Podcast
Questions and Answers
What are the three coverages that every fire insurance policy must have?
What are the three coverages that every fire insurance policy must have?
What is a hostile fire?
What is a hostile fire?
Damage to insured property from water used to extinguish a fire is covered by a fire insurance policy.
Damage to insured property from water used to extinguish a fire is covered by a fire insurance policy.
True
Which of the following is NOT covered under the Lightning coverage of a fire insurance policy?
Which of the following is NOT covered under the Lightning coverage of a fire insurance policy?
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What does the Explosion coverage of a fire insurance policy cover?
What does the Explosion coverage of a fire insurance policy cover?
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What are the three common forms of homeowners insurance in Canada?
What are the three common forms of homeowners insurance in Canada?
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What does the abbreviation 'IBC' stand for in the context of homeowners insurance?
What does the abbreviation 'IBC' stand for in the context of homeowners insurance?
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The Homeowners Basic Form (IBC 1151) offers more extensive coverage than the Homeowners Comprehensive Form (IBC 1155).
The Homeowners Basic Form (IBC 1151) offers more extensive coverage than the Homeowners Comprehensive Form (IBC 1155).
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In the context of homeowners insurance, what is the meaning of a 'Dwelling'?
In the context of homeowners insurance, what is the meaning of a 'Dwelling'?
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What is NOT considered to be covered in a homeowners policy's insurance limit for 'Dwelling Building'?
What is NOT considered to be covered in a homeowners policy's insurance limit for 'Dwelling Building'?
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If a homeowner's insurance policy includes coverage for 'Additional Living Expense', the insurer will pay for any expenses incurred by the insured while they are forced to live away from their home due to damage to their dwelling.
If a homeowner's insurance policy includes coverage for 'Additional Living Expense', the insurer will pay for any expenses incurred by the insured while they are forced to live away from their home due to damage to their dwelling.
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A homeowner is entitled to 'Additional Living Expense' coverage if they choose to rent a larger dwelling than their original home, even if the original dwelling was a modest bungalow.
A homeowner is entitled to 'Additional Living Expense' coverage if they choose to rent a larger dwelling than their original home, even if the original dwelling was a modest bungalow.
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What determines the duration of 'Additional Living Expense' coverage under a homeowner's insurance policy?
What determines the duration of 'Additional Living Expense' coverage under a homeowner's insurance policy?
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If a homeowner experiences a loss of rental income due to damage to a portion of their dwelling, their insurance policy will automatically cover the full value of the lost income.
If a homeowner experiences a loss of rental income due to damage to a portion of their dwelling, their insurance policy will automatically cover the full value of the lost income.
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The insured may be entitled to 'Additional Living Expense' coverage if they are denied access to their home due to a government-issued order stemming from a civil authority.
The insured may be entitled to 'Additional Living Expense' coverage if they are denied access to their home due to a government-issued order stemming from a civil authority.
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'Additional Living Expense' coverage includes expenses incurred during a mass evacuation due to a flood event.
'Additional Living Expense' coverage includes expenses incurred during a mass evacuation due to a flood event.
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A homeowner can expect their insurance policy to cover the cost of debris removal, regardless of the total insured amount.
A homeowner can expect their insurance policy to cover the cost of debris removal, regardless of the total insured amount.
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What is the maximum amount of coverage offered by most homeowner's forms for 'Lock Replacement'?
What is the maximum amount of coverage offered by most homeowner's forms for 'Lock Replacement'?
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Homeowner's insurance policies typically cover the cost of tearing out and replacing sections of the building to repair damage caused by a leaky water main.
Homeowner's insurance policies typically cover the cost of tearing out and replacing sections of the building to repair damage caused by a leaky water main.
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What is the maximum amount of the 'Arson Conviction Reward' that most insurance companies offer under homeowner's policies?
What is the maximum amount of the 'Arson Conviction Reward' that most insurance companies offer under homeowner's policies?
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What is the maximum amount of coverage that most homeowner's insurance policies will provide for the theft or unauthorized use of credit cards and debit cards?
What is the maximum amount of coverage that most homeowner's insurance policies will provide for the theft or unauthorized use of credit cards and debit cards?
