Chapter 10

Personal Property and Liability Insurance

Chapter 10: Personal Property and Liability Insurance

Personal Property and Liability Insurance

Homeowners (HO) insurance: basic coverages Section I coverages

Coverage Coverage Coverage Coverage

A: Dwelling B: Other structures C: Personal property D: Loss of use

Chapter 10: Personal Property and Liability Insurance

2001, Dalton Publications, LLC

Personal Property and Liability Insurance

(contd)

Section I exclusions

Movement of the ground Ordinance or law Damage from water War of nuclear hazards Power failure Intentional acts Neglect
2001, Dalton Publications, LLC

Chapter 10: Personal Property and Liability Insurance

Section II Coverages

Coverage E: Personal liability Coverage F: Medical payments to others Medical payment exclusions to Coverages E and F

Exclusions to Coverage E only Exclusions to Coverage F only

Chapter 10: Personal Property and Liability Insurance

2001, Dalton Publications, LLC

Homeowners Insurance: Basic Forms Available

HO-1 HO-2 HO-3 HO-4 HO-6 HO-8

Basic form Broad form Special form Contents broad form (tenants) Unit owners form (condos) Modified form

Chapter 10: Personal Property and Liability Insurance

2001, Dalton Publications, LLC

Homeowners Insurance: Available Endorsements

Replacement cost for personal property All-risks coverage for personal property (open perils) Inflation protection Earthquake insurance Sewer backup coverage Personal injury Business pursuits Watercraft

Chapter 10: Personal Property and Liability Insurance

2001, Dalton Publications, LLC

Homeowners Insurance Contractual Conditions

Section I conditions Duties after a loss:

1. Give notice immediately to insurance company or agent. 2. Protect the property from any further damage. 3. Prepare an inventory of loss to the building and personal property. 4. File written proof of the loss.
2001, Dalton Publications, LLC

Chapter 10: Personal Property and Liability Insurance

Homeowners Insurance Contractual Conditions

(contd)

Loss settlement

This condition specifies how certain property items will be valued (ACV basis or a replacement cost basis). The coinsurance provision of the policy is also contained in this clause.

Chapter 10: Personal Property and Liability Insurance

2001, Dalton Publications, LLC

Homeowners Insurance Contractual Conditions

(contd)

Section II conditions

Limit of liability Duties after a loss Duties of an injured person Coverage F Payment of claim Coverage F Bankruptcy of an insured

Chapter 10: Personal Property and Liability Insurance

2001, Dalton Publications, LLC

Homeowners Insurance Contractual Conditions

(contd)

Sections I and II conditions

Concealment or fraud Cancellation and non-renewal Assignment Subrogation

Chapter 10: Personal Property and Liability Insurance

2001, Dalton Publications, LLC

Personal Auto Policy (PAP) Coverages

Eligible autos four-wheel passenger automobiles, pickup trucks, and vans owned by individuals or leased for at least six months. Important policy definitions

your covered auto Parts A through F

Chapter 10: Personal Property and Liability Insurance

2001, Dalton Publications, LLC

PAP Coverages Policy Definitions

(contd)

Part Part Part Part Part Part

A Liability coverage B Medical payments C Uninsured motorists D Damage to your auto E Duties after an accident or loss F General provisions

Chapter 10: Personal Property and Liability Insurance

2001, Dalton Publications, LLC

Personal Liability Umbrella Policy (PUP)

Purpose

To provide a catastrophic layer of liability coverage on top of the individuals homeowners and automobile insurance policies Standard coverage amount - $1 million or more

Chapter 10: Personal Property and Liability Insurance

2001, Dalton Publications, LLC

Business and Professional Use of Property and Liability Insurance

The Commercial Package Policy (CPP) Inland Marine Policies The Business Owners Policy (BOP) Business Liability Insurance Workers Compensation Business Auto Business Liability Umbrella
2001, Dalton Publications, LLC

Chapter 10: Personal Property and Liability Insurance

Business and Professional Use of Property and Liability Insurance )

(contd

Professional Insurance Errors and Omissions

Chapter 10: Personal Property and Liability Insurance

2001, Dalton Publications, LLC