Real Property InsuranceChapter

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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