FL-Property & Casualty in the 21st Century

Coverage for Damage to Your Automobile Coverage for Damage to Your Automobile is referred to as “Part D” in some policies, and is subject to a deductible; therefore, any payments…

Transportation Expenses In case the automobile insured is stolen, transportation expenses will be paid (if the Other Than Collision coverage is elected), and the policy will also pay for “loss…

Limit of Liability The limit of liability under this section will be the lesser of: (a) the Actual Cash Value of the stolen or damaged property; or (b) the amount…

Duties after an Accident or Loss Duties after an Accident or Loss are referred to in some policies as “Part E.” As there are duties of an insurance company to…

Types of Endorsements It is not feasible to describe or provide samples of all endorsements because of the variety of state regulations and laws, and the number of insurance companies.…

Towing and Labor Costs This endorsement shows a particular limit of liability per disablement. This would indicate the maximum the company would pay each time the covered auto has to…

Policy Period and Territory Standard wording applies: “The policy period is shown in the Declarations page, and applies only to losses and accidents which occur within the United States of…

Cancellation, Non-Renewal, and Automatic Termination This policy may be canceled during the policy period by the insured at any time.  After the policy is in effect for 50 days, the…

Physical Damages Coverage A definition of loss is a decrease in value or out of pocket expenses to repair the policy holder item. We already know that the victim’s losses…

Broad “All-Risks” Coverage Ocean marine insurance traditionally provided broad coverage out of necessity. In an era before radio and satellite with GPS communication, it was often unclear why a ship…

Wedding Presents Floaters Coverage for a period not exceeding ninety (90) days after the date of the wedding can, according to the marine definition, be considered marine insurance. A special…

Distinctive Features of Personal Inland Marine Insurance Coverage Inland marine floaters generally share these characteristics: Tailored coverage (with available options or endorsements) Appropriate limits (various valuation methods) Coverage for most…

Property Not Covered under Homeowner’s Policies Homeowner’s policies exclude coverage for certain types of personal property. The following exclusions are especially relevant here. Articles Insured Elsewhere The unscheduled personal property…

Coverage on Unscheduled Personal Property When an endorsement is used, the insurer will pay whichever is LEAST of the following amounts when loss occurs to covered property not scheduled in…

Sub-limits Applicable to All Perils Homeowner’s policies are designed to cover the exposures of the typical insured. The dollar amount of coverage is therefore limited for some types of property…

Exclusions Most property insurance policies, even those providing open perils coverage, contain a predictable set of exclusions for flood, earthquake, war, and nuclear reaction. Flood and earthquake are not excluded…

Scheduled Property—Standard Loss Settlement When the standard loss settlement approach applies, as indicated in the form describing covered property, an amount of insurance for each item is stated in the…

Valuation Provision in AAIS Floaters The standard valuation provision in AAIS floaters provides actual cash value coverage like that of the ISO standard approach on all property except fine arts.…

Motorized Vehicles In 2003, ISO made available four new inland marine forms to cover four additional classes of property involving motorized vehicles: Motorized Vehicles for Handicapped Person Form (Form PM…

Coverage C – Covered Property Coverage C provides insurance for personal property of the insured. Special limits apply to some types of property and some property is excluded from coverage.…

Covered Perils under Coverage C Insurance is provided under Coverage C for direct physical loss to personal property from the following sixteen perils: Fire or lightning – The Fire Insurance…

Coverage D – Loss of Use In the event of a loss under Coverage A, such as fire damage to the dwelling, the insured may lose the use of the…

Conditions and Duties of the Insured The conditions applicable to Section I of the HO-3 policy primarily deal with the rights and duties of the insured and the insurer following…

Additional Loss Settlement Conditions Insurer’s Option – This condition gives the insurer the right, after providing written notice to the insured, to repair or replace any part of the damaged…

Comparison of the HO-4 and the HO-3: Since the HO-4 provides insurance for tenants, the policy does not include coverage for the dwelling and other structures provided by Coverages  A…

Comparison of HO-6 and HO-3 Coverage A – Dwelling – Coverage A of the HO-6 applies to the insured’s real property. This coverage is provided on a named-perils basis and…

Section II – Liability Coverage Homeowners Policies meet both the Property and Liability Exposures of a wide range of insured.  The Section I coverage discussed up to this point provides…

Exclusions to Coverage E and F The Liability Coverage in Section II provide broad protection for the insured; however, the exclusions in Section II limit or eliminate coverage for specified…

Exclusions to Coverage E- Personal Liability The exclusions to Coverage E -Personal Liability restricts or eliminates coverage provided for Bodily Injury or Property Damage. These exclusions apply to the following:…

Utilize Loss Control Measures There are various measures that homeowners or business owners can take to protect their homes and businesses from flood, including the following. Elevate the structure Relocate…

Write-Your-Own (“WYO”) Program NFIP flood policies can be issued directly by the NFIP or by a private insurer that participates in NFIP’s Write-Your-Own (WYO) program. Write-Your-Own participating insurers write the…

Eligible Structures There are numerous structures that are considered eligible buildings including: Appurtenant structures—detached garages at the described location that are covered under a fire policy. The policy does not…

Zone Determination A zone is a geographical area shown on a FHBM or FIRM that reflects the severity or type of flooding in the area. Zone determination is one of…

Eligibility Rules for Standard National Flood (“NFIP”) Forms The standard flood insurance policy consists of three separate forms: Dwelling form General property form Residential condominium building association policy (RCBAP) Dwelling…

General Application Procedures The NFIP Flood Insurance Application form, or a similar form for Write-Your-Own (WYO) insurers, must be used for all flood insurance policies except the PRP. The NFIP’s…

Statutory Coverage Limits Maximum flood insurance limits are based on the type of program, whether the property is residential or nonresidential, the size of the residential property (e.g., one-family dwelling…

Covered Building Property (Coverage A)        Flood insurance coverage is limited in areas below the lowest elevated floor (including crawlspaces) depending on the flood zone and date of construction and in…

Definition of Flood Coverage is provided only for “direct physical loss by or from flood,” as evidenced by physical changes to the property. Note that, for coverage to apply, the…

What is not insured by either Building Property or Personal Property Coverage? Paneling, bookcases, and window treatments such as curtains and blinds. Carpeting, area carpets, and other floor coverings such…

Settling Losses Under the Dwelling and Condo (“RCBAP”) Forms The dwelling form and the RCBAP offer the following three methods of settling losses, each of which are used for a…

Flood Insurance Claims Handbook The Flood Insurance Claims Handbook was created by FEMA to help insured’s with the claims adjusting process. It includes three key sections, including the following. What…