P&C Ch. 5 Vocab

offer basic (DP-1), broad (DP-2), and special (DP-3) levels of covered perils. DP-4 offers no building coverage (basic). sold to landlords.

had to own it and live in it. provides personal liability coverage and they afford theft protection for personal property. is a multi-line policy...both property and casuality

insures the dwelling and all permanent attachments to the dwelling. Replacement Costs.

protects other structures on the insured's premises...detached garages, sheds, etc. Replacement Cost.

covers personal property... furniture, clothing, toys, electronics and other household goods. ACV. Limit is 10% of Coverage A.

indirect or consequential loss coverage designed to protect the landlord's cash flow in the event that his rental unit is rendered uninhabitable by a covered peril. Limit is 20% of Coverage A.

only available to policyowners who inhabit the dwelling

has 2 sections: section 1 is property (2 party) [Coverage A - Dwelling {RC-100%}, Coverage B - Other Structures {RC-10%}, Coverage C - Personal Property {ACV-50%}, & Coverage D - Loss of Use - 30%] and section 2 is casualty (3rd party) [Coverage E - Personal Liability & Coverage F - Medical Payments to Others]

• Fire
• Lightning
• Explosion
• Wind and Hail
• Riot and Civil Commotion
• Vandalism
• Volcanic Action
• Vehicles and Aircraft
• Smoke
• and Theft

• The Basic Perils plus...
• Plumbing
• Falling Objects
• Weight of Snow, Ice, or Sleet
• Plus the Additional Coverage of Collapse

All Risk

8-2-3-5-4-6-HIKE

• Basic Perils on A&B and Basic on C
• 100% on A, 10% on B, 50% on C, 10% on D

• Broad Perils on A&B and Broad on C
• 100% on A, 10% on B, 50% on C, 30% on D

• Special Perils on A&B and Broad on C
• 100% on A, 10% on B, 50% on C, 30% on D

• Special Perils on A&B and Special on C
• 100% on A, 10% on B, 50% on C, 30% on D

• None on A&B and Broad on C
• 50% on C, 30% on D

• Broad on A&B but limited and Broad on C
• 100% on A, 10% on B, 50% on C, 50% on D

name, address, peril power, endorsements, deductible and liability limits

says that the company agrees to provide all the benefits described in the policy subject to the limitations and exclusions noted

has the exclusions in it

• Debris Removal
• Reasonable Repairs
• Trees, Scrubs, and Plants
• Fire Department Service Charge
• Removal 
• Forgery, counterfeit money & credit cards
• Loss assessment
• Glass
• Ordinance or law
• Landlord furnishings
• Building improvements and betterments

• war
• nuclear
• flood
• earth movement
• neglect
• intentional losses
• government action
• off premises power failure
• concurrent causation
• sewer back up and sump pump failure
• building ordinance - except as provided by additional coverage

• damage caused by your own animals
• birds, vermin, rodents, or insects
• pollution
• wear and tear
• hidden mold or dry rot
• settling of patios, foundations, floors or walls
• vandalism after 60 consecutive days of vacancy
• theft to a house under construction
• freezing or ice damage to pavement, patio, fence, or foundation
• freezing of plumbing if heat is not maintained in the building

• Death of Named Insured
• Volcano Eruption Period
• Pair and Set

the standard deductible is $250 for section 1 and for the HO-8 its $100

pays for the other guys and addressing negligence

bodily injury, property damage. on and off premises. negligence is required

negligence is not an issue, $1000 per injured person and up to 3 years from the date of the accident. way to avoid lawsuits

can be added to HO-2 or HO-3

• Permitted Incidental Occupancies
• Business Pursuits 
• Home Day Care
• Personal Injury
• Watercraft
• Earthquake
• Replacement Cost
• Scheduled Personal Property