Coverages
In commercial property insurance, what is required to trigger coverage?
Physical damage.
Name 5 examples of basic perils.
Fire and lightning, smoke, civil commotion, sprinkler leakage, aircraft or vehicles, vandalism, explosion riot.
Name some key components of a property policy.
Territory, covered perils, perils excluded, named insured, effective dates, coverage, terms and conditions, valuation, limits and sublimits.
What is the difference between individuals and organization property types within commercial property insurance?
Individuals: Includes land and anything permanently attached to it.
Organizations: These are movable items owned by the insured, either inside the building or elsewhere.
Name 5 examples of CAT perils.
Named storms, tornado, windstorm, earthquake, flood.
What is an "All risk property" policy? (ARP)
Covers direct loss caused by any insured peril which is not excluded.
Name five examples of commercial property insurance coverage.
Business interruption insurance (BI), Contingent business interruption insurance, business personal property, property in transit, outdoor property. Etc.
Name three examples of peril exclusions.
Faulty workmanship, nuclear, wear and tear, war, terrorism and pollution.
Define "named" or "listed" perils policy.
It protects against certain peris named in the policies.
Name some additional coverages related to property insurance.
Equipment breakdown insurance, terrorism, fine arts, inland marine, PEMA, DIC/DIL, builders risk, contractors equipment.
Why peril exclusions exist?
To limit insurer's risk exposure, to keep premiums affordable by excluding high risk or predictable events, to encourage policyholders to purchase additional or specialized coverage.
What is the meaning of "replacement cost"?
It is total ost to replace insured property without adjustment or depreciation.
What three conditions need to be reviewed when a p claim has been filed under a property policy before coverage can be confirmed?
Direct physical damage has occurred, damage has occurred to the insured property that is coered by the policy, the damage must be from a covered peril.
What does COPE stand for and what is its main purpose?
Construction, occupancy, protection, exposure.
Its main purpose is to help insurers assess different dimensions of risk associated with a property.
What is the meaning of "Actual cash value" (ACV)?
Amount equal to the replacement cost of the damaged or lost property minus depreciation.