P&C Ch. 5 Vocab

  1. Dwelling Policies
    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.
  2. homeowners
    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
  3. Coverage A - Dwelling
    insures the dwelling and all permanent attachments to the dwelling. Replacement Costs.
  4. Coverage B - Other Structures
    protects other structures on the insured's premises...detached garages, sheds, etc. Replacement Cost.
  5. Coverage C - Personal Property
    covers personal property... furniture, clothing, toys, electronics and other household goods. ACV. Limit is 10% of Coverage A.
  6. Coverage D - Fair Rental Value
    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.
  7. Coverage E - Additional Living Expenses
    only available to policyowners who inhabit the dwelling
  8. Homeowners Policies
    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]
  9. Homeowners Basic Form Perils (FLEWRVVVS and THEFT)
    • Fire
    • Lightning
    • Explosion
    • Wind and Hail
    • Riot and Civil Commotion
    • Vandalism
    • Volcanic Action
    • Vehicles and Aircraft
    • Smoke
    • and Theft
  10. Homeowners Broad Form Perils 
    • The Basic Perils plus...
    • Plumbing
    • Falling Objects
    • Weight of Snow, Ice, or Sleet
    • Plus the Additional Coverage of Collapse
  11. Homeowners Special Form Perils
    All Risk

  12. HO-8-Older Homes
    • Basic Perils on A&B and Basic on C
    • 100% on A, 10% on B, 50% on C, 10% on D
  13. HO-2-Dwelling
    • Broad Perils on A&B and Broad on C
    • 100% on A, 10% on B, 50% on C, 30% on D
  14. HO-3
    • Special Perils on A&B and Broad on C
    • 100% on A, 10% on B, 50% on C, 30% on D
  15. HO-5
    • Special Perils on A&B and Special on C
    • 100% on A, 10% on B, 50% on C, 30% on D
  16. HO-4-Renters
    • None on A&B and Broad on C
    • 50% on C, 30% on D
  17. HO-6-Condo
    • Broad on A&B but limited and Broad on C
    • 100% on A, 10% on B, 50% on C, 50% on D
  18. Declarations Page
    name, address, peril power, endorsements, deductible and liability limits
  19. Insuring Clause
    says that the company agrees to provide all the benefits described in the policy subject to the limitations and exclusions noted
  20. Conditions
    has the exclusions in it
  21. Additional Coverages
    • 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
  22. Exclusions found in basic, broad, and special forms
    • 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
  23. Exclusions found only in the special cause of loss form
    • 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
  24. Conditons
    • Death of Named Insured
    • Volcano Eruption Period
    • Pair and Set
  25. Deductible
    the standard deductible is $250 for section 1 and for the HO-8 its $100
  26. Section 2 - Liability
    pays for the other guys and addressing negligence
  27. Coverage E - Personal Liability (BI & PD)
    bodily injury, property damage. on and off premises. negligence is required
  28. Coverage F - Medical Payments to Others
    negligence is not an issue, $1000 per injured person and up to 3 years from the date of the accident. way to avoid lawsuits
  29. Mobilehome Endorsment
    can be added to HO-2 or HO-3
  30. Other Endorsement
    • Permitted Incidental Occupancies
    • Business Pursuits 
    • Home Day Care
    • Personal Injury
    • Watercraft
    • Earthquake
    • Replacement Cost
    • Scheduled Personal Property
Card Set
P&C Ch. 5 Vocab
P&C Ch. 5 Vocab