2 Hour Webcast FAIA 1. Per DFS requirements, you'll need to sign an affidavit for us to process your...

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Complete Coverage SeriesHomeowners Section I

Part I2 Hour Webcast

FAIA

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Per DFS requirements, you'll need to sign an affidavit for us to process your CE.

Please fax the affidavit to 850-668-2852 OR mail it to PO Box 12129, Tallahassee, FL, 32317

OR scan it to a .pdf file and email it to [email protected]. Electronic Submission.

Be sure to complete all the required information and sign it below. The affidavit is located on the FAIA website, www.faia.com, under Education.

We need this form to be sent within three (3) business

days.

Homeowners Section I Part I

mailto:[email protected]

http://www.faia.com/

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Overview of ISO Homeowners Program

◦ HO-3 Special◦ HO-4 Renter◦ HO-5 Open Perils◦ HO-6 Condo◦ HO-8 Modified


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Before it’s said and done we will have covered:

Section I Property Coverages Section I Perils Insured Against Section I Exclusions Section I Conditions Section II Liability Coverages Section II Exclusions Section II Additional Coverages Section II Conditions Section I and II Conditions Endorsements


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Homeowners Section I Part I 11. "Residence premises"

means:

a. The one family dwelling where you reside;b. The two, three or four family dwelling where you reside in at least one of the family units;orc. That part of any other building where you reside; and which is shown as the "residence premises"in the Declarations."Residence premises" also includes other structures and grounds at that location.

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It includes not one but up to four family dwelling units where the named insured must reside in one.


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Coverage A Dwelling includes permanently attached items such as:

plumbing heating, cooking, and cooling equipment tile Cabinets lighting fixtures Awnings security alarm Intercom central vacuum system fences patios and indoor hot tubs or pools.


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2. We do not cover land, including land on which the dwelling is located.


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2. We do not cover land, including land on which the dwelling is located.

69O-167.009 Mortgage Fire Insurance Requirements Limited

No mortgage lender shall, in connection with any application for a mortgage loan in this state which is secured by a mortgage on residential real estate located in this state, require any prospective mortgagor to obtain by purchase or otherwise a fire insurance policy in excess of the replacement value of the covered premises as a condition for granting such a mortgage.


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Coverage B insures other structures on the residence premises set aside from the

dwelling by clear space.

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We cover other structures on the "residence premises" set apart from the dwelling by clear space. This includes structures connected tothe dwelling by only a fence, utility line, or similar connection.

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Coverage B Exclusions

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“Business” means:

A trade, profession or occupation engaged in on a full-time, part-time or occasional basis;

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5. "Insured" means:

a. You and residents of your household whoare:Your relatives; or(2) Other persons under the age of 21 and in your care or the care of a resident of your household who is your relative;b. A student enrolled in school full-time, as defined by the school, who was a resident of your household before moving out to attend school, provided the student is under the age of:

(1)24 and your relative; or

(2) 21 and in your care or the care of aresident of your household who is yourrelative; or


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An unnamed spouse has insured status (“you”) so long as he or she is a resident of the named insured’s household.

If an unnamed spouse leaves, without intent to return, that person has no status whatever under the policy.


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With the dwelling having a stated limit in the declarations, Coverage B has a limit of 10% of the Coverage A limit. This 10% limit applies collectively to all other structures at the residence premises. The 10% is in addition to coverage A limit.

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10% forusually

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b. Self-storage FacilitiesOur limit of liability for personal propertyowned or used by an "insured" and locatedin a self-storage facility is 10% of the limitof liability for Coverage C, or $1,000,whichever is greater. However, thislimitation does not apply to personalproperty:(1) Moved from the "residence premises"because it is:(a) Being repaired, renovated or rebuilt;and(b) Not fit to live in or store property in;or(2) Usually located in an "insured's"residence, other than the "residencepremises".

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10% in storage unit would not apply in cases such as:

Personal property is located in a warehouse which is not a self-storage facility.

Personal property is in a self-storage facility because the main dwelling had suffered a fire loss and property was removed during the repair process.

A college student in another city stores his/her property in a self-storage facility over the summer.

.


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10% in storage unit would not apply in cases such as:

Personal property is in a moving truck. Personal property is stored in a neighbor's

garage.

Personal property is in a beach house or hotel room for a week.


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Review Time


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1. What doesn’t the homeowners policy cover that shocks a lot of bankers?

A. WindB. LandC. MoneyD. Trees


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1. What doesn’t the homeowners policy cover that shocks a lot of bankers?

A. WindB. LandC. MoneyD. Trees


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2. “Residence premises” can include up to how many family dwelling units if you reside in at least one.

A. 3B. 2C. 4D. 1


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2. “Residence premises” can include up to how many family dwelling units if you reside in at least one.

