AD Banker AL P&C Well Elaborated

Accident - ANSWERSa sudden event (such as a crash) that is not planned or intended and that causes damage or injury occurance - ANSWERSan event that results in a loss. Pro Rata Cancellation - ANSWERSA proportionate cancellation of insurance that refunds premium to the insured based on the precise number of days coverage was in effect. Short Rate Cancellation - ANSWERSA cancellation of insurance that incurs a financial penalty. Sometimes when the insured cancels the policy before its expiration date, a short-rate cancellation is issued. The insurer retains a portion of the unearned premium to cover costs. Flat Cancellation - ANSWERSA cancellation of insurance that is retroactive to the effective date of the policy. No coverage is provided and the insurer must refund the policy premium paid by the insured. Inherent Vice - ANSWERSA quality of or condition within a particular type of property that tends to make the property destroy itself. Example rust rot and fading of paint Non-concurrency - ANSWERSindicates the existence of two or more policies covering the same exposures that don't have the same policy periods. Business Owner Policy (BOP) - ANSWERSA package of insurance policies specific to the needs of a particular kind of small firm parts of BOP - ANSWERS1. Declarations Page 2. Coverage form and had 3 sections Section 1: Propertyu Section 2: Liability Section 3: Common Policy Conditions (apply yo both Section I and II 3.) Any applicable endorsements Underwriting responsabiliies - ANSWERSs responsible for risk selection, classification, and rating. The Basic Dwelling form DP-1 is - ANSWERSPaid on a named perils basis does not cover theft, or loss to trees, shrubs, and plants. perils insured against are fire, lightning, and internal explosion. If an additional premium is paid for Extended Coverage (EC), the following perils are also included: Windstorm or hail Explosion Riot or civil commotion Aircraft, vehicles Smoke Volcanic eruption The peril of vandalism or malicious mischief (VMM) may also be included with the payment of an additional premium. EC and VMM coverages, if purchased, must appear on the declarations. If VMM is purchased, it excludes loss for vandalism in vacant buildings. Losses to the dwelling, other structures, and contents are paid on an actual cash value basis. Musical Instrument Floater - ANSWERSNo coverage is provided if the covered instruments are played for remuneration, or a fee. Anyone playing for hire must purchase an endorsement and pay an additional premium. The insured must report newly acquired items within 30 days eligible for BOP - ANSWERSsmall to medium Apartment buildings of any size, including residential condominium associations. Office buildings that are occupied primarily for office purposes that do not exceed 6 stories in height or contain more than 100,000 square feet in total area. This includes office condo associations. Service and processing businesses such as bakeries, florist, jewelry repair, shoe repair, laundromats, dry cleaners, funeral homes, and print shops. Buildings and business personal property for businesses operating as wholesalers provided that no more than 25% of annual gross sales are derived from retail operations, and no more than 25% of the total floor area is open to the public. Eligible contractors (subcontractors) include, among others, the following as long as the total annual payroll does not exceed $300,000, and no more than 10% of total annual gross sales comes from subcontracted work. (General contractors are too large to qualify) Types of Authority - ANSWERSExpress - Authority that is written into the producer's agency contract. An example would be the producers binding authority if written in the contract. Implied - Authority the public assumes the producer has. An example would be the business activities of providing quotes,completing applications and accepting premiums on behalf of the insurer. Apparent - Authority created when the producer exceeds the authority expressed in the agency contract. This occurs when the insurer does nothing to counter the public impression that such authority exists. An example would be the producer's acceptance of premiums on a lapsed policy. Commercial Coverage Policy components - ANSWERSincludes a Common Policy Declarations and Common Policy Conditions form, Although each client will have different and specific coverage forms, their policies will contain the same common policy declarations and common policy conditions form. There are 4 Key components: Declarations Page- Who, What, When, Where, How much Common Policy Conditions Cancellation changes, examination of your books - insurer can look up to 3 years after policy end and records inspections and surveys Premiums Transfer of Your Rights and duties under this policy- may not transfer unless written consent Endorsements and Coverage Parts Cause of Loss Basic Form Commerical Coverage Policy - ANSWERS(perils): fire, lightning, windstorm, or hail, smoke, aircraft, riot or civil commotion, vandalism, sprinkler leakage, sinkhole collapse, and volcanic action. Exclusions include ordinance or law -earth movement -flood -governmental action -nuclear hazard, utility services -war and military action -water or fungus -wet or dry rot, and bacteria. A special exclusion exists for business income and extra expense coverages. Vandalism does not include coverage for theft but does cover building damage caused by the breaking or exiting of burglars Smoke does not include coverage for smoke from agricultural smudging or industrial operations. The basic causes of loss form contains a Limitation provision that specifies loss of animals is covered but only if they are killed or their destruction is made necessary. The basic form includes the Additional Coverage - Limited Coverage for Fungus, Wet Rot, Dry Rot, and Bacteria. The Limit of insurance is up to $15,000 for all covered losses that take place during the 12-month period that begins with the policy's inception date. Arbitration - ANSWERSsettling a dispute by agreeing to accept the decision of an impartial outsider Right of Salvage - ANSWERSThe right of the insurer to take possession of damaged property after the loss to the property has been paid. The salvage belongs to the insurer. salvage value - ANSWERSexpected selling price of an asset at the end of its useful life endorsement - ANSWERSpolicy form that broadens or restricts or alters or adds provisions of a property and casualty insurance contract Concurrent Causation - ANSWERSA situation where there are 2 causes resulting in a loss and 1 of the causes is excluded while the other cause is not excluded. Unless the policy specifies otherwise, the loss is covered. Example: a policy that excludes earth movement will still pay a loss due to for or explosion that ensues directly from the earth movement. Concurrency/Concurrent Policies - ANSWERSThe existence of two or more policies covering the same exposures, having the same policy periods, and the same coverage triggers. For example, if an auto policy and an umbrella policy are written with the same policy dates, they are considered to be concurrent. Bailee's - ANSWERSAn individual entrusted with servicing, storing or repairing property Bailor - ANSWERSthe party who temporarily gives up possession of the property (the customer) Unoccupancy - ANSWERSA property that contains personal property but has no occupants. vacancy - ANSWERSA provision in a property policy that eliminates or limits coverage for buildings that don't contain sufficient personal property to support intended occupancy or use. burglary - ANSWERSThe taking of property from inside the premises or a locked safe or vault by a person who commits forcible entry into, or exit from, the property of another while trespassing. robbery - ANSWERSthe taking of property from a person's possession by using force or threats theft - ANSWERSThe broadest of the crime coverages, theft