Personal Inland Marine Insurance

Common Characteristics of Inland Marine Policies and Endorsements

- Provide coverage on a worldwide basis - Are considered to be all risk coverage - Are typically written with No Deductibles - Are normally written on a Stated Value basis. Settlement following a loss is commonly based on the ACV, Replacement cost or sometimes Market value. Except for fine arts and antiques, which are often issued as an Agreed value contract. In some instances an Inland Marine policy is called a Personal Articles Floater and sometimes the Marine endorsement is called a Scheduled Personal Property Endorsement, as in a Homeowners policy.

Personal Property Form (Open Peril Coverage on a Blanket Basis)

- This form provides coverage for most kinds of personal property found in a home. - Coverage is not scheduled or listed, it is written open peril and on a blanket basis, unlike the personal articles floater or homeowners scheduled personal property endorsement. - It is similar to the coverage provided for personal property under Coverage C in a Homeowners policy endorsed to provide open peril coverage for personal property. - The personal property floater is commonly issued for condominium or apartment dwellers who cannot obtain this open peril coverage for personal property under the HO-4 or H0-6

National Flood Insurance Program (NFIP)

A federal program that enables certain property owners to purchase flood insurance. The Federal Insurance Administration administers the program under the Federal Emergency Management Agency (FEMA). The fed makes payment for, or subsidizes, all flood losses. Flood policies are available from participating private insurers who participate in the Write Your OwnProgram, and directly from the NFIP. Agents do not have authority to bind coverage with the NFIP, but all licensed agents and brokers may write flood insurance with the NFIP. Communities in flood prone areas must have established an approved flood control program in order to participate in the NFIP and are called participating communities. If a property owner lives in a community that is not a participating community, the property owner CANNOT purchase flood insurance, regardless of the degree of flood risk. Flood policies provide protection for direct loss to insured property such as a dwelling and its contents. Flood is defined as a general and temporary condition of partial or complete inundation of land. The land MUST be normally dry land and the flood must involve: - 2 or more acres of the insured's land, OR the insured's piece of property AND an adjacent piece of property - The inundation of land may be the result of: - Overflow of inland or tidal waters, such as a tidal wave generated by a hurricane. - Unusual and rapid accumulation of runoff of surface waters. - Mudflow caused by accumulation of water - Collapse or destabilization of land along a shoreline resulting from erosion or the effect or waves or water currents exceeding normal, cyclical levels Exclusions include personal property located in basements, loss of profits, loss of access to property, business interruption, additional living expenses, ordinance or law, earth movement, theft, fire, explosion, wind, freezing, and damage to lawns, trees, shrubs, plants, and growing crops.

Personal Jewelry Floater

Coverage may be written on a valued or actual cash value basis. Floaters contains a "Pair and Sets Clause". If an item is part of a set (such as one diamond earring), its value is reduced by more than half if one item of the set is covered by a loss, since that item is worth more as a "set". The "Pair and Set Clause' specifies the conditions and the policy limit should this type of loss occur. In no case will the loss of one item in a pair or set be considered the same as a loss of an entire set or pair.

Valuation

Most current policies provide coverage on a Replacement Cost basis. Older policies were written on a Actual Cash Value basis. This method of valuation is still available if requested. A boat owners policy is normally written on an Open Peril Basis covering the boat (Hull), motors, trailers, equipment and accessories related to the boat and trailer as indicated on the Declarations page.

Musical Instrument Floater

No coverage is provided if the covered instruments are played for remuneration, or a fee. Anyone playing for hire must purchase an endorsement and pay an additional premium. the insured must report newly acquired items within 30 days.

Watercraft Package Policy Structure

Section I - Property A - Insured property section I of the policy provides open peril coverage for the hull, motor, trailer, equipment, and accessories manufactured for marine use. Section II - Liability Coverage B - Watercraft Liability (BI/PD) Coverage C - Medical Expense (Med Pay) Coverage D - Uninsured Boaters. ******** In Boat-owners and Auto Policies, Med Pay covers you, your family, and anyone in or on your boat or auto. In policies other than Boat-owners and Auto, Med Pay is to others.

Cameras Floater

The insured items are scheduled, with the exception that blanket coverage is provided on items such as shades, filters, etc. Automatic coverage is provided on newly acquired items for 30 days at a limit of insurance up to 25% of the limit designated on the schedule.

Earthquake Endorsement

The peril of earthquake, or earth movement, is excluded on virtually all property policies. It may be added to most homeowners policies by endorsements and, in some jurisdictions, such as California, may also be purchased as a separate policy. Included in the peril of earthquake are earth movement, volcanic eruption, land shock waves or tremors; before, during or after a volcanic eruption, landslide, mudslide, mudflow, sinkhole, and the rising, sinking, or shifting of the earth. All earth movements occurring within a 72 hour period are considered a single occurrence of earth movement.