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Which of the following is NOT covered under the Counterfeit Money coverage of a homeowner's insurance policy?
Which of the following is NOT covered under the Counterfeit Money coverage of a homeowner's insurance policy?
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Homeowner's insurance policies with 'Inflation Protection' automatically increase the insured's coverage amount each year.
Homeowner's insurance policies with 'Inflation Protection' automatically increase the insured's coverage amount each year.
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What is the primary basis for the amount of coverage provided by a homeowner's insurance policy in the event of a loss?
What is the primary basis for the amount of coverage provided by a homeowner's insurance policy in the event of a loss?
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Homeowner's insurance policies generally use 'Actual Cash Value' as the basis of payment for the loss of personal property.
Homeowner's insurance policies generally use 'Actual Cash Value' as the basis of payment for the loss of personal property.
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The 'Actual Cash Value' of a lost item is typically higher than its market value.
The 'Actual Cash Value' of a lost item is typically higher than its market value.
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What is the purpose of the 'Deductible' provision in a homeowner's insurance policy?
What is the purpose of the 'Deductible' provision in a homeowner's insurance policy?
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What is the maximum amount of coverage that most homeowners insurance policies will provide for 'Watercraft' losses?
What is the maximum amount of coverage that most homeowners insurance policies will provide for 'Watercraft' losses?
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A homeowner's insurance policy that covers a dwelling for 75% of the total insurance amount will typically pay 75% of any loss on the same dwelling, even if other insurance policies exist for the same dwelling.
A homeowner's insurance policy that covers a dwelling for 75% of the total insurance amount will typically pay 75% of any loss on the same dwelling, even if other insurance policies exist for the same dwelling.
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What type of coverage is typically considered to be 'bundled' with the 'Dwelling Building' coverage in homeowner's insurance policies?
What type of coverage is typically considered to be 'bundled' with the 'Dwelling Building' coverage in homeowner's insurance policies?
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How is the amount of 'Personal Property' coverage in a homeowner's insurance policy typically determined?
How is the amount of 'Personal Property' coverage in a homeowner's insurance policy typically determined?
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An insured homeowner must have separate coverage for additional living expenses in the event of a loss caused by a windstorm.
An insured homeowner must have separate coverage for additional living expenses in the event of a loss caused by a windstorm.
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Homeowner's insurance policies typically include 'Personal Liability' coverage.
Homeowner's insurance policies typically include 'Personal Liability' coverage.
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What type of insurance policy is designed to cover 'Home Based Businesses'?
What type of insurance policy is designed to cover 'Home Based Businesses'?
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'Single Limit Policies' combine the coverage of Homeowner's policies into a fixed limit, rather than allocating separate limits to each covered peril.
'Single Limit Policies' combine the coverage of Homeowner's policies into a fixed limit, rather than allocating separate limits to each covered peril.
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Study Notes
Insurance Training & Education
- ENSURE is a training and education company
- CAB 1 is a general insurance course
Attendance Poll
- Students are asked if they can hear the facilitator and see the slides.
What Do You Remember?
- Students have three minutes to write 3-4 sentences about what they remember from the previous class.
- Students can provide examples.
- The Forgetting Curve is discussed, noting how reviewing material helps retention.
Insurance Graphic Organizer
- This graphic organizer is for CAIB 1 Chapter 1.
Multi-Point Question
- Every fire insurance policy must have three coverages.
- Students need to explain the three coverages (9 points in total).
Basic Coverages Legislated
- Insurance Acts require three coverages for every fire insurance policy.
- Fire involves visible flame/glow and requires actual ignition/burning.
- Friendly fire (contained) is not covered, while hostile fire (outside limits) is covered.
- Other losses are considered "fire losses" and covered if fire damage to the property directly causes the loss.
- Physical damage/actions by firefighters are covered
Friendly Fire
- Fire contained in proper receptacle.
- No coverage for damage from deliberate friendly fire.
Hostile Fire
- Fire passes outside assigned limits.
- Fire damage to carpeting is covered if the fire is hostile.
Basic Coverages Legislated (continued)
- Physical building damage from firefighters' actions is covered.