includes any act of stealing. Mysterious Disappearance - ANSWERSThe loss of property when the cause of loss is not known. This is NOT theft, burglary, or robbery. Direct vs Indirect (consequential) loss - ANSWERSDirect- loss that causes direct damage to property without interviening cause ( fire damage to an insurered property) Indirect loss- loss that is not a direct result of peril ex addtional living expense that resulted from a resisdence being uninhabitiable as a result of a fire Named perils - ANSWERSA type of insurance that covers a specific set of named perils. If a peril isn't specifically named, it isn't covered. Open Peril - ANSWERSprovides insurance for all causes of loss that are not specifically excluded under the policy. Typical exclusions are flood and earthquake Replacement value approach - ANSWERScost to replace or repair damaged property with like kind and quality at current pricing without a deduction for depreciation. Usually requires covered property to be insured to a certain percentage of its replacement value such as 80%-90% Actual Cash Value - ANSWERSreplacement cost minus depreciation Agreed Value - ANSWERSThe insurance company and insured agree to a specific value of a particular property before the policy is issued. If a total loss occurs, the insurer will pay the Agreed Value. stated value - ANSWERSA valuation method that states the value of a particular property on the declarations page, but provides for the insurer to pay the lesser of the stated value or ACV of the property following a loss. Valued Policy - ANSWERSA policy in which the insurer pays a stated amount in the event of a specified loss (usually a total loss), regardless of the actual value of the loss. Functional Replacement Value - ANSWERSThe cost to replace property with other property that performs the same function with similar efficiency, although the replacement property is not identical to the property being replaced. This valuation method is typically used with older property (such as a Victorian home) for which the replacement value exceeds the insured's ability or willingness to purchase coverage. Market Value - ANSWERSprice a willing buyer would pay for property purchased from a willing seller Classifications of Construction - ANSWERSFrame - A building that has a roof, floor, and supports of combustible material, usually wood, and combustible interior walls. Joisted Masonry - Buildings with exterior walls of masonry or fire-resistive construction rated for not less than one hour and with combustible floors and roofs. Noncombustible - The buildings and its walls, floors, and structural framework are constructed of noncombustible materials. Masonry Noncombustible - Buildings with exterior walls of masonry (not less than 4 inches thick) or made of fire-resistive construction with a rating of not less than one hour and noncombustible floors and roofs. Fire Resistive - The entire building and roof are constructed of reinforced concrete and steel. Must have at least a 2-hour fire resistive rating. Modified Fire Resistive - The materials used in the walls, floors, and roof of a structure must have a fire resistive rating of at least 1 hour, but less than 2 hours. Methods of Writting Property Insurance Limits - ANSWERSSpecific- insures single item of property for a single limit of insurance (fire for one dwelling for 1,000) Scheduled Limit- insures one or more items of property for 1 single policy (one farm policy insures a home for 100,000 and barn 200,00 Blanket- insures property located at more than one location OR more than one type of property at the same location OR both. For example, the $1 million blanket limit applies to two separate buildings at two separate locations, as well as the business personal property contained in each building. Parts of Property Policy - ANSWERSDICE D- eclartaions who, what, where, when How much I-nsuring agreement states an insurance companies promise to pay the insured this is usually broad and other sections restricts or limit the scope of coverage Conditions Exclustions Policy Period - ANSWERSSpecifies that coverage only applies to losses occurring when the policy is in force. Concealment or Fraud - ANSWERSSpecifies that coverage will not apply if an insured makes a material concealment, misrepresentation, or fraud in the application pertaining to the claim. Liberalization Clause - ANSWERSSpecifies that if the insurer broadens coverage with no increase in premium, that broadening of coverage will apply to existing policies without the need for an endorsement. Cancellation - ANSWERSSpecifies the terms under which the policy can be cancelled by the insurer and the named insured. The named insured may cancel the policy at any time by giving written notice to the insurer. If the policy has been in effect for less than 60 days, and it is not a renewal, the insurer may cancel the policy for nonpayment of premium by giving 10 days written notice, and 30 days written notice for any other reason. If the policy has been in effect for 60 or more days, and it is not a renewal, the insurer may cancel the policy for nonpayment of premium by giving 10 days written notice, and 30 days written notice for the following specific reasons: material misrepresentation by the insured and substantial changes in risk. Nonrenewal - ANSWERSAddresses the requirements of the insurer if it elects not to renew a policy. assignment - ANSWERSSpecifies that the insured may not transfer rights of ownership without the insurer's prior written consent. Subrogation - ANSWERSStates the insured must transfer to the insurance company its right of recovery against any party causing a loss after it accepts payment from the insurer for a loss. Subrogation allows the insurer to recover from the party that caused a loss any amounts paid to an insured. It also: Prevents the insured from collecting twice for the same loss Helps the insurer control expenses and premiums Ultimately holds the responsible third party accountable for the loss Changes - ANSWERSAny changes to the policy must be made in writing by the insurer. Insurable Interest and Limit of Liability - ANSWERSThe insurer will not be responsible for payment of loss in an amount greater than the financial interest of an insured. Restoration/Non-reduction of Limits - ANSWERSSpecifies the sum and circumstances under which an insurer charges the insured, usually a business firm, to restore a policy to its initial face value or not reduce limits of coverage after the insurer has paid a claim either to the insured business or a third party on behalf of the business. Duties in the Event of Loss - ANSWERS1. Notify police 2. Prompt notice of loss 3. Provide details of the loss 4. Protect the property from further loss 5. Inventories and inspection 6. Examination under oath 7. Cooperation 8. Proof of Loss Loss Settlement - ANSWERSSpecifies which loss valuation method will apply to the property insured under the policy. appraisal - ANSWERSAddresses disputes about the amount of a loss. If the insurance company and insured cannot agree on the amount of a loss, either party may request an appraisal. Each party selects its own appraiser and the appraisers select an umpire. Agreement by any two parties settles the loss. Each party pays the cost of its own appraiser and shares the costs of the umpire and the appraisal. Appraisal is a dispute resolution method and is not used to determine whether the policy provides coverage for a loss. Other insurance (appointment or Pro Rata Liabality) - ANSWERSpecifies the process to be followed when more than one policy covers the same loss. Each policy pays no more than its share of the loss. Legal Action Against Us - ANSWERSSpecifies that the insured may not bring suit against the insurer until the insured has complied with all the terms of the policy. Loss Payment - ANSWERShow insurer will may payment for the loss and applicable time frames that must be honored when sumbitting proof of