What are the 3 types of homeowners insurance forms?
- Basic – named perils
- Broad – named perils and all risk
- Comprehensive – all risk
These forms determine the extent of coverage for homeowners.
What types of personal property exposures are eligible for homeowners forms?
- Dwellings containing more than one family
- Insureds having more than one principal dwelling
- Mobile homes situated on a full basement
- Dwellings in the course of construction that an insured will occupy upon completion
These exposures define the properties that can be insured under homeowners policies.
What are the main coverage sections of homeowners forms?
- Section I – Property Coverages
- Section II – Liability Coverages
These sections outline the types of coverage provided in homeowners insurance.
What are the coverages under Section I Property?
- Dwelling/building
- Detached private structures
- Personal property
- Additional living expenses
These coverages protect various aspects of the insured property.
Define insured.
Person named on policy, plus while living in the same household- his or her spouse, relatives of either of named insured, any others persons under 21 in their care (excluding roomer or boarders), students away at school who are still dependent
This definition clarifies who is covered under the homeowners insurance policy.
Define Dwelling and premises.
- Dwelling – the building described on policy, occupied by you either wholly or partially as private residence
- Premises – land contained within the lots lines which the dwelling is situated
These definitions help distinguish between the insured property and the land it occupies.
Explain coverage A: Dwelling/Building.
- Dwelling and attached structures
- Outdoor equipment installed permanently on premises
- Outdoor swimming pools and equipment
- Materials and supplies to be used on premises
- Buildings fixtures and fitting temporarily removed for repair or seasonal storage
- Outdoor trees, plants, and shrubs (named perils, 5% dwelling limit max 500 per item, no wind/hail, no lawns)
Coverage A provides protection for the main structure and associated features.
Explain coverage B: Detached private structures.
Any structure separated from the dwelling by a clear space
This coverage includes structures like garages or sheds that are not physically attached to the main dwelling.
Explain coverage C: Personal property.
- On premises coverage – belongings or contents of dwelling, no coverage for roomers or boarders
- Off premises coverage – anywhere in the world, temporarily away
- Property of students
Coverage C protects personal belongings both on and off the insured premises.
What’s excluded under coverage C personal property?
- Motorized vehicles or equipment
- Camper units, truck caps, trailers or equipment
- Aircraft or equipment
- Exceptions: lawnmowers, snow blowers, garden tractors, small watercraft
These exclusions clarify what personal property is not covered under the policy.
Define Equipment.
Any audio, visual, recording or transmitting equipment powered by the electrical system of a motor vehicle or aircraft
This definition specifies the type of equipment that may be covered or excluded.
What are the “Special Limits of Insurance” in Coverage C?
- Business property - $2,000
- Jewelry, watches - $1,500
- Coin collections - $200
- Stamp collections - $1,000
- Collectible cards - $1,000
- Bicycles - $500
- Securities - $2,000
- Property of Students away - $2,500
- Money or Bullion - $200
- Garden type tractors - $5,000
- Watercraft - $1,000
- Computer Software - $2,500
- Spare automobile parts - $1,000
These limits specify the maximum amount payable for certain types of personal property.
Explain coverage D: Additional living expenses.
Coverage is provided for additional living expenses and fair rental value when dwelling is damaged by insured perils and made unfit for occupancy
This coverage helps maintain the insured’s standard of living during repairs.
What’s debris removal extension?
Provides 5% of amount of insurance for removal of debris after losses
This extension covers the costs associated with clearing debris after a covered loss.
What’s Moving to another home extension?
Coverage is provided for transportation losses when clients are moving to another home they will occupy, limited to losses occurring in Canada and duration of coverage is 30 days
This extension protects against losses during the moving process.
What’s firefighting expense extensions?
If a neighboring municipality has to come assist with putting out a fire, provides $1,000 for bill
This extension covers costs incurred for firefighting assistance.
What’s change of temperature extension?
Damage to personal property caused by change of temperature must be to dwelling or equipment from insured peril
This extension covers losses due to temperature changes affecting insured property.
What’s freezer food extension?
$2,000 available for food spoilage from accidental power interruption on or away from premises
This extension covers losses to food stored in freezers due to power issues.
What’s lock replacement extension?
Covers cost to replace or re-key dwelling locks when keys have been stolen and reported to police
This extension provides security coverage in case of stolen keys.
What’s tear out extension?
Insures costs to expose plumbing and appliances to repair insured losses
This extension covers the costs of accessing damaged areas for repairs.
What’s arson conviction extension?
Provides up to $1,000 towards the conviction of any arsonist who causes damage to dwelling
This extension incentivizes reporting information leading to the conviction of arsonists.
What’s the credit & debit cards forgery and counterfeit money extension?
Up to $1,000 in coverage for credit card bills when stolen, debit cards without PIN in wallet, forgery of checks, counterfeit money accepted
This extension protects against financial losses from card fraud.
How do homeowners forms generally pay losses to dwellings and personal property?
- Dwellings/detached structure - RC
- Guaranteed RC - rebuild home regardless of the amount
- Personal property - RC - electronic media, records, items that cannot be replaced, memorabilia, will be ACV
This outlines the methods of loss payment for different types of property.
Define RC and ACV.
- RC - the lesser of repairing or replacing the damaged property
- ACV – RC – depreciation
These terms define how property values are calculated for claims.
