Post on 17-Dec-2015
Fire or LightningFire or Lightning
• Direct physical loss caused by:• Flame• Smoke• Soot
• Damage caused by firefighters
Windstorm or HailWindstorm or Hail
• Policy does not define windstorm
• Force of wind or hail causes opening in structure
• Exclusions
AircraftAircraft
• Definition• Includes self-propelled
missiles and spacecraft• What’s covered
• Direct physical contact not required
VehiclesVehicles
• Covers damage caused by vehicles
• Exclusion• Damage caused by vehicle
owned or operated by occupant of insured premises
Vandalism or Malicious MischiefVandalism or Malicious Mischief
• Restrictions on vacant buildings• Intentional acts excluded?• Definition of malicious mischief
• Legal vs common meaning
TheftTheft
Exclusions• Committed by insured• Dwelling under construction• Rented to someone who is not
an insured• Secondary residence
• College students
Falling ObjectsFalling Objects
• Damage caused by falling object
• Actual object not covered• Damage to roof or outside wall
Weight of Ice, Snow, or SleetWeight of Ice, Snow, or Sleet
• What’s covered• Exclusions
• Awnings• Fences• Patios
Accidental Discharge or Overflow of WaterAccidental Discharge or Overflow of Water
• What’s covered• Hidden mold, fungus, wood
rot• Exclusions
• Loss to system from which water escaped
• Surface water
Sudden & Accidental Tearing ApartSudden & Accidental Tearing Apart
• Refers to heating systems, air conditioning or automatic sprinkler system (for fire protection.)
FreezingFreezing
• Plumbing, heating, air conditioning, automatic fire protective sprinkler system or household appliance.
• Reasonable care
Sudden and Accidental Damage – Artificially Generated CurrentSudden and Accidental Damage – Artificially Generated Current
• Definition of artificially generated
• Exclusions
Volcanic EruptionVolcanic Eruption
• Developed in response to Mount St. Helens eruption.
• Coverage for airborne shock waves, volcanic ash, lava flow
• Excludes land shock waves, earthquakes, tremors
• Debris removal
TopicsTopics
In this section we will cover these main topics:
1.Why endorsements are used
2.Common endorsements to the Homeowners Policy
Insuring a Personal TrustInsuring a Personal Trust
• “You” and “Your”• Endorsement HO 05 43• AAIS personal trust
endorsements
Relative in Assisted Living FacilityRelative in Assisted Living Facility
• Specific to named relative and facility
• Coverage limited for certain items
• Additional living expenses
Additional Interest or InsuredAdditional Interest or Insured
• Endorsements for non-mortgagee
• Additional interest vs. additional insured
• Premises liability coverage
Dwelling Under Construction – Theft Dwelling Under Construction – Theft
• Only AAIS form allows coverage
• Specific dollar amount of coverage
Unit Owners Special CoverageUnit Owners Special Coverage
• Named perils basis• Endorsement for open perils
coverage
Water Back Up and Sump Discharge or OverflowWater Back Up and Sump Discharge or Overflow
• Up to $5,000 provided• Deductible• Loss due to mechanical
breakdown of sump pump covered, but loss to pump itself is not.
Increased Limit – Other StructuresIncreased Limit – Other Structures
• Other/related private structures coverage may be increased
• Endorsements do not increase coverage B
Other Structures Away from PremisesOther Structures Away from Premises
Structure may be insured in two ways:
• Other structures away from premises endorsement
• Schedule individual structures through Specific Structures endorsement
Computer CoverageComputer Coverage
• Computer hardware, software, operating systems, networks
• Electronic parts
Open Perils Coverage for Personal PropertyOpen Perils Coverage for Personal Property
• Tenant may attach to policy• Does not cover breakage
resulting from earthquake
Scheduling Personal PropertyScheduling Personal Property
• Clients need to be educated!• Can broaden scope of coverage
to an open perils basis:• Jewelry• Furs• Cameras• Musical Instruments• Fine Art
Scheduling Personal Property Scheduling Personal Property
• Agreed value basis• Coverage C exclusion• Settled losses• Coverage for fine arts
Personal PropertyReplacement CostPersonal PropertyReplacement Cost
• Loss settlement provisions for:• Personal property• Awnings• Carpeting• Household appliances• Outdoor equipment
• Recovery limited to smallest of five defined amounts
Personal Property Replacement CostPersonal Property Replacement Cost
• Four categories of property not eligible for replacement cost coverage
• Losses with replacement values of more than $500
Home Day CareHome Day Care
• Subordinate to homeowners forms primary coverage
• Exclusions and policy limits
Additional Residence – Rented to OthersAdditional Residence – Rented to Others
• Rental premises can be covered under homeowners policy
• Liability coverage for other locations usually indicated on declarations
Farmers LiabilityFarmers Liability
• Liability arising out of incidental farming activities
• Liability arising away from insured premises
Personal InjuriesPersonal Injuries
• Extends coverage for injuries arising out of:• False arrest• Wrongful eviction• Invasion of privacy• Malicious prosecution• Libel, slander, defamation
• Exclusions
Identity TheftIdentity Theft
• Respond to costs incurred with identity fraud
• Pays reasonable and necessary attorney fees
• Loss of earnings