loss For Insurance Service Office personal lines is 60 days commerical is 30 Abandonment of Property - ANSWERSSpecifies that the insurer is not obligated to accept any property abandoned by an insured. Under ISO ( Personal Lines Formsis 60 days Commercial Lines Forms, this time frame is 30 days. Mortgage Clause - ANSWERSow the policy protects the mortgagee's financial interest. (A mortgagee has insurable interest in real property.) Payment is made to mortgagees only up to its insurable interest in covered property and in order of precedence. The mortgagee must comply with requirements if the insured's claim is denied and the mortgagee wishes to collect under the policy No Benefit to Bailee - ANSWERSSpecifies that no coverage applies if loss payment benefits a bailee. Recovered Property - ANSWERSSpecifies the procedure to be followed when lost or stolen property is recovered after the insurer has made payment under the policy. Each party shall notify the other of any recovery and, under most property policies, the insured has the right of keeping the claim payment or returning the claim payment and retaining right to the property after adjustments have been made for any damage. Bankruptcy - ANSWERSthe bankruptcy or insolvency of insured does not relieve the insurer of any duties under the policy death - ANSWERSsurer will extend coverage to the legal representative of the deceased with respect to the premises and property covered under the policy at the time of the named insured's death. Loss Payable Clause - ANSWERSSpecifies how the policy protects the interests of a loss payee. A loss payee has insurable interest in personal property. Exclusions on Property - ANSWERSnot covered, other perils exluded in provision stated elsewhere the policy common exlusions are: Ordinance or Law Earth movement War Water Perils that are NOT covered by the policy are listed in the exclusions section. Other perils may be excluded in provisions stated elsewhere in the policy (i.e., water damage, flood, sewer backup, etc.). Utility failure that originates off-premises Neglect of the insured to protect covered property from further loss Intentional loss Nuclear hazard, war, and military action Governmental action Fungus, wet rot, dry rot, and bacteria (e.g., mold) Additional Coverages - ANSWERSautomatically included in property policies without an additional premium. The type of additional coverages depends upon the type of policy. Additional coverages are paid in addition to those stated in the insuring agreement and include debris removal, collapse, and fire department service charges. Named Insured - ANSWERSA person, corporation, partnership, or other entity identified as an insured party in an insurance policy's declarations page. receives the broadest coverage of all person or organziations protected by a policy Insured - ANSWERSThe person or organization that is protected by insurance; the party to be indemnified. First Named Insured - ANSWERSthe person or organization whose name appears first on the declarations page ; granted rights and responsiblities by the policy that are bot granted to the other insured usually responsible for paying premiums and has the right to receive any return premiums, to cancel the policy, and to receive the notice of cancellation or nonrenewal Additional Insured - ANSWERSA person or organization not ordinarily protected by a policy but which, through the addition of an endorsement to the policy, is granted status as an insured. under a liability policy an additional insured is often a party to an indemnification or hold harmless agreement Deductible - ANSWERSspecified dollar amount of each covered property loss that an insured must bear. In addition, deductibles can help reduce the number of frivolous claims that an insured might otherwise consider submitting, and can also be a cost control factor. Essentially, the higher the deductible that an insured chooses, the lower the premium will be Coninsurance - ANSWERSis used to encourage the insured to purchase and maintain insurance to value, and to establish the basis of payment in the event the insured fails to maintain a specified percentage of that value. The higher the coinsurance percentage the insured agrees to purchase, the lower the rate that the insured pays for the insurance. Amount of Insurance Carried ÷ Amount of Insurance Required x Amount of Loss = The amount the insurer pays Vicarious Liability - ANSWERSThe liability assigned to one party for the conduct of another, based solely on a relationship between the two. Examples include employer/employee relationships and parent/child relationships. Negligence - ANSWERSfailure to use ordinary or reasonable care ex running a red light gross negligence - ANSWERSfailure to exhibit any sort of care through recklessness, deliberate indifference to well-being of others ex driving under the influence Loss of Consortium - ANSWERSCompensation to a husband/wife for the loss of companionship of a spouse. Attractive Nuisance - ANSWERSArtificial conditions on land for which an owner is liable for physical injury to child trespassers if Compensatory Damages - ANSWERSAwarded to the injured party for the actual loss sustained. Damages are Special or General. Special damages are an award to an injured party for actual and known expenses such as bills, loss of earnings, and the costs of repairing or replacing damaged property. Special damages are paid for tangible loss or damage. General Damages are an award to an injured party for pain, suffering, mental anguish, disfigurement, and similar types of losses. General damages are paid for losses that cannot be calculated objectively and assigned a specific dollar value. Punitive Damages - ANSWERSAn award to an injured party, in addition to compensatory damages, to punish and discourage a wrongdoer from repeating negligent acts or omissions. Most liability policies do not provide coverage for punitive damages. bodily injury liability - ANSWERSLegal liability arising from physical injury, including sickness, disease, and death caused by the acts or omissions of an insured property damage liability - ANSWERSLegal liability arising from physical damage to tangible property of others caused by the negligence of an insured. medical payments coverage - ANSWERSCoverage for the bodily injury of third parties sustained on an insured location or as a result of the insured's activities. Coverage is provided for the payment of necessary medical, surgical, x-ray, dental, ambulance, hospital, professional nursing, and funeral expenses. Payments are made regardless of the insured's negligence. This coverage is provided to discourage liability claims and lawsuits and, when payments are made, are not an admission of liability. Personal Injury Liability - ANSWERSlegal liability arising from specific offenses committed by an insured that results in injury other than bodily injury or property damage Notice of Loss - ANSWERSInsured must notify the insurer in writing as soon as possible in the event of any Loss or occurrence. The written notice should include the named insured, policy number, and details about the time, place, circumstances of the occurrence, and names and addresses of any claimants and witnesses. Proof of Loss - ANSWERSA formal statement made by the insured and provided to the insurer that provides necessary details for the insurer to determine its liability under a policy. Certificate of Insurance - ANSWERSA document that shows evidence that specific types of insurance were purchased by the insured, at certain limits, and that they were in place on the date the certificate of insurance was issued. A certificate of insurance is not proof of insurance, as a binder is. Libel - ANSWERSA written defamation of a person's character, reputation, business, or property rights. slander - ANSWERSspoken untruths that are harmful to someone's reputation Tort Elements - ANSWERSLBPD Legal Duty Owed Breah of Legal Duty Owed Promixate