A. 3B. 2C. 4D. 1


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3. Coverage B-Other Structures usually has a limit of ______% of the Coverage A Limit.

A. 30%B. 20%C. 40%D. 10%


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3. Coverage B-Other Structures usually has a limit of ______% of the Coverage A Limit.

A. 30%B. 20%C. 40%D. 10%


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Special Limits

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a. $200 on money, bank notes, bullion, gold other than goldware, silver other than silverware, platinum other than platiumware, coins, medals, scrip, stored value cards and smart cards.

The limit for items in this category may be increased with endorsement HO 04 65 (or HO 04 66) from $200 up to $1,000 in increments of $100.


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b. $1,500 on securities, accounts, deeds, evidences of debt, letter of credit, notes other than bank notes, manuscripts, personal records, passports, tickets and stamps. This dollar limit applies to these categories regardless of the medium (such as paper or computer software) on which the material exists

The limit for items in this category may be increased with endorsement HO 04 65 (or HO 04 66) from $1,500 up to $2,500 in increments of $100.


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c. $1,500 on watercraft of all types, including their trailers, furnishings, equipment and outboard engines or motors.

d. $1,500 on trailers or semitrailers not used with watercraft of all type.


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e. $1,500 for loss by theft of jewelry, watches, furs, precious and semi-precious stones.

The theft limit for property in this category may be increased with endorsement HO 04 65 (or HO 04 66) from $1,500 up to $5,000, but the limit remains $1,000 per article.


http://www.faia.com/Core/ContentManager/uploads/FIRL/ISO%20Policies/Personal/Homeowners/HO%2004%2065%20Coverage%20C%20Increased%20Special%20Limits%20of%20Liability.pdf

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f. $2,500 for loss by theft of firearms and related equipment.

The theft limit for firearms may be increased from $2,500 up to $6,500 with endorsement HO 04 65 (or HO 04 66).


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g. $2,500 for loss by theft of silverware, silver-plated ware, goldware, gold-plated ware, platinumware, platinum-plated ware and pewterware. This includes flatware, hollowware, tea sets, trays and trophies made of or including silver, gold or pewter.

The theft limit for property in g. may be increased from $2,500 up to $10,000 with endorsement HO 04 65 (or HO 04 66).


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h. $2,500 on property, on the "residence premises," used primarily for "business" purposes.

For item h., the limit for business property on premises may be increased up to $10,000 with endorsement HO 04 12.


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i. $1,500 on property, away from the"residence premises", used primarily for"business" purposes. However, this limitdoes not apply to antennas, tapes, wires,records, disks or other media that are:(1) Used with electronic equipment thatreproduces, receives or transmits audio,visual or data signals; and(2) In or upon a "motor vehicle".For item h., the limit for business property on premises may be increased up to $10,000 with endorsement HO 04 12.


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j. $1,500 on portable electronic equipmentthat:(1) Reproduces, receives or transmitsaudio, visual or data signals;(2) Is designed to be operated by morethan one power source, one of which isa "motor vehicle's" electrical system;and(3) Is in or upon a "motor vehicle".


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k. $250 for antennas, tapes, wires, records,disks or other media that are:(1) Used with electronic equipment thatreproduces, receives or transmits audio,visual or data signals; and(2) In or upon a "motor vehicle".


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“Motor Vehicle”

a. A self-propelled land or amphibious vehicle; or

b. Any trailer or semitrailer which is being carried on, towed by or hitched for towing by a vehicle described in a. above.


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How Deductibles Apply to the Special Limits

Coverage C- $75,000 $250 Deductible $2,500 jewelry, $500 cash, $1,000 other personal

property totaling $4,000 According to Special Limits only $1,500 can be

collected for jewelry and $200 for cash. This leaves $1,300 EXCESS Since this loss exceeds the limits, the $250 can be

applied against the excess and doesn’t reduce the special limits amount.


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Property Not Covered


Property Not Covered

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4. Property Not CoveredWe do not cover:a. Articles separately described and specifically insured, regardless of the limit forwhich they are insured, in this or other insurance;

Articles means specific, identifiable objects, each described separately and insured individually.