- Damage from actions to stop fire spreading (to adjoining buildings) are covered.
Lightning
- All insurance policies covering fire MUST have coverage against direct lightning.
- This includes damage to chimneys, buildings, roofing, siding, fences, TV antennas, and communication towers.
Explosion
- Every fire policy covers explosions from natural, coal, or manufactured gas ignition.
- Concussion explosions are not covered in fire policies
- Explosions from internal working pressure items like water heaters/boilers are not covered.
- Policies must meet MIN established.
Chapter 2: Habitational Insurance
- Homeowners forms are the most common investment people make.
- The IBC (Insurance Bureau of Canada) developed standardized forms for insurance companies.
- Insurers use IBC forms as a foundation for their own policies; Insurers may broaden policies, or remove exclusions to have competitive advantages.
- Homeowners forms have changed in past years. In the past, they were based on the risk profile of individuals, whereas now they are more generalized.
- The risk profile includes if an individual owned a home, or occupied the home for all year-round.
- Current forms now cover more risks such as if multiple families live in the home, or if the home is occupied during construction.
- Policy benefits are only afforded to individuals who are occupants of the home.
Effective Selling method for Coverages
- Discuss similarities before looking at specific coverages.
- Formats were modified in 1979, removing jargon/legal phrases to improve understanding.
- Structure is common, so brokers can quickly find client information.
- There are two coverage sections: Section 1 - Property Coverages, and Section 2 - Liability Coverages.
Policy Definitions Uniform
- Insured's spouse: policy in one name; spouse may make a claim.
- Relationships: avoid coverage gaps by establishing relationships of parties occupying dwellings with named insureds.
- Add partner/relative to existing policy or have a separate policy.
- Broker is able to increase coverage limits for personal property.
Insured, Spouse of Insured, Relatives
- Insured: Named as insured on Coverage Summary page.
- Spouse: Married man/woman, or have entered into a voidable marriage, or cohabiting couple for 3 years.
- Relatives: Children, parents, grandparents, and family members living with insureds.
Policy Definitions Uniform (continued)
- Any party in their care under 21 years old that are not related to the insured.
- Students enrolled/attending school/college/university, depending on Named Insured/spouse for maintenance.
- Students temporarily living away from principal residence are covered.
Dwelling
- Homeowners forms cover owner-occupied dwellings, not business use.
- Buildings are considered dwellings if they are occupied by the homeowner (or by an individual on the same property)
Premises
- Homeowner coverage forms don't extend coverage beyond the insured’s premises.
- Land within lot lines where the building sits is covered under the premises definition.
Insurance Claim Exposure
- Section 1 - Property Coverages:
- Coverage A - Dwelling Building
- Coverage B - Detached Private Structures
- Coverage C - Personal Property
- Coverage D - Additional Living Expense.
- Section 2 - Liability Coverages:
- Coverage E - Personal Liability
- Coverage F - Voluntary Medical Payments
- Coverage G - Voluntary Payment for Damage to Property
- Coverage H - Voluntary Compensation for Residence Employees
Coverage A - Dwelling Building
- Value of structures (garage, greenhouse, sun deck) attached to the dwelling (insured) with limits bought for the dwelling.
Coverage A - Dwelling Building (continued)
- Limit for dwelling building: Value of outdoor equipment (permanent and affixed) with limits for concrete embedded items, children's swings, slides, etc, and lawn sprinklers.
- Coverage only applies to the insured's premises.
Coverage A - Dwelling Building (continued)
- Outdoor swimming pool/pool equipment is covered based on limit within the dwelling building's limit.
- Supply/materials in/adjacent to premises for construction/alteration are covered.
- Coverage for materials/supplies in use if dwelling is under construction.
- Coverage for materials/supplies while under construction.
- Only for building materials on insured premises.
Coverage A - Dwelling Building (continued)
- Building fixtures/fittings (temporarily removed) are covered but not for seasonal storage
- Ex: Window shutters/doors with windstorm/hail damage
- Storm doors/windows stored away from premises are covered for temporary removal, BUT not for years of storage or disuse.