Fine Arts Floater

This floater covers such items as paintings, etchings, pictures, tapestries, rare manuscripts, and antiques. The floater provides automatic coverage for 90 days for newly acquired items. Coverage is usually written on a valued, or agreed, basis. Additional exclusions include: - Loss caused by the restoration or repairing process. - Breakage that is not caused by fire, lightening, explosion, aircraft, collision, windstorm, earthquake, flood, malicious mischief, theft, or derailment or overturn of a conveyance. - Mysterious disappearance.

Personal Effects Floater

This floater provides open peril coverage for items worn or carried by tourists and travelers. The coverage applies worldwide, but not at the insured's home.

Outboard Motorboat Policy

This policy is an Inland Marine form which is designed to cover outboard motors and boats against a direct loss. - The coverage is normally written on an open perils basis, but may be written on named perils. - The policy is written on an actual cash value basis. It might be desirable to adjust the coverage limits downward as the boat ages. - Liability coverage is normally picked up in Section II of a Homeowners Policy.

Endorsement Unique to Mobile Home Insurance

Transportation/Permission to Move Endorsement - in addition to the covered perils listed, this endorsement will also provide coverage to protect it from impending danger or harms way. The same $500 that is used to provide coverage under the Additional Coverage "Property Removed" would apply. Provides coverage for 2 reasons: - Damage during transport; and - To escape harms way Provides coverage up to 30 days while mobile home is being moved to a new location for following reasons: - Collision - Upset - Stranding - Sinking Mobile Home Actual Cash Value Settlement Endorsement - This endorsement may be used when the insured does not desire to insure the mobile home to 80% of replacement cost.

Write Your Own (WYO Program)

a cooperative effort involving FEMA and the private sector that allows existing property and casualty insurance companies to write, issue, and service flood insurance under their own names. It is estimated that over 90% of the flood insurance policies in force are maintained by WYO companies. The remaining polices are written and maintained directly by FEMA. WYO companies, according to guidelines and regulations of the NFIP, may structure their flood insurance business within their existing personal lines business. this provides incentive for producers or agents to place their flood business with the WYO companies they represent.

Boat Owners Policy

a package policy that provides both property and liability coverage and is similar in design to the homeowners policy. The coverage it provides is similar to that provided by the personal auto policy. The policy is generally used to insure boats that can be towed by a car. Most policies limit coverage to open-cockpit vessels. Ex. Bass boats, sail boats, flat bottom boats, or roundabouts that are 26 feet or less in length.

Personal Inland Marine Insurance

can be attached by endorsement to a Homeowners or Dwelling Policy; it may also be written as a separate policy. This is a form of coverage used to insure moveable property against direct loss. 3 most commonly used Personal Inland Marine Forms are: - Personal Articles Form - Personal Property Form - Personal Effects Form

Yacht Policy

designed for larger vessels, many of which have crew members. Larger vessels are normally insured under the complete package of yacht coverages, which includes in addition to Hull Insurance, Protection and Indemnity and Medical Payments. "Lay Up warranty" - applies when the insured boat is in storage and allows for a return of premium due to the reduced risk of the boat not being used when laid up. If the insured operates the yacht during the lay-up period, no coverage is provided. - Insured is not covered if boat navigates outside of the said territory stated in the policy. Also offers: - Protection and indemnity coverage for the insured's legal liability for bodily injury and damage to property of others. - Personal property coverage for property on the yacht - Coverage for fuel spills, commercial towing, and dinghies. Loss settlement is usually "a great value" and/or RIC. Coverage is normally (full marine) All Risk or Limited Hull (named peril) Warranties are used to establish geographical cruising limits to create premium discounts for lay up coverage

Mobile Home Insurance

insurance for these homes may be written by adding a Mobile Home Endorsement to a Homeowners Policy, or by writing a separate Mobile Homeowners Policy. Under ISO rules, an owner occupied home may be covered under an HO-2 or HO-3 by endorsement. Policy includes Section I - Property and Section II - Liability, which are similar to the corresponding sections in a Homeowners Policy. Separate policy may be written on an open perils basis with losses to the mobile home valued on a replacement cost basis, with other items of property being valued on an actual cash value basis. Typically endorsements available for attachment to a homeowners policy are also available for coverage with a mobile homeowners policy.

