Unit 6-Dwelling Insurance and Unit7 - Home owners Insurance

Dwelling Insurance

part of your homeowners policy that covers the physical structure of your house, like walls, roof, and attached structures

Property Coverages

Coverage A - Dwelling, Coverage B - Other structures, Coverage C - Personal property, Coverage D - Fair rental value, and Coverage E - Additional living expenses

DP-1 Basic Form

A named peril policy for both structure and contents (if covered). Vandalism or malicious mischief coverage (VMM) is optional. Covers some indirect losses when they result from a direct loss, such as rental value.

DP-2 Broad Form

-DP-1 perils, EC perils, and VMM

-Damage by Burglars

-Falling objects

-Weight of ice, snow, or sleet

-Accidental discharge or overflow of water or steam

-Sudden and accidental tearing apart, cracking, burning, or bulging

-Freezing

-Sudden and accidental damage from artificially generated electrical current

DP-3 Special Form

An all risk policy (on the structure coverage only), in which anything not excluded is covered. Contents (if covered) are still named peril, as in the DP-2. Includes all DP-1 and DP-2 coverage.

Coverage L - Personal Liability

At fault, bodily injury to others, property damage to others, on and off premises.

Coverage M - Medical Payments to Others

The insurer will pay all necessary medical expenses incurred within three years of an accident that causes bodily injury

BAILED

bonds, aid, interest, loss earnings, expenses, defense costs

Residental theft coverage endorsements

- not auto-included in dwelling policy

-on/off premises

-broad- owner occupied

-limited- not owner occupied

Special limits for theft

$1,500 - jewelry, watches, and furs

$2,500 - firearms and related items

$2,500 - silverware, goldware, and pewterware

Homeowners Policy

Insurance that protects property owners from property and liability risks

Homeowners Insurance

Provides payment to cover liability losses as well as damage and loss of the home structure and its contents

Forms/Types of Homeowners Policies

HO-2: Broad form; owner occupant

HO-3: Special form; owner occupant

HO-4: Tenants or renters

HO-5: Comprehensive form; owner occupant

HO-6: Condominium owners

HO-8: Modified form for special risks

Debris Removal Coverage

pays to remove and dispose of the debris of covered property if damaged by a covered peril

Property Endorsements

-personal property replacement cost

-the scheduled personal property endorsement provides a separate schedule of insurance for items of personal property

-permitted incidental occupancies

-earthquake

-limited fungi, wet or dry rot, or bacteria

-home day care

Schedule personal property endorsement

covers specialty items such as jewelry, furs, firearms, cameras, (each item individually listed on policy with value assigned to each item, usually covered on open peril basis)

Coverage E: Personal Liability

- Bodily injury and property damage

-insured at fault

-anywhere in the world

Coverage F: Medical Payments to Others

pays all necessary medical expenses incurred within three years of an accident that causes bodily injury.

Watercraft Coverage

-Sailboats less than 26 feet in length

-Boats with inboard motors of 50 horsepower or less

-Boats with outboard motors of 25 horsepower or less

Liability Exclusions

- Liability for injury or damage that is expected or intended by the insured

- Liability assumed through a contract

- BI or PD arising out of business pursuits or the rendering of or failure to render professional services

- BI or PD arising out of the rental of any part of the premises, except for the rental of part of an insured location as a residence

- Liability arising out of ownership, maintenance, use, loading, or unloading of aircraft, watercraft, and motor vehicles (except one used to service the premises or assist the handicapped)

- Liability arising out of the transmission of a communicable disease by an insured

- Liability arising out of sexual molestation, corporal punishment, or physical or mental abuse; and liability arising out of the use, sale, manufacture, delivery, transfer or possession of a controlled substance (does not apply to the legitimate use of prescription drugs)