PERILS & EXTENSIONS
What are the perils of the Fire Policy? (3)
Fire, lightning, explosion
What is the exclusion under the Basic Fire Policy pertaining to lightning?
Electrical devices
The most direct cause of loss in an unbroken chain of events
What is the coinsurance formula?
Did / Should x loss
What is a named perils policy and how does it differ from an all risks policy?
Named perils = only insureds against the perils that are listed
All risks = covers all losses except those excluded
When is sporting equipment excluded?
when the loss or damage is due to its use
Principle of indemnity
Returning the insured to the position they were in before the loss, up to the least of ACV, interest, amount of insurance
Other than the dwelling, name 3 other things covered under the term Dwelling Building
Structures attached, outdoor pools & permanently installed outdoor equipment, such as fences, swings, slides, sheds, etc.
Wind & Hail is covered by extension. When is coverage for this loss included for the interior and contents of a building?
When an aperture is created
What do exclusions list (2)
types of property that are not insured
perils that are never insured against or sometimes not insured against
Fortuitous Loss
an accidental loss
Name the 4 steps when reading a policy
1. review the definitions
2. review the property covered
3. review the perils insured
4. review the basis of claim payment, duties after a loss and the stat conditions
What is the main difference between the 3 homeowners forms?
The perils insured.
The definition of theft means the taking of property without the owners consent. Give two examples of when theft is excluded under all formats of insurance.
Theft by the insured or whom property is entrusted.
What is the definition of insured?
Relatives of the insd, people under 21 in their care, common law spouse for 3 years or 1 year if they have a child
Name the 3 different types of hazards
a physical hazard
a moral hazard
a morale hazard
What is covered under the lock replacement extension?
Financial assistance to rekey locks or replace them, if the keys are stolen and reported to police
Name the 4 water damage exceptions to the Water Damage Exclusion in the Homeowners Comprehensive Form.
1. The sudden & accidental escape of water or steam from within a plumbing, heating, cooling, sprinkler, or air conditioning system or domestic water container which is located within the insureds dwelling or detached private structures
2. The sudden & accidental escape of water from a domestic water container which is located outside the dwelling or detached private structures
3. Sudden & Accidental escape or water from a watermain located outside the insureds dwelling or detached private structures.
4.Water that enters the dwelling or detached private structure through an opening created suddenly and accidentally by an insured specified peril other than water damage.
Automatic Reinstatement
The reinstatement of coverage, without reduction in limits after a loss
An insurance broker takes his 4,000 lap top computer from home to work where it is stolen. His H.O. policy has a limit of 2,000 for Business property with a 1,000 deductible. How much will be paid under this claim?
$1,000