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b. Animals, birds or fish;


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http://www.harvardfilmarchive.org/images/vw_car_drive.jpg

http://www.harvardfilmarchive.org/images/vw_car_drive.jpg

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http://www.rc-airplanes-simplified.com/image-files/model-airplane-covering-1.jpg

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f. Property of roomers, boarders and othertenants, except property of roomers andboarders related to an "insured“;

g. Property in an apartment regularly rented or held for rental to others by an "insured", except as provided in E.10. Landlord's Furnishings under Section I – Property Coverages;

h. Property rented or held for rental to others off the "residence premises";


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i. "Business" data, including such data

stored in: (1) Books of account, drawings or other

paper records; or (2) Computers and related equipment. We do cover the cost of blank recording or storage media, and of prerecorded computer programs available on the retail market;


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j. Credit cards, electronic fund transfer cardsor access devices used solely for deposit,withdrawal or transfer of funds except asprovided in E.6. Credit Card, ElectronicFund Transfer Card Or Access Device,Forgery And Counterfeit Money under Section I – Property Coverages; or


http://images.google.com/imgres?imgurl=http://www.csamky.com/mbr/Portals/0/CreditCardLogos.jpg&imgrefurl=http://www.csamky.com/mbr/Home/tabid/38/Default.aspx&usg=__NARR2QgbjDPR2AjhmSQzROpmJUk=&h=349&w=480&sz=59&hl=en&start=7&um=1&itbs=1&tbnid=Ua2wagWf2JQ9zM:&tbnh=94&tbnw=129&prev=/images?q=credit+card&um=1&hl=en&safe=active&rls=com.microsoft:en-us:ie-searchbox&rlz=1i7ggll_en&ndsp=20&tbs=isch:1

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k. Water or steam.


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Coverage D applies to the insured exposure to a

financial loss, apart from the property damage itself, if the insured cannot live in the residence premise due

to damage.

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Coverage D applies only if the damage is the result of a loss that is covered under Section I.

Coverage D does not apply if:

1. damage to property simply prevents access to the residence (bridge down)2. damaged premises is not the residence premises (rented vacation

Homeowners Section Part I

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30%

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1. Additional Living ExpenseIf a loss covered under Section I makes thatpart of the "residence premises" where you residenot fit to live in, we cover any necessaryincrease in living expenses incurred by you sothat your household can maintain its normalstandard of living.

Payment will be for the shortest time requiredto repair or replace the damage or, if you permanentlyrelocate, the shortest time requiredfor your household to settle elsewhere.


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2. Fair Rental ValueIf a loss covered under Section I makes thatpart of the "residence premises" rented to othersor held for rental by you not fit to live in, wecover the fair rental value of such premisesless any expenses that do not continue while itis not fit to live in.

Payment will be for the shortest time requiredto repair or replace such premises.


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3. Civil Authority Prohibits UseIf a civil authority prohibits you from use of the "residence premises" as a result of direct damage to neighboring premises by a Peril Insured Against, we cover the loss as provided in 1.Additional Living Expense and 2. Fair Rental Value above for no more than two weeks.


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4. Loss Or Expense Not CoveredWe do not cover loss or expense due to cancellation of a lease or agreement.The periods of time under 1. Additional Living Expense, 2. Fair Rental Value and 3. Civil Authority Prohibits Use above are not limited by expiration of this policy.


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There are 12 additional

coverages.

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1. Debris Removal a. We will pay your reasonable expense for

the removal of:(1) Debris of covered property if a PerilInsured Against that applies to the damagedproperty causes the loss; or(2) Ash, dust or particles from a volcaniceruption that has caused direct loss to abuilding or property contained in abuilding.This expense is included in the limit of liabilitythat applies to the damaged property.If the amount to be paid for the actual damageto the property plus the debris removalexpense is more than the limit of liability forthe damaged property, an additional 5% ofthat limit is available for such expense.


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Here are the key points to remember about this section:

1. Removal coverage applies only to the debris of covered property.

2. If there is no damage to covered property or the cause of loss is not a peril insured against, debris removal does not apply.

3. Coverage is not restricted to debris that is located on the residence premises.


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If a tree is blown down by wind or hail it is not covered and a tree owned by the neighbor is not covered property of the insured but this section makes some exceptions up to 1,000.


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The tree has to either damage a covered structure or must block a driveway or ramp designed to

assist the handicapped.

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2. Reasonable Repairsa. We will pay the reasonable cost incurred byyou for the necessary measures takensolely to protect covered property that isdamaged by a Peril Insured Against fromfurther damage. b. If the measures taken involve repair toother damaged property, we will only pay ifthat property is covered under this policyand the damage is caused by a Peril InsuredAgainst. This coverage does not:(1) Increase the limit of liability that appliesto the covered property; or(2) Relieve you of your duties, in case of aloss to covered property, described inB.4. under Section I – Conditions.


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This is a “post loss” benefit.


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This is the part of the policy where agents heard the

following:

“I need 4 new pine trees. They were all blown down during Hurricane (Insert any one). “

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The aggregate limit is 5% of the Coverage A limit provided as an additional amount of insurance with sublimit of $500 for loss to any one tree, shrub or plant.