- Trees, shrubs, and plants. Coverage may include up to 5% of insured dwelling limit on outdoor trees/shrubs/plants on premises and will be limited to; Fire, Lightning, Explosion, Impact (aircraft/land vehicles), Riot, Vandalism, malicious act, and windstorm/hail losses
Coverage B - Detached Private Structures
- Structures/buildings separated from dwelling by clear space.
- If connected, then fence/utility line/similar connection only.
Personal Property (general)
- Includes dwelling contents, clothing, personal items, and other property owned/used on the premises; items usual for ownership/maintenance of a dwelling.
Three Insuring Agreements for Personal Property
- Slides moved to CAIB 1 Chapter 2 Insurance Graphic organizer (ICO).
- Access to ICO is through student portal.
- Submit ICO activity to facilitator or ask questions in class.
- Relevant videos on ICO answers are available in student portal.
Categories of Special Limits of Insurance
- Business Property ($2,000) : Covers all books, tools, instruments for business/profession/occupation and covers property while on premises. Other business property, stocks/bonds/notes/other docs, stock/equipment kept on insured's premises; samples/goods for business/stock items for sale are not covered.
- Securities ($2,000): Stocks/bonds/securities up to $2,000; documents must be stored in a safety deposit box in financial institutions.
- Property of students temporarily away: $2,500.
- Money/bullion: $200.
- Garden-type tractors ($5,000)
- Watercraft ($1,000).
- Computer software ($2,500). Cost, not hardware. Excludes data gathering/assembling.
- Spare auto parts ($1,000).
- Stolen Property: Jewellery/watches/gems/fur/fur trimmed garments ($2,000). Numismatic property/coin collections ($200); manuscripts/stamps/philatelic property/stamp collections ($1,000), collectible cards/sports cards ($1,000), bicycle/equipment accessories ($500). Limits on total values of classes.
Stolen Property (continued)
- Jewellery ($25,000) covered at full value with loss by fire/explosion/other peril.
- Parties with expensive property must consider additional coverage for off-premises exposure.
IBC Homeowners Forms
- Used by brokers to make changes to forms.
- Brokers need to know individual insurer's policies.
- Special limits of Insurance Summary Form used during sales presentation.
Coverage D - Additional Living Expense
- Additional living expenses are covered.
- Fair rental value is covered.
- Civil authority is covered.
Additional Living Expense (continued)
- Additional living expenses are covered when damage to dwelling makes it unfit for occupancy.
- Insured must move out during repairs.
- Additional living expenses cover added costs for lodging/food for the family, and transport costs to/from school.
- Insurers pay only necessary living expenses only.
- Costs can include lodging/food and transportation expensess.
Additional Living Expense (continued)
- Claim payments are limited to costs to maintain a normal living standard during repair/rebuilding of the dwelling.
- Time period is decided by insurer based on the reasonable time frame to repair the dwelling.
- Claims are limited to what insurers decide is fair in a reasonable time frame.
Fair Rental Value
- Loss of rental income is covered if property is unfit for occupation.
- Payment for a reasonable time for proper repair/replacement is covered.
- No payments for expenses if property is unfit for occupancy.
- Costs such as electricity/water is deducted from the payment amount.
Access Prohibited By Order of Civil Authority
- If property access is prohibited by civil authority, additional living expense/rental value is covered for up to 2 weeks.
- This is based on events such as riots, evacuations, and hazardous situations.
Access Prohibited By Order of Civil Authority (continued)
- Coverage is excluded for mass evacuations due to floods, waves, tides, and breakout out/overflow of water (natural or man-made).
- No coverage for earthquakes, wars, invasions, foreign enemies, or hostilities.
- No coverage for nuclear incidents/explosions, nuclear liability acts, or contamination by radioactive materials.
Extensions of Coverage Same for All Forms
- Debris removal, additional 5% if payable loss is more than insurance amount.
- Property removed for protection from loss/damage is covered.
- Moving to another home for property in transit for insurance is covered;
- Canada limits for 30 consec.days, until policy expires, or is terminated.
- Fire dept. expenses. forms provide up to $1,000, but deductible amount don't apply.
Extensions of Coverage Same for All Forms (continued)
- Change of temperature damage to personal property from temperature change related to dwelling or equipment.
