the newly acquired vehicle is automatically covered. Liability coverage is continuous until the end of the policy period. To continue physical damage coverage certain restrictions and limitations apply.

a contract of indemnity against liability by which an insurance company procures another insurance company to insure it against loss or liability.

the insured cannot abandon the property to the insurance company in exchange for full insured value.

A loss settlement condition that appears in many property insurance contracts including inland marine. States that if part or set is lost or damaged, the loss will be valued as the fair proportion of the total value of the set.

A named peril form lists the specific perils to be covered in the policy. The open peril form does not list the perils but provides broader coverage. Under open, all perils are covered except perils specifically listed as excluded in the policy.

these methods are used to determine the value of loss.

a separate limit per item to be insured applies. Example would be a separate limit on the building or the contents.

One limit that applies to both building and contents. With Blanket insurance, usually more than one location is insured under a single limit.

These are the risks that only effect a single individual or family and not an entire community. Examples, theft of property, fire that burns down a home, or an auto accident.

Something that becomes part of the policy condition, based on information given by the insured in an application or inserted by the insurer in the policy.

Open Perils, BIG AFFECT. Burglary, Ice and Snow, Glass Breakage, Accidental Discharge of water or steam, falling objects, freezing pipes, Electrical Damage, Collapse, tearing apart.

Windstorm or hail

Explosion

Riot or Civil Commotion

Vehicular Damage

Smoke

Volcanic Eruption

Vandalism

DP-3 special form

1.   Open perils coverage on the dwelling or other structures. Note that under open peril the burden of proof is on the insurance company. 

2.   Named perils coverage on the personal property contents. Covers perils hat are the same as those provided by DP-2 form. Under named peril, the burden of proof is on the insured.

DP-3 exclusions

1.   Losses excluded by the general exclusions (war, nuclear hazard, flood)

2.   Gradual and expected losses such as:

a.    Wear and tear, marring, deterioration, rust, mold, rot and contamination

b.    Inherent vice and latent defect

c.    Smoke from agricultural smudging or industrial operations

d.   Smog

e.    Mechanical breakdown

3.   tearing apart, cracking, burning or bulging

4.   losses caused by birds, vermin, rodents, insects or domestic animals

5.   wind, hail, ice, snow or sleet to antennas, lawns, plants, shrubs and trees

6.   Freezing-Provides coverage for freezing of plumbing, heating or air conditioning. Also applies to footings and other structures or devices that support all or part of a building or other structure.

7.   Theft of property not actually part of the insured dwelling or to a dwelling under construction.

Direct Loss Coverages

          Coverage A Dwelling Building- coverage is provided on the dwelling as described in the declarations section of the dwelling policy as well as any structure attached to this dwelling (such as a garage). Insured sets this based on the replacement cost.  Coverage a does not apply to land because the land would be unharmed in case of loss to property.

          Coverage B other structures- 10% of the coverage A amount which is an additional amount of insurance under DP-2 and DP-3. However, in the DP-1 form, if the insured has a detached structure the 10% is included in the dwelling limit and is not an additional separate coverage limit.

          Coverage B does not cover-

1.   Land, including land the property is located on.

2.   Any structure rented or held for rental to any person not a tenant of the dwelling, unless it is used solely as a private garage.

3.   Any structure used in whole or in part for commercial, manufacturing or farming. It does cover a structure that contains commercial property owned solely by the insured. or tenant of the dwelling provided that the property does not include gaseous or liquid fuel, other fuel.

4.   Gravemarkers including mausoleums.

1.   Accounts, bank notes, bills, bullion, coins, currency, deeds, evidence of debt, gold, passport.

2.   Animals, birds and fish.

3.   Aircraft.

4.   Boats (other than rowboats or canoes).

5.   Data including data stored in books of account, drawings or other papers of record, electronic data processing, tapes, wires, records discs.

