The cost to replace a damaged or destroyed item of property, without deducting depreciation. May be the basis of reimbursement for loss to buildings, or by endorsement, to personal property.
Quiz Answer:
Adjusts the loss settlement value to replacement cost without deduction for depreciation.
Term
Under the Commercial Property Policy, the value reporting form limits a settlement to which percentage if the first report is not filed in time?
Definition
75%
Term
The Farm's Basic Cause of Loss form adds the additional peril of collision, but it applies only to?
Definition
Coverage E Scheduled Farm Personal Property
Term
Peril
Definition
The cause of loss. Examples include fire, windstorm or explosion.
Term
Collision
Definition
A type of physical damageinsurance, which covers loss due to the insured object striking another object. Collision may also include upset of the insured object
Term
What is the requirement for changes in commercial property?
Definition
The policy may be changed only by endorsement
Term
Endorsement
Definition
A document, which is attached to the policy and modifies or changes the original policy in some way
Term
Describe the mortgage holder's condition.
Definition
Term
Preservation of Property
Definition
This is a Property insurance coverage, sometimes known as a removal, which provides coverage for property that has been removed from the premises following a covered loss.
Term
Which of the following perils is NOT covered under the Basic Cause of Loss form?
Definition
Basic Cause of Loss form DOES NOT cover falling objects except from an aircraft.
Term
Idemnity
Definition
A principle of insurance, which provides that when a loss occurs, the insured should be restored to the approximate financial condition occupied before the loss occurred, no better, no worse.
Term
What are standard deductibles in a commercial property policy?
Definition
The standard deductible is $500 for all loss or damage in any one occurrence for all perils other than hurricanes. For hurricanes, a minimum of $500/maximum 10% of policy limits deductible applies.
Term
An insured with a commercial property form, which covers a building for $500,000 and personal property for $150,000, purchases a building and its furniture at another location. What coverage, if any, is provided by the policy for this new purchase?
Definition
$250,000 on the building and $100,000 on its contents is automatically covered for a 30-day period.
Term
Commercial property valuations are always actual cash value except replacement costsettlement is offered if the building loss is equal to or less than which limit?
Definition
$2500
Term
Which type of structure would not qualify for coverage under Farm Coverage 'G' Other Farm Structures?
Definition
Living Quarters for season farm workers is not covered G other farm structures
