Property Insurance - C12 - Chapter 9 Exam | Questions & 100% Correct Answers (Verified) | Latest Update | Grade A+

What is the difference between personal and commercial property insurance forms in the risk they encompass? : Personal property insurance encompasses policies for the buildings, contents, and related exposures of private property owners. Commercial property insurance encompasses policies for property and related exposures of business owners operating manufacturing, mercantile, and contracting operations. How is personal property insurance more of a commodity than commercial property insurance? : It is underwritten by broad rules of eligibility. Since personal property insurance's risks are dwellings, the terms, rating and premiums are easier to set. There are not that many variations, it is rather homogeneous. Variations from the set standards are relatively few. 2 | P a g e However commercial operations and building construction types are so different from one to the other that commercial property insurance can be more difficult and labour intensive for the insurer and requires a more custom approach to assessment, rating and policy issuance for each risk. What is the difference between personal and commercial property insurance forms in the language used in wordings? : Habitational policies : Are written in plain language. The language used for the policies and their riders or endorsements is less formal and thus clearer. Even the size of the font and the length of the lines of text aid in the readability and to ease the public's suspicion of fine print in insurance policies. Commercial policies: Were traditionnally written in formal legal language, but has been written in plan language in recent year