Cause Damages if any one of these is missing or the failure to act it is not considered negligent Common Law Defenses - ANSWERSlaw practiced as the result of judicial or court decisions (i.e., case law and precedents). Contributory Negligence - Prevents recovery for damages caused by a negligent party if the claimant was negligent to any extent. For example, if the claimant is 5% negligent and the wrongdoer is 95% negligent, the claimant is not permitted to collect damages. Assumption of Risk - Prevents recovery if the claimant knowingly assumed the risk. Intervening Cause - Prevents or limits recovery from the wrongdoer when a second, distinctly separate negligent act occurs after the original negligent act, but before damage occurs, and interferes with the chain of events that brings about the loss. The intervening cause must be unexpected and unforeseen. Statutory Law Defenses - ANSWERSWritten law enacted by legislatures. Comparative Negligence - Damages are reduced in proportion to the degree of the claimant's negligence. For example, if the claimant is 5% negligent and the wrongdoer is 95% negligent, the claimant may only recover 95% of damages. Statute of Limitations - The length of time during which legal proceedings may be initiated. This time period is established by federal or state law and usually begins on the day an event occurs. Coverage Triggers (casulty) - ANSWERSLiability policies pay claims on behalf of the insured only if the insured is legally obligated to pay. The two methods used to determine whether an insured is legally liable for an incident are Settlement and Judgment. Settlement - This occurs when a claimant agrees with the insured's insurance company to settle the claimant's compensatory damages known as "special" (specific) damages and general damages and indemnifies (financially restores) the claimant back to pre-injury status. Judgment - If a settlement is not agreed upon, both parties must go to court and the court will issue a Judgment. Damages (Casualty) - ANSWERSLiability claims are assessed in specified dollar amounts. Generally, damages paid are referred to as Compensatory Damages, which are broken into two categories: Special (Economic) Damages (Specific Damages) General (Non-economic) Damages Punitive Damages are not Compensatory Damages and they do not follow the rules of indemnification. They are are assessed and paid in addition to special and general. Designed to punish the individual and persuade others from committing the same offense No-fault benefits - ANSWERSclaimant must prove the defendant (insured) is legally liable for the cause of injury or damage. If proven, the insurer pays the claim to the claimant. The insurer can also pay a claim to avoid a lawsuit or to reduce the financial impact of the legal action, even if the insured (defendant) was not liable for the incident. Medical Payments - Pays regardless of fault. Medical payments are sometimes referred to as Goodwill Insurance. However, they only pay the medical costs related to the injury. Limits are typically low, but will pay the doctor, the hospital, the dentist and the funeral home. Supplementary Payments - Pays a variety of costs, such as investigative costs, appeal or attachments bonds, pre-judgment interest awarded to the claimant, and reimburses defense costs to the insured (defendant). TEST TIP Know that these benefits are paid regardless of fault. Strict Liability applies to products - ANSWERSIf a claimant can prove that a product caused the injury, the manufacturer will be held liable whether or not the product was defective. Absolute Liability - ANSWERSmost often associated with dangerous animal ownership, abnormally dangerous activities, and employers liability for injuries sustained by their employees. Owners of dangerous animals including lions, bears, and certain dog breeds such as pit bulls and rottweilers are absolutely liable for injuries caused by those animals. Absolute liability applies to the storage of explosives, highly flammable material and weapons or firearms. Contractors are liable for injuries caused from blasting operations. Fire Legal Liability (tenants coverage) - ANSWERSgap policy - provides negligent fire coverage caused by an insured tenant -common in homeowners liability and can be purchased as part of a commercial liability policy Additional or Supplementary Coverage - ANSWERSSpecifies the insurer's claim-related expenses, including the expenses at the insurer's request, premium on appeal, or bail bonds. These payments are paid in addition to the policy limits. Conditions of a casualty - ANSWERSSpecifies the general rules (obligations) that the insured and insurer have agreed to follow throughout the policy period, such as the insured's responsibilities in the event of a loss. Exclusions of casualty - ANSWERSpecifies the exposures (perils) that are not covered under the policy. The policy may deny coverage for certain persons, locations, or circumstances. Endorsements of casualty - ANSWERSAn addition to the policy made by the insurer to broaden coverage, restrict coverage, or further define certain policy provisions. Limit of Liability/Limits of Insurance - ANSWERSThe restriction a liability policy places on the dollar amount of coverage. Per Occurrence Limit - ANSWERSThe most the policy will pay for all losses arising out of any one occurrence, regardless of other policy limits Per Person Limit - ANSWERSThe most the policy will pay for loss to any one person injured in any one loss, regardless of other policy limits. Aggregate Limit - ANSWERSThe maximum amount an insurer will pay for all covered losses during the covered policy period. Each loss payment made under per occurrence or per person reduces the aggregate limit of liability Split Limits - ANSWERShe most the policy will pay for loss of different types that occur as a result of any one loss, regardless of other limits. For example, the limits of liability on an auto policy for bodily injury might be represented as 100/300/100 ($100,000 is the per person limit for bodily injury liability, $300,000 is the per occurrence limit for bodily injury, and $100,000 is the per occurrence limit for property damage liability). Combined Single Limit - ANSWERSThe most the policy will pay for all losses of all types resulting from any one occurrence, regardless of other limits. Restoration of Limits - ANSWERSthe limit of the policy is fully reinstated following a covered loss or on a policy anniversary Duty to Defend - ANSWERSInsurer's obligation to provide an insured with defense to claims made under a liability insurance policy. Broad Form Dwelling Policy (dp-2) - ANSWERScovers DP-1 perils, EC perils, VMM and damage by burglurs falling objects- outside building damage must be present weight of ice or snow- except for awing patios pavements and pools accidental discharge or overflow of water or stream- from HVAC sprinkler system or household appliance and not vacant more than 60 consecuvtive days Sudden and accidental tearing apart, cracking, burning, or bulging - Must occur to a steam or hot water heating system, air conditioning system, or automatic fire protective system, or household appliance Freezing - Must occur to a plumbing, heating, air conditioning, or automatic fire protective sprinkler system, or household appliance. Applies only if the insured used reasonable care to maintain heat in the building OR shut off the water supply and drained all systems of water Sudden and accidental damage from artificially generated electrical current - This peril is caused by man-made electricity or power surge and does NOT apply to damage to tubes, transistors, electronic components, or circuitry contained in appliances, fixtures, computers, etc. Special Form Dwelling Policy DP-3 - ANSWERSopen peril basis doesnt cover any of th general exculsions as well as the following: Collapse, except for coverage provided by Other Coverages Freezing of a plumbing, heating, air