RIL 266 Final Exam Review - CHAPTER 24: Property Insurance...

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CHAPTER 24: Property Insurance 1) Insurance Premium—Payment due to an insurance company (insurer) by a person which obligates the insurance company to pay for damages if a loss occurs a) Fire Policy—fire, lightning, and losses sustained while removing property from an endangered premises 2) Homeowner Policy—package policy which avoids overlaps and missed coverages and is less expensive than if each peril were to be insured separately; a) Covers: house, garage, other structures, living expenses if forced to live elsewhere, personal property, and some liability away from premises b) Not covered: structures used for business purposes or rented or leased to others, automobiles, pets, jewelry, furs, etc. 3) Homeowner’s Forms a) HO-1—basic form, insures against 11 perils b) HO-2—broad form, covers all 18 perils c) HO-5—comprehensive form, covers all perils except those listed; “all-risks policy” d) HO-3—special form—combination that provides HO-5 coverage on one’s dwelling and private structures and HO-2 on personal property e) HO-4—tenant’s form, broad form coverage for personal property and 20% of property covered f) HO-6—condominium policy, covers personal and additions not insured by association’s policy g) HO-8—older homes, insures like HO-1 for actual cash value not replacement cost i) Old for old—policy pays only the depreciated cost ii) New for old—policy pays replacement cost
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This note was uploaded on 09/27/2011 for the course FINANCE 266 taught by Professor Owens during the Spring '10 term at Missouri State University-Springfield.

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RIL 266 Final Exam Review - CHAPTER 24: Property Insurance...

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