SECTION 2- Declarations o Statements that provide information about the particular property or activity to be insuredo Purpose- info is used for underwriting and rating purposes for identification of the insuredo Info provided- identification of the insurer, named of the insured, location of property, period of protection, amount of insurance, amount of premium, size of deductible- 2 basic forms of insurance agreemento Named peril- only things specifically named in the policyo All risk policy- all losses are covered except those loss specifically excluded- Exclusionso 3 major types: peril, losses & propertyo purpose: Certain perils are considered uninsurable by private insurers Extraordinary hazards may be present Coverage is provided by other contracts Moral hazard is present to a high degree Coverage is not needed by the typical insured - Homeowners policyo *HO-2 – broad form (named peril)o *HO-3- how property is covered Section one coverage- Persons Insured under Section Io You and spouse, or resident relatives- Exclusions for all: o Earth movement (different in FL) , unless state mandates differently o Water damage but possible theft incurred is coveredo Power failure if occurs at actual residence o Neglect following a losso War/ Nuclear hazardo Intentional losso Government action except if they are trying to prevent spread of fire (mostly out west of country) o- Coverage A: Dwelling (actual home) – all risk- Coverage B: Other Structures (porch, garage) – all risk- A/B exclusionso Freezing unless: Maintain heat in residence Shut off water supply and drain system dry so if burst no water in pipeso Theft at residence under construction and unoccupied Vandalism and mischief if you’ve been away from residence for > 60 days Mold, fungus, and wet rot unless hidden Wear and tear; deterioration; mechanical breakdown; or latent defect Settling, shrinking, bulging, or expansion Birds, vermin, rodents, or insects Animals owned or kept by an insured- A/b underinsured clause:o If insurance carried is less than 80% of replacement cost, the insured receives larger of:§ACV (replacement cost-depreciation)OR§Amount of Insurance carried ---------------------------------- X Loss 80% X RC- Coverage C: Personal Property – you can pick up and moveo Personal property commonly away from residenceo Special limits Cash - $200 Jewelry - $1,500 (theft only) Audio Accessories - $1,500 (in/on vehicle) Firearms - $2,500 (theft only) Business property - $2,500 (at residence) or $500 (away from residence)o Exclusions: Covered elsewhere Animals, birds, and fish (your pets) Motor vehicles except motor wheelchair and something used to maintain residence Aircrafts and hovercrafts Property of tenants except relatives Business data but covers things that were used to store data - i.e. hard drive, computer - Coverage D: Loss of Useo Covers outside fees incurred while property is being repairedo Only covered if cause of loss is covered in section1o Covers up to 30% for additional expenses incurredo If suffer a total loss, policy will cover up to a certain time until you can build/get a new home- Coverage E: Additional Coverageso Reasonable repairso Tress, shrubs and plants –named perilo Fire department service charge – mostly coveredby taxes if you live within city limitso Credit card, counterfeit money, forgery – excluded if its fraud, or a member of your household steals it o Landlord’s furnishings in rented spaceo You are responsible from preventing further damage from occurring to your property Section 2 - Persons insured under Section II- Exclusions for all:o Business unless injury caused by someone >20 has no employees, and works part-timeo Professional liabilityo Waro Communicable Diseaseo Sexual molestation, corporal punishment, or physical or mental abuseo Controlled substanceo Motor vehicles unless its not registered on publicroads i.e. lawn mowero Watercraft unless in use on water, only under HOif injured while it is being storedo Aircraft/ Hovercrafto Expected/intended injuries unless you can provethat you were protecting yourself - Coverage E: Personal Liabilityo Any property damage or bodily damage, an insure causes to someone else o Does not have to occur at your actual residenceo You must be deemed legally liable for the damage in order to receive any funding o Max coverage is $100,000o Exclusions: Property damage to property owned by insured Nuclear energy Third party coverage, does not insure your own injury - Coverage F: Medical Payments to Otherso Someone injured by insured or on insured’s propertyo You do not need to prove legal liability, injury just needs to occur on insured location or if caused by activities of insured o Max payment is $1000o Treatment has to be reasonable and necessary based on injury to be covered o Exclusions: To a residence employee if engaging in activities that apply to position, or if occurs on property Regular residence- i.e. if nanny is in park playing with kids and twists ankle, shes coveredunder your plan b/c she’s “working”o HO-4- renters – coverage of personal property, not actual dwelling itselfo *HO-5 (all risk) o HO-6- condo - you own walls in, can change dwelling I.e.) fire damaging cabinets, my insurance, fire damaging outside of building, ho insuranceo HO-8- older homeo * - standard- Auto policyo Personal introduced in 1977 ISOo Definitions Business Family Member – any related by blood, marriage, adopted or anyone in your care under 21 yrs old Occupying – being in or on, getting into/out of vehicle Your Covered Auto- Described car- Newly acquired (within policy coverage period) - Temporary substitute car- Trailers – some coverage o Part A: Liability Coverage Insuring Agreement- Covers any bodily injury or property damage that you are legally liable for that results from automobile accident- Insured persons – you-- while operating any vehicle that meets requirements; family – with your permission; borrowing a friends car – can be covered under your policy- Has additional coverage for defense cost (you’re sued) Supplementary Benefits- Bail bonds – only for accident (not speeding) - Lost earnings - Reasonable expenses (i.e. missing work for court, acquiring documents) Exclusions:- Intentional acts- Owned property/injuries to insureds- Business-related- Non-permissive
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