Personal Umbrella Policy

liability insurance provided on an excess basis. May be issued as an endorsement added to a homeowners policy or as a standalone policy. Purpose of umbrella policy contains three elements: - It provides an additional layer of liability insurance after the limits of underlying primary policies are exhausted due to paid claims. - It provides coverage on a broader basis than the primary policies. - It drops down to provide first-dollar coverage when the underlying primary policies don't provide coverage Coverage is usually written in increments of $1 million, with a single limit per occurrence covering claims for both Bodily Injury/ Property Damage, and Personal Injury in excess of the insured's underlying policy limits. Primary insurance in place is required by Insurance companies issuing umbrella coverage since primary pays before umbrella Umbrella acts as excess coverage over the limits. If the coverage in an umbrella is broader that the underlying policy meaning the primary policy doesn't insure a loss, the umbrella will drop down and cover the entire loss. When an umbrella acts as primary insurance, the insured pays a self-insured retention, which is a method of loss cost-sharing. Only time the insured must pay a self-insured retention is when the umbrella drops down. If the primary policy pays its limit, and then the umbrella drops down. If the primary policy pays its limit, and then the umbrella policy makes payment, the insured does NOT pay the self-insured retention. Exclusions: - Losses arising from bodily injury and property damage if the insured fails to maintain the required underlying insurance - Intentional injury - Damage to property in the care, custody, or control of an insured. - Aircraft - Business pursuits - Professional Liability - Directors and Officers Liability - Discrimination

Fair Access to Insurance Requirements (FAIR)

provides basic property insurance to property owners who are unable to secure coverage in the standard property marketplace. Most FAIR plans operate in a similar fashion. Utilized when existing homeowners or dwelling property coverage is being cancelled or non-renewed due to loss history or the property owner or the property fail to meet other underwriting guidelines of an insurer. Can also be purchased when a dwelling is currently uninsured, and no carrier in the standard market place will write coverage. Farm property isn't eligible, though certain types of incidental business use may be allowed. Agents don't have binding authority and coverage is usually bound only after the receipt of the application and first premium payment by the insured. Insurance may not be rejected simply because of environmental hazards that are beyond the insured's control. Property may be subject to inspection before it is accepted in the plan. No coverage is provided for floor. It is primarily used for inner city properties where vandalism

Difference in Conditions (DIC) Insurance

requires the use of a special form designed to fill in the coverage gaps contained in a property policy. There is no standard policy form. Coverage is written on an open perils basis, excluding losses by perils that are covered under standard property (such as fire, lightning, windstorm, hail, etc) The form does not contain a Coinsurance or Pro Rate clause, and the form may be written from an amount of insurance different from the limit of insurance provided by the policy it complements. Normally carries a high deductible, such as $10,000 or more. The form is often written to provide coverage in the event of earthquake, flood, collapse, and subsidence.

NFIP Eligibility, Limits and Conditions

the Standard Flood Insurance Policy (SFIP) Dwelling form provides coverage for building and/or contents and is issued to a homeowner, residential renter, or an owner of a residential building with 1-4 units. The SFIP General Form provides coverage for building and or contents issued to an owner of a residential building with 5 or more units, an owner or lessee of a non-residential business of building. Residential Condominium Building Association Form (RCBAP) is the standard form that is provided for buildings owned by a residential condominium association. Emergency Program - available for communities in the earliest stage of participation in the NFIP. Available coverage for a single-family dwelling or a residential building with 1-4 units is $35,000 on the building and $10,000 on contents. The amount of coverage available on residential buildings with 5 or more units and non-residential buildings is $100,000 on the building and $100,000 on contents. Example: - Single-Family and Residential up to 4 units for building/contents: $35,000 building and $10,000 for contents. - Other residential and nonresidential: $100,000 building and $100,000 for contents Regular Program - the final phase of a community's participation and requires an approved flood control program. Maximum amount of coverage for a single-family dwelling or residential building with 1-4 units of $250,000 on the building and $100,000 on contents. Coverage for residential buildings with 5 or more units is $500,000 on the building and $100,000 on contents. Coverage for nonresidential business or other buildings is $500,000 on the building and $500,000 for contents. Example: - Single-family and Residential up to 4 units for building/contents: $250,000/$100,000 - Residential up to 5 units: $500,000/$100,000 - Nonresidential: $500,000/$500,000 Coverage becomes effective on the 30th calendar day after the applicant completes the application and pays the premium. Property removed to protect it from flood is covered for 45 days at other locations. Each type of property loss is subject to a deductible. The NFIP Deductible is $1,000 each for both building and contents if the building coverage is less than or equal to $100,000. If the building coverage is over $100,000, the deductible is $1,250. A contents-only policy will have a $1,000 deductible.

Personal Articles Floater (Scheduled Article Floater)

the basic form used to insure "individual" items of personal property on an itemized or a scheduled basis. - Claims are normally settled on an "actual cash value basis" with some exceptions - Coverage is provided worldwide, with some exceptions - Coverage is provided on an open perils basis with very few exclusions such as: wear and tear, insects or vermin, intentional loss, and war. Specific classes of property have additional exclusions. - Coverage may be provided for classes of property consisting principally of the following: - Jewelry - Furs - Cameras - Musical Instruments - Silverware and Gold-ware -Golfer's Equipment -Fine Arts - Stamp Collections - Coin Collections - China and crystal