Property Overview-Types of Policies

Commercial Package Policies are made up of these components

-commercial propery coverage -general liability coverage -crime coverage -equipment breakdown coverage -auto coverage -inland marine coverage -farm coverage

4 Additional Coverages

-expense to reduce loss -civil aithority -alterations and new buildings -extended business income

Broad Form Covers 11 Basic Causes Plus

-falling objects (interior damage requires damage to exterior first) -weight of snow/ice/sleet -water damage caused by accidental discharge or leakage of water or steam

Special Form Covers

-fire -lightning -explosion -windstorm or hail -aircraft or vehicles -riot or civil commotion -vandalism -leakage from fire-extinguishing equipment -sinkhole collapes -falling objects -volcanic action -weight of snow, ice, sleet or water damage

Basic Form Covers 11 Causes

-fire -lightning -explosion -windstorm/hail -smoke -aircraft/vehicles -vandalism -sprinkler leakage -sinkhole collapse -volcanic action

3 Causes of Loss Forms

Basic Broad Special

3 Different Dwelling Policies

DP 00 01 DP 00 02 DP 00 03

Which of the following is not among the components that make up a commercial package policy?

Dwelling

6 Coverage Forms Available as Homeowners Coverage

HO-2 HO-3 HO-4 HO-5 HO-6 HO-8

Which of the following homeowners coverage forms applies to personal property and does not include structure coverage?

HO-4

2 Additional Conditions in Extra Expense Coverage

Limits on Loss Payments Loss Determination

Extended Business Income

actual loss of business income incurred during the period between when the date the property is actually repaired and operations resumed, and ending on the earlier of the date the insured could reasonably restore operations

Coverage E

additional living expenses are expenses above and beyond normal living expenses during repair of insured premises

DP 00 03

all perils covered on a replaccement cost basis unless specifically excluded personal property coverage (if elected) is covered under broad named perils

Homeowner Policies

are designed only for owner-occupied homes, and are package policies that include liability coverage

HO-2

broad form covers named perils with certain named exclusions

Dwelling Policies

can be used fro owner-occupied, landlord, vacation or seasonal and some mobile homes. designed for residences that do not qualify for homeowners coverage due to age, condition, location, use, value or certain other factors

HO-5

comprhensive form provides coverage for open/special perils for dwelling other structures and personal property

HO-6

condominium owners provide broad coverage on the personal property of condominium owners with limited dwelling coverage

HO-4

contents broad form (also referred to as Tenants coverage) protects only personal property with no structure coverage

An insureds personal property is damaged by a covered peril. Under dwelling policy, this loss would be insured under

coverage C

DP 00 01

covers named perils and offers extended perils at an additional premium

DP 00 02

covers the named and extended listed in DP 00 01 plus some additional perils

Coverage A

dwelling covers attached structures and outdoor personal property or equipment used on premises

Which of the following commercial property coverage forms is used to insure businesses that cannot afford to be closed during repairs

extra expense

Coverage D

fair rental value (also known as loss of use in homeowners policies) covers replacement of rental income if the covered property is uninhabitable due to a loss caused by an insured peril up to 10% of the dwelling coverage applies

Which of the following is not among the 4 classes of inland marine risk?

foreign shipments

Personal Property Floaters

generally unscheduled and written on an open peril basis

Duties in the Even of Loss

in the business income coverage form requires the insured to resume all or part of the operations as quickly as possible

Building Coverage

includes the building outdoor fixtures and furniture items used to service the property permanently installed machinery and equipment and additions under construction including materialism supples and equipment within 100 ft of teh premises

Business Personal Property Coverage

insures business personal property located in or within 100 ft of the building and building improvements including leased property the insured is required to insure

Extra Expense Coverage

insures consequential loss and is used for businesses that cannot afford to be closed for repairs

Personal Effects Floater

insures marine policies designed to cover moveable commercial property, whenever it may be located

Coverage F HO

medical payments to others pays for necessary medical expenses incurred within 3 years of an accident

HO-8

modified coverage form (used mainly for older homes)provides coverage for the market value of the property

Personal Property

of others covers personal property if at the insured premises and in the insured's care, custody and control or if located within 100 ft of the described property

Coverage B

other structures covers separate structures at the same location this limit is usually 10% fo the dwelling coverage

Alterations and New Buildings

pays business income and extra expense losses due to damages to a new building, an alteration or addition to a new building

Claims Expense

pays expenses and costs incurred as part of defending a suit

Damage to the Property of Others

pays for damage caused by the insured to property of others

Civil Authority

pays for loss of business income due to civil authority prohibiting access to the property

Loss Assessment Coverage

pays for the insureds share of loss assessment charged by a corporation or association of property owners of which they are an owner or tenant

Coverage E HO

personal liability provides protection against bodily injury and property damage claims against the insured

Coverage C

personal property covers 10% of the limit extends anywhere in the world (except property of guests or servants, which is only covered while on the described premises) business property stored on premises, pets and aircraft and motor vehicles are excluded from coverage

First Aid to Others

provides coverage in the event the insured incurs expenses while rendering first aid for bodily injury to third parties

Personal Floaters

refer to movable personal property wherever it is located in the world

Commercial Package Policies (CPPs)

replaced monoline policies

Personal Articles Floater

schedules certain types of property

HO-3

special form covers the dwelling on an open peril basis and provides coverage for braod perils for personal propery

Loss Determination

the amount of extra expenses is based on all expenses that exceed the normal operating expenses that would have been incurred during restoration if no loss had occured

Limits on Loss Payment

there is no coinsurance clause instead the insurer will pay a percentage specified in the declarations depending on how long the restoration lasts

What is the purpose of "business income coverage" in a commercial property policy?

to protect against the loss of profits and fixed expenses that must continue to be paid during restoration following a direct loss to the premises

Business Income Coverage

which insures against the loss of profits and fixed expenses that must continue to be paid during restoration following a direct loss to the premises

Building and Personal Property Form

which is used to cover buildings business personal property and property of others on the insureds premises