Insurance Policies and Coverages

Provides coverage for movable property on an open peril basis (covers everything not explicitly excluded).
The term "marine" refers to movable property, not necessarily travel across water.

Covers specific classes of valuable property, preprinted on the policy.
Eligible items: jewelry, furs, cameras, musical instruments, silverware, goldware, golf equipment, fine arts, stamp and coin collections, China, and crystal.
Provides worldwide coverage for these items.

Covers jewelry on a valued or Actual Cash Value (ACV) basis.
Includes a pair and set clause: If one item in a pair or set is damaged, only the damaged item is covered.
- Example: If one of a pair of earrings is lost, only the value of the single earring is covered.
Appraisal is usually mandatory.
Newly acquired items must be reported within 30 days, and an additional premium must be paid.

Similar to homeowners insurance.
Key difference: Personal property coverage is 40% of the dwelling coverage amount, whereas in homeowners it's 50%.
Loss valuation method: Replacement cost for the dwelling.
Personal property: Replacement cost.

A federal program, part of FEMA, that covers flood losses for homeowners, renters, and business owners in flood-prone areas.
Eligible structures must have two solid walls and a roof, be principally above ground, and not entirely over water.
Two options for coverage:
- Write Your Own (WYO): Available through private insurers, who receive part of the premium to cover costs.
- Direct: Directly through the NFIP.
Three components of the NFIP: insurance, floodplain management, and floodplain mapping.

Limits of liability:
- Up to $250,000$ for personal structures.
- Up to $100,000$ for personal contents.
Waiting period: 30 days after purchase date, unless:
- Purchased as part of a loan application, renewal, or extension.
- Purchased to change flood coverage during renewal (one-day waiting period).
- Property is in a new high-risk flood zone, and the policy is purchased within 13 months of the update (one-day waiting period).
Loss valuation method: Replacement cost on the dwelling, if the 80% coinsurance requirement is met.
Commercial insurance: Up to $500,000$ for direct or physical damage.
Emergency limits:
- $35,000$ for buildings.
- $10,000$ for contents.
The federal government, through FEMA, guarantees loss payments made by the NFIP.

Homeowner's policies cover unpowered boats and powered boats with:
- Outboard motors up to 50 horsepower.
- Inboard motors up to 25 horsepower.
Sailing vessels up to 26 feet long are covered, with up to $1,500$ in coverage.
Boat owner's policy:
- Part A: Liability coverage for bodily injury or property damage to others.
- Intended for boats that can be towed behind a vehicle.
- Structured the same as a vehicle insurance policy.
- Covers theft.

Provides liability coverage in addition to primary coverage (e.g., auto policy, homeowner's policy).
Minimum limits of liability: Coverage in increments of $1,000,000$ .
Underlying policy: The primary policy that the umbrella policy attaches to.
Self-Insured Retention (SIR): Similar to a deductible, but only required if a loss is not covered by the underlying policy.
Broader in coverage compared to an excess policy.
Umbrella policies broaden coverage, whereas excess policies only increase limits of liability.

Situations where the insured is at fault and must pay an injured party.
Lawsuit settlements from accidents at the insured's home, yard, or pool.
Damages or medical expenses when a guest is injured on the property.
Damages or medical expenses the insured causes to someone else or someone else's property.
Defamation (saying untrue things about people to make them look negative).