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4. Fire Department Service ChargeWe will pay up to $500 for your liability assumedby contract or agreement for fire departmentcharges incurred when the fire departmentis called to save or protect coveredproperty from a Peril Insured Against. We donot cover fire department service charges if theproperty is located within the limits of the city,municipality or protection district furnishing thefire department response.This coverage is additional insurance. No deductibleapplies to this coverage.


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5. Property RemovedWe insure covered property against direct loss from any cause while being removed from a premises endangered by a Peril Insured Against and for no more than 30 days while removed.This coverage does not change the limit of liability that applies to the property being removed.


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Up to 30 days.


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It is not required that the card have been stolen; any

basis on which it is subjected to unauthorized use is

covered.

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$1,000

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Covered Perils: Example #1: Sue has an HO-3 policy and is

assessed for fire damage to the HOA clubhouse. Since fire is a covered peril under her HO-3 her policy responds less deductible.

Example #2: Sue is assessed for flood damage to the same clubhouse. Since flood is not a covered peril under her HO-3 there is no coverage.


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Assessments

Example, if a clubhouse were damaged by fire and the HOA made an initial assessment of $3,500 the homeowners policy pays the $1,000 limit (assuming it has not been increased). If, three months later, another assessment is made for the same fire loss there is not an additional $1,000 available for another assessment.


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"an abrupt falling down or caving in, with the result that

the building or part of the building cannot be occupied

for its intended use."

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Additional wording to ISO policy :

“of a building or any part of a building”

Collapse

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damage to, or by, glass is actually a result, rather

than a cause.

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10. Landlord's FurnishingsWe will pay up to $2,500 for your appliances,carpeting and other household furnishings, ineach apartment on the "residence premises"regularly rented or held for rental to others byan "insured", for loss caused by a Peril InsuredAgainst in Coverage C, other than Theft.This limit is the most we will pay in any oneloss regardless of the number of appliances,carpeting or other household furnishings involvedin the loss.This coverage does not increase the limit of liabilityapplying to the damaged property.


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The insured must reside in one unit; however, the others may be rented.


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Gurn’s O&L problems:

$200,000 house sustained $50,000 of damage in the fire.

$50,000 would put the house back just as it was, but contractor says it will take an additional $25,000 to bring the house up to code.

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12. Grave MarkersWe will pay up to $5,000 for grave markers, including mausoleums, on or away from the"residence premises" for loss caused by a PerilInsured Against under Coverage C.This coverage does not increase the limits ofliability that apply to the damaged coveredproperty.


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Review Time


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1. The 2011 ISO Homeowners gives how much coverage for personal property located in a storage unit?

A. 50%B. 100%C. 10%D. 30%


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1. The 2011 ISO Homeowners gives how much coverage for personal property located in a storage unit?

A. 50%B. 100%C. 10%D. 30%


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2. How much coverage is given on securities, accounts, deeds ect?

A. 500B. 1500C. 2500D. 0


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2. How much coverage is given on securities, accounts, deeds ect?

A. 500B. 1500C. 2500D. 0


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3. Which of the following is not an Additional Coverage?

A. Trees, shrubs, and other plantsB. Credit CardC. BoatsD. Fire Department


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3. Which of the following is not an Additional Coverage?

A. Trees, shrubs, and other plantsB. Credit CardC. BoatsD. Fire Department


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The state of Florida has taken a very strong position on the issue of unauthorized entities. An unauthorized entity is an insurance company that is not licensed by the Florida department of financial services. Agents and brokers have responsibility for conducting reasonable research to ensure that they are not writing policies or placing business with unauthorized entities. Lack of careful screening can result in significant financial loss to Florida residents due to unpaid claims and/or theft of premiums.

UNAUTHORIZED ENTITIES

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Agents may be held liable when representing these unauthorized entities. It is the agents and brokers responsibility to give fair and accurate information regarding the companies they represent. Any question about the authorized status of a company can be checked by calling the Florida department of financial services at 877-693-5236 or for out of state agents, 800-413-3089 .We urge all agents and brokers to adhere to this admonition.


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For more information on unauthorized entities go to FAIA’s website at www.faia.com and under the Education section you will find a handout that you can download.



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Per DFS requirements, you'll need to sign an affidavit for us to process your CE.

Please fax the affidavit to 850-668-2852 OR mail it to PO Box 12129, Tallahassee, FL, 32317

OR scan it to a .pdf file and email it to [email protected]. Electronic Submission.

Be sure to complete all the required information and sign it below. The affidavit is located on the FAIA website, www.faia.com, under Education.

We need this form to be sent within three (3) business

days.

Homeowners Section I Part 1



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Thanks for attending!

Jeff [email protected]

Homeowners Section I Part 1


2 Hour Webcast FAIA 1. Per DFS requirements, you'll need to sign an affidavit for us to process your...

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