conditioning, or automatic fire protective sprinkler system, or household appliance Freezing, thawing, or weight of water or ice on patios, fences, swimming pools, foundations, piers, docks, retaining walls, etc. Theft of property not part of a covered building or structure Theft in or to a dwelling or structure under construction Wind, hail, ice, snow, or sleet to outdoor radio and TV antennas & aerials, trees, shrubs, plants, and lawns Vandalism and malicious mischief, theft or attempted theft, and any ensuing loss if the dwelling has been vacant for more than 60 consecutive days immediately before a loss Constant or repeated seepage or leakage of water or steam over a period of time from within a plumbing, heating, air conditioning, or automatic fire protective sprinkler system, or household appliance - these systems and appliances do NOT include sumps, sump pumps, mold, fungus, or wet rot unless resulting from accidental discharge or overflow of water or steam and is hidden from view Any of the following: wear and tear; deterioration; mechanical breakdown; smog, rust, or corrosion; smoke from agricultural smudging or industrial operations; pollution; settling, cracking, bulging, or expansion of foundation, walls, floors, pavement, or patios; and birds, vermin, rodents, insects, or domestic animals DP-4 Contents Basic Form (Renters and Tenants form) - ANSWERScovers contents only. Provides basic perils coverage on personal property and allows the insured to increase perils covered by extended coverage endorsement Coverage A: Dwelling - ANSWERS-protects the dwelling and any attachments -includes materials and supplies on or next to described location used to construct alter and repair the dwelling or other strcutures at location -does not cover any damage to the land paid RC except DP-1 it is paid ACV Coverage B: Other Structures - ANSWERS-protects other, unattached, dwellings on the property. -covers landscaping as well as buildings, but not the land. -does not cover other structures used for business purposes. -limit of 10% of coverage A limit and is automatically provided under each dwelling form - InDP-1 the limit does not increase the amount of insurance provided by coverage A the DP-2 and 3 forms provide additional insurance Coverage C: Personal Property - ANSWERScovers the insured's personal property that is at the described location and is usual to the dwelling occupancy. coverage is only when it is on the described location at the insured request coverage is also apply to guest personal property while on location - auto applies when insurer moves for 30 days or until policy expiration -doesnt include notes, accounts, coins and currency, birds, animals fish, aircraft watercraft motovhechiles other than those used to service described location - drawings -paper records -computers credit cards The insured may use up to 10% of coverage C of insurance for loss caused by an insureed peril to cover property anywhere in the world Coverage D - Fair Rental Value - ANSWERSapplies if property under Coverage A, B, or C becomes damaged or destroyed and unfit for normal use due to damage or destruction to the rental property payment is made in the shortest time to repair damages of dwelling that's normally held for rental cancellation of lease is not covere its limit of insurance is up to 20% of the coverage limit of A and is automatically provided under each of the dwelling forms. In DP-1 this limit does not increase the amount of insurance provided in coverage A. In DP-2 and DP-3 provide additional insurance Coverage E - Additional Living Expenses - ANSWERSprovides coverage for indirect loss that occurs to direct loss of property insured under coverage A-C E is automatically included in DP-2 and DP-3 but not in DP-1 pays any necessary increases in living expenses incurred by named insured when covered loss makes the unit in which named insureed lives unihabitable and is only made to the extent the insured household can maintain a normal standard of living payment is made in the shortest time neseccary to repair damaged portion of dwelling. A deduction for conintuing expenses (things that conitne regardless of if the unit can be occupied or not i.e. electric bills or mortgage payment) -E limit of insurance is 20% of coverage A limit and is additional coverage. Examples of things paid under E is hotel room cost, boarding room and dining out Debris removal coverage (dwelling policy) - ANSWERS-policy pays insured reasonable expense for removal of debris of covered property if it was damaged from an insured peril. - this is included in the limit of insurance that applies to the damaged property - 5% of coverage A or 500 per shrub Improvements, Alterations, and Additions (dwelling policy) - ANSWERS-if insured is a tennant they may use up to 10% of the Coverage C limit of insurance of covered loss to improvements, alteraions and additions made or acquired at insured expense to the descibed location only occupied by named insured DP-1 it is included in the in limit of insurance DP-2 and 3 its additional insurance World-Wide Coverage (dwelling policy) - ANSWERSmay use up to 10% of the Coverage C limit of liability for a covered loss to property insured under Coverage C while it's located anywhere in the world. -coverage does NOT apply to rowboats, canoes, or property owned by guests or servants -It is included in the Coverage C limit of liability. Reasonable Repairs (dwelling policy) - ANSWERScovered property is damaged by an insured peril, the policy will pay the reasonable costs incurred by the named insured for necessary measures taken to protect covered property from further damage. not additional insurance and coverage does not increase the limit of insurance that applies to the covered property Property Removed (dwelling policy) - ANSWERSif property is removed from described location to protect it because it is endangered by covered peril coverage is provided for direct loss by any peril while removed - DP-1 coverage is provided for 5 days while removed dp-2 AND 3 coverage is provided for 30 days while removed This does not increase the limit of insurance that applies to property being removed same for Homeowner except it is all 30 days Trees, Shrubs, and Other Plants (Dwelling policy) - ANSWERSUnder the DP-2 and DP-3 forms, coverage is provided for trees, shrubs, plants or lawns on the described location for included perils: fire or lightning; explosion; riot or civil commotion; aircraft; vehicles not owned by the named insured or by a resident of the described location; vandalism or malicious mischief; and damage caused during a burglary or an attempted burglary. This coverage is not included in the DP-1 form. limit:5% of the Coverage A limit, with a maximum of $500 applying to any one tree, shrub, or plant. Exclusions: wind; hail; weight of snow, ice or sleet; and loss by theft. This is additional coverage. Fire Department Service Charge - ANSWERSpays up to $500 for service call to fire dept coverage does not apply when property is located within limits of city, municipality or protection district furnishing fire dept. coverage is provided for services provided by an assisting fire department this is additional insurance and policy deductible does not apply - same for dwelling and homeowner collapse (dwelling policy) - ANSWERSdefinition:he abrupt falling down or caving in of a building, or any portion of a building, but only if it cannot be occupied for its current intended purpose. If a building, or any portion of a building, is in danger of falling down or caving in - or if it's standing, it is NOT in a state of collapse. Under Dp-2 and 3 coverage is provided for direct physical loss to covered property involving collapse of a building, or any part of a building, but only if the cause of loss is: any of the Coverage C named perils; hidden decay; hidden insect or vermin damage; weight of contents, equipment, animals or people; weight of rain which collects on the