurance? (4) |
- Policy exclusions are designed to protect the insurer from extraordinary situations. General exclusions within a typical policy are as follows: - Death, bodily injury or sickness caused by unprescribed drugs or intoxicants; due to insanity, pregnancy or childbirth, consequent upon any physical or mental defect; whilst taking part in certain hazardous activities; or as a result of suicide or Self-inflicted injury. - Loss of luggage caused by confiscation; stamps, manuscripts, documents; camping equipmemt; cash/ cheques unless reported to the police within 24 hours. - Damage to fragile objects -Terrorism |
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What property is covered in standard commercial insurance? (4) |
- Almost everything in the trade premises or shop is covered, including stock. - In some cases, the sum insured for certain foods, such as alcohol and cigarettes, is restricted, although this can be removed subject to an additional premium. - Many policies include, automatically, additional specified amounts of cover (usually a percentage increase) for seasonal increases in stock. - Fixtures and fittings and internal decorations for which the insured is responsible as tenant are included, unless the insured is the owner of the building. |
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What risks are covered in standard commercial insurance? (10) |
- Fire and additional perils. This covers fire, lightning, explosion, earthquake, aircraft, riot, malicious damage, storm, flood, escape of water, impact, damage to underground pipes or cables, escape of oil used for central heating, and collapse of television aerials. - Business interruption. This covers the loss of trading profit and increase in the cost of working due to an interruption of the business arising from damage caused by an insured peril, up to (typically) a period of twelve months from the date the damage occurred. - Theft - Money. Cover is provided for loss of money. - Glass. This covers plate glass windows, internal glass and damage to shop fronts. - Assault. This covers the insured or employees who may be assaulted by thieves. - Goods in transit. - Employer's liability. - Public liability. - Product liability. |
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What are the optional extensions to commercial insurance? (3) |
- Refrigerated stock. This extension covers spoilage of freezer contents due to breakdown of the appliance or failure of public electricity supply. - Business 'all risks' Also known as extended theft, this covers accidental loss or damage and is bought as extra protection for fixtures, fittings, trade equipment and possibly stock. Such cover excludes pilferage and shoplifting and is subject to an excess. - Legal expenses This covers the trader's legal costs in defending an action brought by a customer, employee or neighbour, as well as the cost of an action initiated by the trader faced with loss or possible loss as the result of someone else's actions. |
