Chapter 3 Purpose and general form structure

Boarder

A person who lives with someone else for an agreed upon price, usually for a considerable amount of time

Incidental occupancy

Minor uses that are accessory to or support the predominant occupancy

Occurence

An incident or event

Overinsurance

When a property’s insurance coverage exceeds its cash value

Personal property

Movable property of the insured

Premises

A house or building (including land and outer buildings) utilized by a business

Real property

Nonmovable property, such as land, a house, or other structures

Vandalism

Intentional destruction or damage to property

dwelling only, contents only, or both

What can dwelling policies be used for

Basic, broad, and special

Three basic coverages under the dwelling program

DP

How does ISO classify dwelling property policies

Up to 5 roomers or boarders, up to 4 residential units, properties in the course of construction, owner occupied tenant occupied or both, mobile homes on the basic form only if they contain no more than one apartment and are located at a permanent location listed in the policy, seasonal dwellings unoccupied for 3 or more months during a 12-month period, or no designed as farm property

Dwelling property policy can be purchased to insure properties solely used for residential purposes in what situations

They are incidental, are conducted by the insured on the dwelling premises, and if they are no more than 2 persons working at a time

Business occupancies can be accommodated under the dwelling property program as long as

Permissible Incidental occupancies

Include small service operations where sales of merchandise are not the primary function (barber shop)

Perils, coverages, or causes of loss insured against, other coverages, exclusions and conditions

What do the coverage forms applicable to the dwelling property policy define

Agreement

states that the insurer will provide coverage described in the policy in return for the premium paid and compliance with a applicable policy provisions

Defintions

Limited in nature

Deductible

Applies to all covered losses unless noted otherwise in the policy form

Coverages, including other coverages

Define direct and indirect property coverages, and additional coverages included in the premium change

Perils insured against

Vary by form and is a key differentiator in form selection

General exclusions

Perils not covered in all forms

Conditions

Specify when coverage will apply

Agreement, definitions, deductibles, coverages including other coverages, perils insured against, general exclusions, conditions

What does the DP form structure follow

Basic form

DP1

Named

What type of peril is a basic form

Broad form

DP2

Named

What type of peril is broad form

Special form

DP3

Open and named peril

What type of peril is special form