roof; and use of defective materials or methods in construction, remodeling or renovation if the collapse occurs during the course of the construction, remodeling, or renovation. collapse does not include: cracking settling shrinking bulging or expansion it does not increase the limit of insurance and is NOT provided by DP-1 Glass or Safety Glazing Material - ANSWERSUnder the DP-2 and DP-3 forms, coverage is provided for the breakage of glass or safety glazing material if it is part of a covered building, storm door, or storm window. Coverage is provided for direct loss caused by earth movement and the pieces, fragments, or splinters of broken glass from the glass or safety glazing material. No coverage applies if the dwelling was vacant for 60 consecutive days immediately before the loss. The vacancy provision doesn't apply to losses caused by earthquake. Loss for damage to glass will be settled on the basis of replacement with safety glazing materials when required by ordinance or law. Coverage doesn't increase the limit of liability and is NOT provided by the DP-1 form. Ordinance or Law Coverage - ANSWERSallows payment of up to 10% of the coverage A limit of liability for the increased cost to repair or rebuild a dwelling or other structure to conform with applicable building and land use codes DP-2 and DP-3 only is additional insurance and NO coverage is provided for any loss in value of building or structure due to the enforcement of any ordiance or law or costs incurred by ordinances that require pollution clean up,, removal treatment etc Ordinance or Law Exclusion (dwelling policy and homeowner) - ANSWERSIncreased costs due to the enforcement of any ordinance or law regulating the use, construction, demolition, remodeling, renovation, or repair of property - including removal of debris. Under the DP-3 form, this exclusion doesn't apply to the Other Coverage, Ordinance or Law. Earth Movement Exclusion (dwelling policy and homeowner) - ANSWERSEarthquake, including land shock waves or tremors before, during or after a volcanic eruption; landslide; mudslide or mudflow; subsidence or sinkhole, earth sinking, rising, or shifting. Coverage is excluded whether the earth movement is caused by human, animal, or natural forces. If a direct loss by fire or explosion ensues from earth movement, it is covered. Water Damage Exclusion (dwelling policy and homeowner) - ANSWERSexcludes any damage from tidal waves, flood, sewage backup flood surface water waves if direct loss by fire or explosion results form water damage it is covered Power Failure Exclusion (dwelling policy and homeowner) - ANSWERSpower failure that occurs off the described location is NOT covered if power failure occurs on the described location it is covered Neglect Exclusion (dwelling policy and homeowner) - ANSWERSinsured's neglect to use all reasonable means to save and preserve property at and after the time of a loss War Exclusion (dwelling policy and homeowner) - ANSWERSundeclared war, civil war, insurrection, rebellion. revolution or any warlike act by military force is charge of a nuclear weapon will be deemed a warlike act, even if accidental. War also includes any consequence of the preceding. Nuclear Hazard Exclusion (dwelling policy and homeowner) - ANSWERSAny nuclear reaction, radiation, or radioactive contamination—whether controlled or uncontrolled—except that fire resulting from the nuclear hazard is covered. Intentional Loss Exclusion (dwelling policy and homeowner) - ANSWERSLoss arising out of any act committed by or at the direction of the named insured or any additional insured, with the intent to cause a loss. Coverage is excluded for any insured committing the intentional loss, even those who did not commit or conspire to commit the act that causes the loss. Non- concurrent Exclusions - ANSWERSfollowing exclusions apply, however, if an ensuing loss is otherwise covered by the policy, it will not be excluded: weather decisions; acts or decisions, including the failure to act or decide, of any person, group, organization, or governmental body; faulty, inadequate, or defective planning, zoning, development, surveying, sighting, design, workmanship, repair, construction, renovation, remodeling, grading, compaction, materials used in repair, and maintenance. Automatic Increase in Insurance Endorsement (DP04 11) - ANSWERSautomatic pro rata increase in the Coverage A and B limits of insurance is applied by the percentage shown on the endorsement. This endorsement is used to help offset inflation and may also be referred to as the Inflation Guard Endorsement. The increases are calculated per day, and will increase the dwelling coverage, as well as the premium, annually when the policy renews. If a loss occurs throughout the year, coverage is based on a pro-rated basis. Broad Theft Coverage Endorsement (DP04 72) - ANSWERSnone of the dwelling forms of coverage includes insurance, one of two endorsements must be used if the named insured wishes to have coverage for the peril of theft. This covers theft of personal property and contents of owner-occupied dwellings, co-op, or condo units. The Broad Theft Coverage endorsement may be added to any of the dwelling forms IF the described location is owner occupied. If the dwelling is tenant occupied, the Limited Theft Coverage endorsement must be used. Broad Theft Coverage - Provides insurance for the perils of theft, attempted theft, and vandalism or malicious mischief that results from theft or attempted theft. No VMM coverage applies if the dwelling was vacant for more than 60 consecutive days immediately before the loss On-premises coverage is provided for covered property located at the described location occupied by an insured Off-premises coverage is provided when covered property is away from the described location; however, the property must be owned or used by an insured or residence employee Limited Theft Coverage - Provides insurance for the perils of theft, attempted theft, and vandalism or malicious mischief that results from theft or attempted theft. No VMM coverage applies if the dwelling was vacant for more than 60 consecutive days immediately before the loss On-premises coverage applies when covered property is owned or used by the named insured or a residence employee and is at the described location Dwelling Under Construction Endorsement (DP 11 43) - ANSWERS- dwelling coverage requires insured dwelling to be occupied for residential use -dwellings under construction are not occupied and this endorsements is added insured agrees to advise when construction is complete -limit of liability for Coverage A is provisional and is based on the building's value upon completion. The limit of insurance in place at any time prior to completion is a percentage of the Coverage A limit that equals the proportion the actual value bears to the value on the date of completion. - once construction is complete named insured must notify the insurer to obtain consent to occupy dwelling and adjust policy premium - occupancy under coverage a as a dwelling is permitted for 30 days after completion Personal liability supplement - ANSWERSBecause the dwelling forms only provide property coverage, if personal liability coverage is desired, coverage must be secured under another policy or an endorsement must be attached to the dwelling policy. The Personal Liability endorsement contains its own Definitions section and provides Coverage L - Personal Liability and Coverage M - Medical Payments to Others. Personal liability coverage applies to claims made or suits brought against an insured for damages because of bodily injury or property damage caused by an occurrence to which the policy applies. Payment will be made up to the limit of liability appearing on the declarations for which an insured is legally liable. Coverage is also provided for defense in addition to the limits of liability. Medical payments to others coverage applies to claims for the necessary