real property insurance chapter 24. insured: makes pmts premium: the payment insurer: the company...
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Real Property InsuranceChapter
24
Insured: Makes pmts Premium: The payment Insurer: The company responsible Endorcement:
Coverage for separate perils Rider or attachment modifies basic policy
Public liability (to others) Lenders require insurance – Often escrow Insured can cancel anytime/Insurer must give notice
Premium is pro-rated & refunds made
Some Terms & Stipulations
Fire, wind, water, vandalism, etc. Fire=Single most important cause of damage
Loss of use Expenses resulting from loss of use Liability from negligence
bodily injury damage medical
Inability to make mortgage payments
Risks of Owning Property
Direct losses: Replace or repair Indirect loss
Living expenses, loss of business income Liability Insurance
$ Homeowner’s Policy: Fire, liability & medical HO-3L 20K + Other losses based on % Replacement Cost Endorsement: Personal Articles Floater: Schedule-Specific items
Home Buyer’s Insurance: Builders warrant for 1 yr + & HOW after that
Property Losses
Renting (HO-4) /Condos (HO-6) Dwelling=Landlord
Rental policy does not cover building damage Personal property
Furniture, clothing, collectibles, etc Liability
Depends on deductibles Not automatic –
Condos: Association buys insurance for common areas Owners buy insurance for personal property
Property Losses
How far you are from hydrant & station Urban < rural
Existence of fire places of various types Type of construction
Wood>Brick Discounts: Alarms, sprinklers, deductibles Coinsurance Medical payments Endosements: Inflation, worker’s comp
Baby citers, cleaners
Discounts & Additions
Earthquakes: Not covered - Need endorsement & Expensive!
Umbrella: Disastrous liability Up to $1,000,000 covers auto & HO for $100+
Flood: No private insurance Nat’l Flood Insurance Act of 68 Govt flood insurance
Mandatory for federally- regulated banks & thrifts
Earthquake, umbrella & flood
Mortgage life: Decreasing term Never required Can be covered w/ other policy
Business Owner Policy Building’s: Replacement Personal property: Replacement Additional coverage Liability: Board of Directors
Mortgage life & Bus Insurance
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