Study 8 - Other Package Policies - C12

MOBILE HOME INSURANCE


MOBILE HOME        1) Construction        Factory built on a chassis.
                                    2) Mobility                  Towed to location (Park - rented lot).                   
                                    3) Foundation           Poured concrete or concrete block.
                                    4) Doublewide          Two similar units installed back to back.
                                    5) Skirting                  Cover between underside of unit and ground.
                                    6) Tie downs             Straps from unit fixed to foundation or ground (Wind).
                                    7) Built ins                 Appliances, equipment or furniture.

            Disadvantages         1) Susceptible to major fire damage (Frame).
                                                2) Susceptible to wind damage (Lightweight).
                                                3) Lower durability = quicker depreciation.


POLICY FORM        Includes standard homeowner elements and adds to dwelling building:

            1) Attached equipment / furniture             Built in appliances.
                       
            2) Emergency Removal Expense             Cost of moving unit to protect from insured                                                                                            peril (Forest Fire) up to 5 % of limit.
                       
            3) Exclusions                        a) Damage caused by moving unless emergency (+ E.R.E.).
                                                b) Conversion, embezzlement or secretion by possessors.
                                                           

TENANT INSURANCE



TENANTS                Need coverage for personal property and liability for occupancy as:            
                                   
                                                1) Renters                 Rented dwellings.
                                                2) Employees           Private dwellings owned by employers (Estate).
                                                3) Proprietors            Commercial buildings owned by company.


POLICY FORM        Includes standard homeowner elements except dwelling coverage, their                                       exclusions, and adds:

            1) Improvements or Betterments               Added to the dwelling and paid for by insured.

            2) Dwelling Damage                                   $500 limit for theft/vehicle damage by insured.




COOPERATIVES AND CONDOMINIUMS



COOPERATIVES    1) Members share building ownership by purchasing a share.
                                    2) Share entitles member to use a building unit.
                                    3) Share capital pays maintenance expense, mortgage, taxes and insurance.
                                    4) Members need Tenant insurance.


CONDOMINIUMS    1) Individual unit owners jointly own building/common elements.
                                    2) Units include walls, floor and ceiling.
                                    3) Mortgages must be registered with corporation.
                                   
            CORPORATION      1) General guidelines established under provincial law.
                                                2) Elected board comprised of unit owners.
                                                3) Manages building and assets.
                                                4) Creates and enforces by-laws.
                                                5) Arrange building and liability insurance.


POLICY FORM        Includes standard homeowner elements and adds:

            a) Definitions                                                            1) Condominium corporation.
                                                                                    2) Unit replaces dwelling.

            b) Exclusions                                                            Glass breakage.

            c) Basis of Claim Payment                                    1) Less recovery from building insurance.
                                                                                    2) Includes improvements and betterments.

            U1) Improvements / Betterments              Added to the dwelling and paid for by insured.

            U2) Loss Assessment                                 Each owner pays their share of a deficiency in the                                                                              insurance for common elements due to:

                                                                                                a) Underinsurance. c) Excluded peril.
                                                                                                b) Coinsurance.       d) Breach of condition.

                                                                                    CONDITIONS           1) Valid by Corporation rules.
                                                                                                                        2) Direct loss by insured peril.

U3) Unit Additional Protection                   Pays in the event the building policy is inadequate for their individual unit.

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