UNIT_11_Homeowner_s_Insurance_09

UNIT_11_Homeowner_s_Insurance_09 - UNIVERSITY OF...

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UNIVERSITY OF TECHNOLOGY, JAMAICA FACULTY OF BUSINESS AND MANAGEMENT SCHOOL OF BUSINESS ADMINISTRATION INSURANCE UNIT 11 – HOMEOWNER’S INSURANCE THE LIABILITY RISK HOMEOWNERS INSURANCE, SECTION 1 OBJECTIVES 1. Identify the major homeowners policies for homeowners 2. Explain the major provisions in Section 1 of the Homeowners 3 policy, including: Section 1 property coverages Section 1 perils insured against Section 1 exclusions 3. Given a specific property loss situation, explain whether the Homeowners 3 policy would cover the loss 4. Explain the insured’s duties after the loss occurs. 5. Explain and give an illustration of the loss settlement provision in the Homeowners 3 policy. HOMEOWNERS INSURANCE BASICS Analysis of Homeowners 3 Policy Section I Coverages Section I Perils Insured Against Section I Exclusions Section I Conditions Section I & II Conditions Homeowners Insurance Basics Homeowners insurance forms, drafted by the Insurance Services Office (ISO) are widely used in the US They are designed for the owner-occupants of family dwellings A policy can be used to cover the dwelling, other structures, personal property, additional living expenses, personal liability claims, and medical payments to others Six forms are available Current Homeowners Policies 1
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HO-2 (broad form): covers the dwelling, other structures, and personal property on a named perils basis HO-3 (special form): covers the dwelling and other structures on a risk-of-direct-physical loss basis. All direct physical losses are covered except those losses specifically excluded. Personal property is covered on a named perils basis HO-4 (contents broad form): covers a tenant’s personal property on a named perils basis HO-5 (comprehensive form): provides open perils coverage (“all-risks coverage”) on the dwelling, other structures and personal property. All direct physical losses are covered except those losses specifically excluded HO-6 (unit owners form): covers personal property on a named perils basis. A minimum of $5,000 of insurance is also provided on the condominium unit that covers improvements and additions HO-8 (modified coverage form): designed for older homes. Dwelling and other structures are based on the amount required to repair or replace using common construction materials and methods Analysis of the HO-3 Policy The HO-3 policy has two sections of coverage: Section I: Property Coverages Coverage A: Dwelling Coverage B: Other Structures Coverage C: Personal Property Coverage D: Loss of Use Additional Coverages Section II: Liability Coverages Coverage E: Personal Liability Coverage F: Medical Payments to Others The following persons are considered “insureds” under the policy: Named insured and spouse Resident relatives Other persons under age 21 Full-time student away from home Section II coverage also includes: Any person legally responsible for covered animals or watercraft With respect to a motor vehicle covered by the policy (e.g., a riding mower), persons employed by the named insured Section I Coverages 2
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Coverage A
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This note was uploaded on 02/26/2012 for the course ECON 101 taught by Professor Adam during the Three '11 term at University of Technology, Sydney.

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UNIT_11_Homeowner_s_Insurance_09 - UNIVERSITY OF...

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