Property Coverage
List the two primary differences between the HO-3 and DP-3?
DP-3 doesn't provide Theft coverage for personal property or liability coverage.
Initial phase of a community's participation in the National Flood Insurance Program, in which property owners in flood areas can purchase limited amounts of insurance at subsidized rates.
List all 5 perils excluded by personal Inland marine coverage.
1. War
2. Nuclear hazard
3. Governmental action
4. Intentional loss
5. Neglect
List 3 loss exposures and 3 risk control possibilities for small watercrafts.
• Windstorm damage
• Perils of the sea
• Theft
• Liability for damage to other property or people
• Injury to operator or passengers
Risk control possibilities:
• Boating courses
• Supervision of young operators
• Use of life jackets
• Operator sobriety
• Vessel maintenance
What is Write-Your-Own (WYO) program?
Coverage B–Other Structures, which structures are specifically excluded under DP-3. There are two listed in the chapter.
What are Grave Markers and Mausoleums?
NFIP is only written in specific communities, how can a community become eligible for the NFIP?
By application and by being identified as flood-prone.
What's the difference between inland marine insurance and ocean marine?
Inland marine is used to insure property that moves over land.
List 3 loss exposures and 3 risk control possibilities for larger boats and yachts.
Loss exposures:
• Windstorm damage
• Fire damage
• Theft
• Perils of the sea
• Liability for damage to other property or people
• Injury to operator or passengers
• Injury to crew
Risk control possibilities:
• Boating courses
• Proper maintenance
• Operator sobriety
A policy designed to cover property that floats, or moves, from location to location.
What's a floater?
What do dwelling properties cover? there are 6.
1. Owner-occupied one- to four-family dwellings
2. Tenant-occupied one- to four-family dwellings
3. A dwelling in the course of construction
4. Mobile homes at a permanent location
5. Houseboats, in some states
6. Certain incidental business uses by the owner or tenant
How does the NFIP provide flood insurance coverage?
1. The NFIP issues flood insurance policies for dwellings, general property (including commercial property), and residential condominium building associations.
2. The NFIP generally requires a 30-day waiting period before coverage becomes effective for new flood insurance policies and for endorsements that increase coverage on existing policies.
What is the purpose of watercraft policies?
1. Watercraft policies address the needs of insureds who own recreational watercraft without length or horsepower limitations.
2. Provisions of watercraft policies generally deal with the navigation territory in which coverage applies, property damage coverage, liability coverage, and medical payments coverage.
List 3 loss exposures and 3 risk control possibilities for Small personal watercraft.
Loss exposures:
• Liability for damage to other property or people
• Injury to operator or passengers
• Collision damage to watercraft
Risk control possibilities:
• Training
• Supervision of young operators
• Use of life jackets
• Operator sobriety
Property insurance coverage covering all causes of loss not specifically excluded.
What is special form coverage?
List 6 Dwelling policy excluded causes of loss. There are 11 listed in the chapter.
1. Ordinance or law (unless proved by Other Coverages)
2. Earth movement, such as an earthquake
3. Water damage, such as flood and backup of sewers and drains
4. Power failure that occurs off the described location
5. Neglect on the part of the insured
6. War
7. Nuclear hazard
8. Intentional loss
9. Weather conditions that contribute to any of the preceding excluded causes of loss
10. Acts or decisions of other persons, groups, organizations, or governmental bodies
11. Faulty construction, planning, materials, or maintenance
Second phase of the National Flood Insurance Program, in which the community agrees to adopt flood-control and land-use restrictions and in which property owners purchase higher amounts of flood insurance than under the emergency program.
What is the NFIP regular program?
1. Tailored coverage—The coverage is tailored to the specific type of property to be insured, such as jewelry, cameras, or musical instruments.
2. Customized policy limits—The insured may select the appropriate policy limits.
3. No deductible—Policies are often written without a deductible.
4. Special form coverage—Most policies insure property worldwide with special form (open perils) coverage, subject to exclusions.
5. Structure—Policies have a shared structure that consists of a declarations page, common policy provisions (including the insuring agreement, definitions, exclusions, and conditions), and a coverage form
What are some covered property losses for small boat policies?
damage to the boat from collision with another object (such as a pier), theft of the boat’s motor or equipment, lightning damage to the boat’s electrical or navigational equipment, and wind damage to a sail.
Accidental causes of loss that are peculiar to the sea and other bodies of water.
What is Perils of the seas?
What are 3 reasons why coverage might be excluded in an umbrella policy?
Coverage may be excluded if an insured is using their vehicle for taxi services, such as uber or lyft.
Aircrafts
Workers' comp, or any obligation for which an insured is legally liable under workers comp, disability benefits, or similar law.
After FEMA completes its assessment of a community, creates a FIRM, and calculates actuarial rates, the community is promoted from the emergency program to the second and final NFIP phase, the NFIP regular program
What is the maximum length of a vessel that is covered under a standard boatowners policy?
26 ft long
What does medical coverage include for boatowner policies?
Medical payments coverage usually includes coverage for bodily injury-related expenses while someone is in, upon, boarding, or leaving the covered watercraft
Insurance that covers physical damage to vessels, including their machinery and fuel but not their cargo.
What is Hull insurance?