Terms
This is the term for a reduction in value, particularly due to wear and tear
What is Depreciation
This refers to an excess of water on land that is normally dry, affecting two or more acres of land or two or more properties
Flood
The definition of this is an amendment to an existing insurance contract that changes the terms of the original policy.
Endorsement
This Homeowners Policy form covers an Owner Occupied or Tenant Occupied condo exposure
HO-6
Maria has a FL Auto Policy with CSL limits of $500,000. She has matching UM limits with stacked coverage. She has 3 cars on her policy with Collision and OTC coverage deductibles of $1000. Last week she was involved in an accident with an uninsured motorist and sustained some serious injuries. How much total coverage from her policy would be afforded for her injuries sustained?
1.5 million (Since coverage is stacked and she has 3 cars the UM limit of $500,000 would be multiplied by 3)
A legal term meaning that a product is suitable for its intended purpose and that it fits an ordinary buyer's expectations
Implied Warranty
This includes earthquake, land shock waves or tremors before, during, or after a volcanic eruption, landslide, mudslide, or mudflow
Earth Movement
This conditions of average relates to the proportion of an asset that an insurance policy covers
Pro Rata
This is the most common type of Homeowners Insurance for Single Family Homes and provides open perils coverage on Dwelling and named perils coverage on contents.
HO-3
Olivia has an HO-3 Policy with a Dwelling Limit of $336,000. The Replacement value of her home is $560,000. On Tuesday a fire broke out in her kitchen causing $25,000 in total damage. How much will the policy pay towards this loss?
$18,750
Did ($336k) over Should ($448k) times the loss (25k)
This is a contract between a policyowner (and/or insured) and an insurance company which agrees to pay the insured or the beneficiary for loss caused by specific events
Insurance Policy
This refers to any loss arising out of any act an insured commits or conspires to commit with the intent to cause a loss.
Intentional Loss
This refers to coverage that is broadened during a policy period and will automatically apply
Liberalization Clause
These Policy Forms are often used for a single family home that is vacant or rented to others. They include a Basic Form, Broad Form, and Special Form.
Dwelling Policies
DP1 - Basic Form
DP2 - Broad Form
DP3 - Special Form
Bethany has an HO-5 policy. She has PAF for her jewelry totaling $50,000. 1 week ago she acquired a new ring valued at $10,000. Unfortunately she had not had a chance to notify her insurer to add it to her policy and it was stolen. How much, if any, will the policy cover for this loss?
$10,000
"We cover newly acquired property of a classof property already insured. The lesser of the following limits applies:
25% of the amount of insurance for that
class of property; or
$10,000."
This term refers to the depreciation in the value of a property due to becoming outdated.
Obsolescence
This refers to the destruction, confiscation, or seizure of property by order of any governmental or public authority but does not apply to such acts ordered to be taken at the time of a fire to prevent its spread.
Governmental Action
This coverage under Section II is considered "Good Will" coverage and cannot be subrogated
Medical Payments to Others
This Home Policy Form is known as a modified coverage form and is a type of home insurance for older, or historically significant homes that don't meet the requirement of a standard policy. It provides coverage on a Named Perils basis.
HO-8
Miller has an Auto Policy with a split limit of 100/300/50 and has elected to waive UM. On Monday he was involved in an accident with an uninsured motorist and sustained injuries totaling $10k. Is there any coverage available for him through his policy and if so how much?
$8,000
PIP insurance covers losses that include medical bills and lost wages if you are unable to work. If you need replacement services, you can use the funds to hire someone to do household chores, provide child care or drive.
PIP coverage pays 80 percent of medical bills incurred because of the crash up to the policy limit. It pays 60 percent of lost wages if the injured individual cannot work. If a person needs replacement services, PIP coverage pays 100 percent for these losses.
This term represents legal responsibility placed on one person for the acts of another.
Vicarious Liability
This refers to a self-propelled land or amphibious vehicle, or any trailer or semitrailer which is being carried on, towed, or hitched for towing by a self-propelled land or amphibious vehicle.
Motor Vehicle
This endorsement would provide the insured with extra coverage to offset a covered assessment from their HOA
Supplemental Loss Assessment Coverage
This policy iprovides specialized home insurance coverage for single-wide, double-wide, and triple-wide homes and typically covers on an open perils basis very similar to the HO-3.
HO-7
Cameron has an unendorsed HO-3 policy. His Coverage C limit is $100,000. While vacationing in Aruba his hotel room was broken into and his Rolex watch valued at $15,600 was stolen. How much, if any, would the policy cover for this loss?
$1500
This is the maximum Special Limit of Liability for theft of jewelry provided by the policy. For additional coverage items of high value should be scheduled by endorsement.