medical expenses incurred or medically ascertained within 3 years from the date of an accident causing bodily injury to which the policy applies. Medical expenses are reasonable charges for medical, surgical, x-ray, dental, ambulance, hospital, professional nursing, and funeral services Coverage does NOT apply to expenses incurred by the named insured or regular residents of the named insured's household except residence employees Coverage applying to others must arise out of injury to a person on an insured location with the insured's permission, or to persons off an insured location if the injury is caused by the activities of an insured or residence employee while in the course of employment by the insured. Also covered are injuries to persons caused by an animal owned by or in the care of an insured or that arise out of conditions on an insured location or ways immediately adjoining it. The endorsement also provides additional coverages for claim expenses, first aid expenses, and damage to the pr Homeowner Basic Coverage (HO-1) - ANSWERSFLI WHARV VEST Fire or Lightning Internal explosion Windstorm or Hail Aircraft Riot or Civil Commotion Vehicles Vandalism Volcanic Action Explosion Smoke Theft (automatic without an endorsement Broad Form (HO-2) - ANSWERSprovides named perils coverage for the dwelling (Coverage A), other structures (Coverage B), and personal property (Coverage C). The 16 named perils are: Fire or lightning Windstorm or hail Explosion Riot or civil commotion Aircraft Vehicles Smoke Volcanic eruption; losses under Coverages A and B are valued on a replacement cost basis Vandalism or malicious mischief Theft - Automatic without an endorsement Falling objects Weight of ice, snow, or sleet Accidental discharge or overflow of water or steam Sudden and accidental tearing apart, cracking, burning, or bulging of heating or air conditioning system (HVAC) Freezing Sudden and accidental damage from artificially generated electrical current Although coverage for personal property (Coverage C) is provided on the same named perils basis as the dwelling and other structures are, losses are valued on an actual cash value (ACV) basis. does not cover loss to a fence, driveway or walk caused by a vehicle owned or operated by the insured. Special Form (HO-3) - ANSWERScovered on an open perils basis and all losses to dwelling and other structers are valued on a replacement value basis just like HO-2 specifically excludes the following causes of loss under Coverage A and B: Collapse, except as provided by Other Coverages Freezing of household appliances or a plumbing, heating, air conditioning, or automatic fire protective system unless the insured has taken reasonable care to maintain heat in the building or shut off the water supply and drained the appliances and systems of water Freezing, thawing, pressure or weight of water or ice on patios, fences, swimming pools, foundations, piers, docks, retaining walls Theft in or to a dwelling under construction, including construction-related materials and supplies Vandalism and malicious mischief, including ensuing loss, if the dwelling has been vacant for more than 60 consecutive days immediately before the loss Mold, fungus, or wet rot unless resulting from accidental discharge or overflow of water or steam that is hidden from view Wear and tear, marring, deterioration, mechanical breakdown, latent defect, inherent vice, smog, rust, corrosion, dry rot Smoke from agricultural smudging or industrial operations Pollution including discharge, dispersal, seepage, migration, or release of smoke, vapor, fumes, acids, or other chemicals unless such discharge is caused by a Coverage C Peril Insured Against Settling, cracking, bulging, or expansion of foundation, walls, floors, pavements, patios Birds, vermin, rodents or insects Animals owned or kept by an insured Personal property is insured on named perils basis that includes the same 16 named as broad form 2 Coverage C losses are valued on ACV and includes losses to fences, driveway or walk caused by vehicle owned by insured burden of proof for losses to the dwelling and other structures Contents Broad Form (HO-4) - ANSWERSAKA renters or tenant homeowner policy and doesn't provide any coverage for dwelling or other structures because it is for tenants - insured personal property under Coverage C agains loss of 16 named broad perils found in HO-2 and HO-3. Personal property losses are valued on ACV as in HO-2 and HO-3 Comprehensive Form (HO-5) - ANSWERSprovides the broadest coverage of any of the homeowners forms. Coverages A - Dwelling, Coverage B - Other Structures, and Coverage C - Personal Property provide insurance on an open perils basis. Losses to the dwelling and other structures are valued on a RCV losses to personal property are valued on an actual cash value basis. **Deluxe package and is most costly and provides the most coverage Unit-Owners Form (HO-6) - ANSWERSnamed perils coverage to the owner of a condominium or cooperative unit under Coverage A - Dwelling and Coverage C - Personal Property. Coverage B does not appear in this form; however, if the owners of condominiums or cooperative units wish to insure other structures, the value of other structures may be included in the Coverage A limit of insurance. The form insures real property (building and building items) for which the insured is responsible under the bylaws of the condominium association or cooperative corporation. It also insures personal property of the insured while anywhere in the world. Modified Form (HO-8) - ANSWERSUsed when insuring older homes where replacement value and market value are disproportionate or when a moral hazard would be created if insurance were written in an amount equal to 100% of a dwelling's replacement value. named perils basis limit of insurance chosen should represent the functional replacement value of the dwelling, which is the cost to replace damaged property with property that will perform the same function and efficiency even if it isn't of like kind and quality. Exclusions: Falling objects Weight of ice, sleet, or snow Accidental discharge of water or steam Accidental tearing apart, cracking, burning, or bulging of heating or air conditioning systems Freezing Sudden and accidental damage from artificially generated electrical current Insured (Homeowners policy) - ANSWERS- named insured and resident spouse if member of household - other residence of household ( relative of named insured related by blood marriage or adoption under age of 21 - Full time student living away if under 24 and were a member of the household before moving or are under 21 and in care of named insured - Section II Liability Coverages, any person or organization legally responsible for covered animals or watercraft owned by an insured, unless custody of such animals or watercraft is in the course of "business" - as defined by the policy - With respect to a "motor vehicle," to which liability coverage applies, persons using a covered vehicle on an insured location with insured's consent and persons while engaged in the employment of the named insured or a resident relative Insured Location (homeowners policy) - ANSWERS-residence premises -The part of any other premises, structures, or grounds used by the insured as a residence if it is shown in the Declarations or acquired by the named insured during the policy period for use as a residence -Any premises described above used by the named insured, such as a boat slip -Any premises not owned by an insured and where the insured is temporarily residing, such as hotel rooms and summer vacation rentals -Vacant land, other than farm land, owned by or rented to an insured -Land owned by or rented by an insured on which a 1, 2, 3, or 4-family dwelling is being built as a residence for an insured -Individual and family cemetery plots or burial vaults of an insured -Any part of a premises occasionally rented to an insured for other than business