Notes about property insurance for NYS Real Estate Exam
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property insurance
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provides protection against most risks to property, such as fire, theft, and some weather damage
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monoline policy
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a policy containing single coverage part plus the common policy conditions & declarations
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package policy
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insurance policy that combines coverage from 2 or more types of insurance (such as property and liability) into 1 policy
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endorsement
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clause in insurance policy detailing an exemption/change in coverage
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liability insurance
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policy that covers civil liabilities to 3rd parties, arising from bodily injury, property damage, or other wrongs due to action or inaction of the insured
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actual cash value
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a method of valuing insured property (includes any type of depreciation)
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replacement cost
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normal cost of exact duplication of property as of certain date
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insurance deductible
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amt of expenses that must be paid out of pocket before insurer will pay any expenses
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umbrella policy
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policy that covers amts above those covered under 1 or more other primary policies, and which does not pay until the losses exceed a certain sum; also called excess insurance
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commercial policy
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covers bodily injury, property damage, physical injury, and advertising injury
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A
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Dwelling coverage
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B
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other structures coverage (10% of A)
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C
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personal property coverage (70-75% of A)
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D
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loss of use
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E
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personal liability coverage
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F
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medical payments coverage
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HO-1
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basic policy; standard insurance against perils
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HO-2
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broad form policy
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HO-3
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special form policy
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HO-5
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comprehensive form
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HO-8
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market value policy; w/cash value coverage
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HO-4
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tenants or cooperative owners policies
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HO-6
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condominium owners policies
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Who may require you to obtain property insurance?
mortgage lender
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What type of insurance professional searches the open market to find the best policy for his client?
independent broker
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Which is the main coverage in any homeowner's policy?
dwelling coverage
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