Competition = Coverage + Innovation + Package + Price
1) Householder’s a) Perils: Named
b) Coverage: Personal property.
c) Territory: Principal/Seasonal Residence and worldwide.
d) Extensions: Others (Temporarily Removed, A.L.E.).
e) Rating: Graded and flat rates per section.
2) Composite Dwelling a) Perils: Named or all risk.
b) Property: Building, personal property, personal liability.
c) Rating: Package discounts, Credit Existing Insurance.
3) Tenant Composite a) Perils: Named or all risk.
b) Property: Personal property, personal liability.
HOMEOWNER’S FORMS
QUALITY RISKS: 1-2 family dwellings, principal residence year round.
FORMS: COMPREHENSIVE BROAD BASIC
Buildings All Risks All Risks Named Perils
Contents All Risks Named Perils Named Perils
INSURING TO VALUE Determining the appropriate limits for each item:
BUILDINGS Reconstruction cost (Boeckh calculator).
CONTENTS Replacement value of contents on / away from premises (Inventory).
GROSS LIMIT Adding limits for each section = Total exposure insurer faces:
A) Building Maximum limit. $100,000 B) Detached Structures 10% of building limit. $ 10,000
C) Personal Property 75% of building limit. $ 75,000
D) A.L.E. 20% of building limit. $ 20,000
$205,000
PREMIUM Per 1,000 coverage, includes buildings, contents, A.L.E., liability.
POLICY COVERAGES
A) DWELLING BUILDING
1) Building. 3) Building supplies.
2) Attached structures. 4) Outdoor equipment.
EXTENSIONS 1) Fixtures and fittings temporarily removed - 10 %.
2) Outdoor plants, trees and shrubs (X Lawns) - 5 % or limit.
B) DETACHED STRUCTURES
Average Distribution Clause not applied.
C) PERSONAL PROPERTY
1) On Premises a) Owned or used by the insured.
b) Of others - X Roomers/Boarders.
2) Away From Premises a) Worldwide - X Other owned.
b) Warehouse - 30 days, theft only.
c) Residence employee.
3) Of Students At college/university.
EXCLUSIONS 1) Motorized vehicles (X Yard Maintenance/Wheelchairs).
2) Camper units, trailers truck caps or their equipment.
3) Aircraft or their equipment.
D) ADDITIONAL LIVING EXPENSE
Insured may not be able to live in the dwelling for an extend period due to:
1) Insured Peril Fire or water damage.
2) Civil Authority Neighboring premises damaged by insured peril.
3) Mass Evacuation Civil authority orders for community safety.
EXCLUSION Cancellation of lease or rental agreement.
EXTENSIONS OF COVERAGE
1) Debris Removal Insured peril, if over policy limit additional 5 %.
2) Property Removed Protect from further loss or damage - 30 Days.
3) Moving Property in transit between residences - 30 Days.
4) Fire Dept. Charges Save dwelling/ property from further loss or damage.
5) Change of Temperature Insured peril causes power interruption (Freezer).
6) Freezer Food Insured peril or mechanical breakdown - $2,000.
7) Lock Replacement Theft of principal residence keys - $500.
8) Tear Out Removing parts of dwelling to repair water damage.
9) Arson Conviction Reward Supports loss prevention in community - $1,000.
10) Cards / Money Credit or debit, forgery ($1,000), counterfeit ($200).
11) Inflation Protection Automatic increase of dwelling limit at renewal (4 %).
AGREEMENT Between insurer and insured - Indemnity / Limitation Clauses.
DEFINITIONS Civil Authority: Specific to Section D.
Dwelling: Occupied in whole or in part by insured.
Insured: Add students.
Residence Employee: Duties related to maintenance or use of premises.
SPECIAL LIMITS 1) Jewelry $2,000 8) Student’s Property $2,500
2) Coins $ 200 9) Money / Bullion $ 200
3) Stamps $1,000 10) Garden Tractors $5,000
4) Sports Cards $1,000 11) Watercraft $1,000
5) Bicycles (Each) $ 500 12) Computer Software $2,500
6) Business Property $2,000 13) Spare Auto Parts $1,000
7) Securities $2,000
NOTICE TO AUTHORITIES
Burglary, robbery, theft or attempted theft added.
BASIS OF CLAIM PAYMENT
1) Replacement Cost 100 % coinsurance requirement.
2) Guaranteed Replacement Cost Dwelling - 100 % coinsurance.
- Insurer > renovations (90 Days).
Property - Cash settlement = A.C.V.
X Antiques / Collectibles.
X Not working.
X Not used for original purpose.
INSURED PERILS Differ from the Basic Residential policy as follows:
1) Basic a) Glass Breakage + Building doors and windows.
X Vacancy / Ornaments.
b) Theft / Damage By X Change in ownership / construction.
c) Transportation + Fixtures and fittings temporarily removed.
d) Windstorm or Hail + Fences.
2) Broad a) Impact By Vehicle + Owned/operated by insured/employees.
b) Theft / Damage By + Building / property damage.
X Dwellings other than principal residence.
X Member of household.
X Animals / birds / fish.
c) Transportation + Property in transit by insured/carrier.
+ Replacement Cost coverage.
X In vacation trailer / watercraft.
d) Windstorm or Hail + Building interior.
X Exterior antenna / Collapse.
EXCLUSIONS 1) Sports equipment. 5) Wear and tear.
2) Animals, birds, fish. 6) Pollution.
3) Scratching, chipping. 7) Application of heat.
4) Theft by tenants. 8) Water damage.
3) Comprehensive Defined by additional exclusions:
a) Sporting Equipment Loss or damage caused by use.
b) Animal, Birds or Fish Specified Perils only.
c) Scratches, Chips Fragile or brittle articles.
d) Antennae Weather damage (Hail/Ice).
e) Wear and Tear Responsibility of insured.
f) Faulty Materials/Work Responsibility of contractor.
g) Settling Buildings Includes building glass.
h) Property Worked On Processes.
i) Pests Birds, insects or wild animals.
j) Smoke Smudging or industrial operations.
k) Theft - Construction Supplies related to same.
l) Theft - Tenants Insured’s responsibility.
m) Vacancy Glass, vandalism.
n) Environmental Hazard Insured’s responsibility (Pollution).
o) Change of Ownership Result of dishonesty.
SPECIFIED PERILS Apply to specific property (Animals) in all forms:
1) Fire 7) Riot
2) Lightning 8) Vandalism or Malicious Acts
3) Explosion 9) Water Damage
4) Smoke 10) Windstorm or Hail
5) Falling Object 11) Transportation
6) Impact by Aircraft or Land Vehicle
COMMON EXCLUSIONS Included in all policy forms:
1) Business / Farm Dwellings 8) Radioactive Material
2) Property at Exhibition 9) War
3) Property Illegally Acquired/Kept 10) Intentional or Criminal Acts of Insured
4) Evidence of Debt / Title 11) Application of Heat
5) Property Lawfully Confiscated 12) Earth Movement
6) Vacancy / Unoccupancy 13) Pollution
7) Nuclear Incident
HOME BUSINESSES
1) Gaps between commercial and personal insurances.
2) Limitations for premises/property used in business.
3) No coverage available for manufacturing or professional risks.
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