purposes, such as a banquet hall where a wedding reception is hosted Residence Employee (homeowner policy) - ANSWERSis an employee of an insured, or an employee leased under agreement to the insured, and whose duties are related to the maintenance or use of the residence premises. - person who performs similar duties elsewhere that are not related to any business of insured such as a person hired to paint the insured house as long as the insured doesnt own a business that paints houses Residence Premises (homeowner policy) - ANSWERSThe 1-family dwelling where the named insured resides The 2-, 3-, or 4-family dwelling in which the named insured resides in at least one of the family units That part of any other building where the insured resides The residence premises also includes other structures and the grounds at that location, such as the 5 acres upon which the insured resides, including the barn, detached garage, and swimming pool business (homeowner policy) - ANSWERSA trade, profession, or occupation engaged in on a full-time, part-time, or occasional basis -Any other activity engaged in for money or other compensation, EXCEPT:Volunteer activities for which no compensation is received other than expense reimbursement -Home day care services for which no compensation is received other than the mutual exchange of day care servicesRendering home day care services to a relative of an insured -Any other activity not described above for which no insured receives more than $2,000 in compensation during the 12 months before the current policy term Homeowner Policy Deductible - ANSWERSapplies to all losses unless otherwise noted in the policy. With respect to any one loss, the policy will only pay that part of the total of all loss payable under Section I that exceeds the deductible amount shown in the declarations - subject to the policy limits. usually $250.00 but insured can choose higher or lower as deductible increases premium payment decreases Coverage A- Dwelling (homeowner policy) - ANSWERS-protects the dwelling and any attachments -includes materials and supplies on or next to described location used to construct alter and repair the dwelling or other structures at location -does not cover - any damage to the land - theft in or from a dwelling under construction including materials used in construction -VMM ensuing loss if dwelling was vacant for more than 60 consecutive days limit of liability is chosen for Coverage A - Dwelling, the other three property coverages (B, C, and D) are automatically issued at limits equaling a specific percentage of the Coverage A limit of liability. If these limits are inadequate, the insured may purchase higher limits. requires insured to purchase insurance in an amount that is no less than 80% of the dwelling's replacement value. If, at the time of a loss, the amount of insurance on the dwelling is less than 80% of the dwelling's replacement value, a penalty will be applied to partial losses. If 80% Replacement cost is not carried, ACV will apply Coverage B: Other Structures Homeowners Policy - ANSWERScovers other structures on residnce premises that are set apart by clear space ex: sheds, detached garages built in pools - exludes 4 types: - Land, including land on which the other structures are located -Other structures rented or held for rental to anyone who isn't a tenant of the dwelling, unless the other structure is used solely as a private garage -Other structures from which any "business" is conducted -Other structures used to store business property that is owned by someone other than an insured or a tenant of the dwelling insurance limit is 10% of the Coverage A limit of liability, does not reduce the Coverage A limit of liability, and may be increased by endorsement. Coverage C: Personal Property (homeowners policy) - ANSWERSovers personal property owned or used by an insured while it's anywhere in the world. After a loss, and at the named insured's request, it covers property owned by others while it's on the residence premises occupied by an insured or property owned by a guest or residence employee while located in any residence occupied by an insured. property at another residence is limited. If personal property is usually located at an insured's residence other than the residence premises, coverage is limited to 10% of Coverage C or $1,000, whichever is greater. Special limits of liability apply to certain categories of personal property Excluded property: -Property specifically described and insured elsewhere, such as on another policy or by endorsement to the homeowners policy -Animals, birds, or fish -Motor vehicles, including equipment, parts, and electronic equipment and accessories that can only be operated by the motor vehicle. An exception exists (meaning coverage is provided) for motor vehicles not required to be registered for use on public roads, used solely to service an insured's residence, or designed to assist the handicapped. -Aircraft, including its parts, except model or hobby aircraft is covered if it's not used or designed to carry people or cargo -Hovercraft, including its parts -Property of roomers, boarders, and other tenants—except those related to an insured -Property in an apartment regularly rented, or held for rental, to others by an insured—except for property covered under the additional coverage, Landlord's Furnishings -Property rented or held for rental to others off the residence premises -Business data, credit cards, and electronic fund transfer cards—including data stored in books of account, on paper records, or on computers -Water or steam insurance limit is 50% of the Coverage A limit of li Coverage D: Loss of Use - ANSWERS3 types of coverage and all for indirect loss. Limit appearing on decleratins is the total limit payable 1.) Additional living expense property loss covered by Section I of the policy makes the residence premises unfit to live in, the policy pays for any necessary increase in living expenses incurred by the named insured to maintain the household's normal standard of living. Payment made for the shortest time necessary to repair or replace the damage. If the insured must relocate permanently, payment will be made for the shortest time it takes the insured to settle at the new location. 2.) Fair Rental Value If a property loss covered by Section I of the policy makes that part of the residence premises rented to others unfit to live in, the policy pays for the fair rental value of such premises - less any continuing expenses - while it's unfit to live in. Payment is for the shortest time required to repair or replace the rented portion of the premises. 3.) Civil Authority Prohbits Use If a civil authority prohibits the named insured from using the residence premises as a result of direct damage to neighboring premises by a peril insured against under the homeowners policy, the policy pays losses under Additional Living Expense and/or Fair Rental Value for no more than two weeks. Limit of coverage: 30% of Coverage A for forms HO-2, HO-3, and HO-5 30% of Coverage C for form HO-4 50% of Coverage C for form HO-6 10% of Coverage A for form HO-8 Debris removal additional coverage (homeowner) - ANSWERS-policy will pay the named insured's reasonable expenses for the removal of debris of covered property if a covered loss occurs -payment is included in limit of insurance if it exceeds this coverage will provide additional insurance equal to 5% of limit available for such expense - limit of 1,000 applies for reasonable expenses to remove from the residence premises debris of the insured's trees felled by windstorm, hail, or the weight of ice, snow, or sleet. Reasonable Repairs additional coverage (homeowners) - ANSWERScovered property is damaged by an insured peril, the policy will pay the reasonable costs incurred by the named insured for necessary measures taken to protect covered property from further damage. does not increase the limit of insurance that a