6.   Credit cards or fund transfer cards

7.   Motor vehicles or other motorized land vehicles

8.   Hovercraft LOL

9.   Water or steam

10.                Gravemarkers

What is 

Homeowner Insurance

A multiline Policy, which means they combine property and casualty coverage in the same policy. They program provides the same property coverage that are available under the dwelling property program but also includes theft insurance and personal liability coverage under one contract.

HO-2, HO-3, HO-5, HO-8 covers owner-occupants which do not contain more than 4 families nor two roomers per family.

HO-4- tenants in non owned buildings used primarily for residential purposes.

H0-6- condominium coverage

 if the student is 24 and a relative or 21 and in the care of someone named on the policy.

Coverage A-Dwellings, Coverage B- Other Structures, Coverage C- Personal property and Coverage D- Loss of use. Coverages B,C and D stack on top of an are paid in addition to the coverage a limit.

Home Owners- Coverage A-Dwellings- Full replacement cost as long as the insured carries 80% of the replacement cost value. The insured selects the limit for Coverage A.

the dwelling listed in the declarations page of the policy, structures attached to the dwelling, materials or supplies located on or next to residence premises used to construct.

Personal property- 50% of Coverage A for one or two family dwellings, 30% for a three family dwelling and 25% for a four family dwelling.

Full limit of C applies to personal property anywhere in the world. Covers personal property owned or used by the insured. Example: Insured borrows a lawnmower and its destroy by use by the insured, covered.

when the insured is removing property from the premises when endangered by a peril insured against, coverage applies to any direct loss from any cause for no more than 30 day while removed. This coverage is not additional insurance and does not increase the limits of the policy.

Covered for limit of $500. This coverage is additional insurance and the deductible does not apply.

Collapse covers direct physical loss to covered property involving abrupt falling down or caving in of a building or any part of it. It is found in all the homeowner forms except the HO-8. Collapse is not additional insurance and does not increase the limits of the policy. It covers:

The perils insured against in the policy

Decay hidden from view

Hidden vermin of insect damage

Weight of contents, equipment, animals, or people

Weight of rain collected on a roof and

Use of defective/methods when the collapse occurs during construction or remodelling.

Broad form offers broader coverage for livestock

will pay the full amount, after retention is exhausted, included all the repairs paid after they are completed.

for the scheduling of mobile equipment separately from other farm property. Coverage may also be provided on a blanket basis for most items except cotton pickers and combines which must be specifically scheduled. Open perils basis.

Flood insurance

According to NFIP

a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties from:

Overflow of inland or tidal waters

Unusual and rapid accumulation or runoff of surface water from any source

Mudflow.

Flood will cover mudflow, but not mudslide.

Watercraft policies

Under home owners, coverage C provides 

$1,500 for structural damage to the watercraft as well as trailers and furnishings. This does not include theft.

Less that 50 horsepower

Motor boat-25 or less horsepower

Sailing vessel- less than 26 ft.

Stored watercraft

Boat is notified as under the policy with 45 days of acquisition.

If there is other insurance written on the same basis, recovery is pro rated with the other policies.

the policy provides up to 25% of the direct amount of the loss including the deductible to pay the debris removal. If debris is blown onto the Insured’s property, even if not owned by the insured, the policy provides up to $5,000 to remove it.

up to $2,500 for the loss of the electronics data from a covered cause of loss.

covered up to $2,500 for the perils covered by the policy.

If the insured or the insurance company recovers property after a loss, the recovering party must notify the other promptly and inform it of the recovery.

This form covers property under construction and can be purchased by building contractors, subcontractors, and/or owners of the property.

When an insured has interdependent operations in two or more buildings or at more than one location, blanket limits are ordinarily recommended.

This pays for loss of business income even after operations have been resumed, until the business has  been restored, but no more than 60 days from the date business resumed.

Covers expenses up to $15,000. This includes attorney fees to cover defense costs..

compensation to coal miners

Federal employees comp act

State adjuster information:

The penalty for a violation may not exceed