- Food in spoil due to wiring damage; Vandalism to building.
- Actual physical damage to building/equipment from insured peril.
- Property in dwelling at time of loss is covered.
- Household plants freezing is NOT covered from malfunction of insured's furnace.
Extensions of Coverage Same for All Forms (continued)
- Freezer food up to $2; food in freezer on premises when loss/damage due to power failure, accidental interruption of electrical power (on/off) by insured, not if loss due to a planned outage.
- No coverage for spoiled food from electrical issues (circuit breakers/fuse operations, or power loss due to accidental or not) and is not covered.
- Insurers pay reasonable expenses for recovery/preservation of food in freezer during repair (no deductible).
Extensions of Coverage Same for All Forms (continued)
- Lock replacement costs; up to $500 to replace or change existing keys to locks on the main dwelling if they were stolen and reported to authorities.
- Insurer will decide to replace lost keys or re-key locks, (no deductible).
- Repair walls/ceilings/other parts of insured buildings that were torn apart (for damage repairs) to pipes, domestic appliance repairs from water damage.
- Cost of tearing out and replacing parts of building for damage from pools/water mains is NOT covered.
- Arson Conviction Reward (a reward will be paid up to $1,000).
- Credit/Debit Cards; up to $1,000 during policy period, for damage to credit cards or theft of card, or usage of cards when loss/theft by others is covered - with specific conditions.
- Credit cards (MasterCard, VISA, gas, grocery, department stores)
- Covers amount from theft/unauthorized use of cards issued/registered to insured.
- Insured's legal obligation to make payment (in card contract)
- Insured complied with all conditions of card
Inflation Protection
- Insurer automatically increases the amount if loss occurs during the policy period due to inflation; policies are based on inception date, most recent renewal/anniversary date, or most recent change in insurance amount.
Basis of Claim Payment Same for All Forms
- Indemnity amount paid is limited to the insured's financial interest in the lost/damaged property.
- Amount is limited to the applicable limit for the given specific instance (dwelling building or detached private structures)
- Loss/damage to insured building: Insurer will pay for cost of repairs or replacement (without depreciation).
Basis of Claim Payment Same for All Forms (continued)
- Completed repair must be in a reasonable time period.
- Similar location.
- Similar occupancy.
- Similar material quality.
Dwelling Building's Coverage Basis
- Insurers will pay for repairs/replacement costs for dwelling building's coverage, even if the costs exceed the insurance amount.
- This pays up to the inception date amount, latest renewal date amount, or as applicable.
- Insurers must consider an increased value if there has been an amount increase due to inflation.
- Notification to insurers (if there are any modifications to the dwelling building) is required within 90 days from when work or improvements commenced
Basis of Claim Payment Same for All Forms (continued)
- If the building isn't repaired/replaced, the payment is based on the actual cash value of the part or parts insured.
- Municipal by-laws; serious losses, municipalities may require the use of upgraded construction materials for repairs.
- Extra costs to meet by-laws is not covered.
Electronic Media
- Payment is limited to cost of reproducing lost/damaged media (duplicates/originals) from previous media generation; no payment for cost to gather/assemble info/data for reproduction (records, drawings/card index systems).
Personal Property - Settlement Basis
- Settlement for other personal property is on replacement cost basis.
- Excluding irreplaceable items (antiques/fine arts/paintings/statuary) and age/history of items.
- Items not properly maintained or items not in original condition are not covered.
- Items of clothing not in fashion anymore are not covered.
- Costs are settled using actual cash value basis.
Replacement Cost Basis Settlement
- Insurer pays repair/replacement costs of the lower of two options:
- Cost to repair property (similar quality) or Cost to replace with similar quality/usefulness
Actual Cash Value
- Actual cash value = cost of lost/damaged property LESS depreciation.
- Condition of the property immediately before the damage must be considered.
- Normal life expectancy of the property must also be considered.
Pair and Set
- Loss/damage to one item of a pair/set is considered a loss in terms of total value of the item or set.
Parts
- Loss/damage to one or more parts of a property is considered the loss/damage of that specific part, including installation.
- Examples such as carpeting/tiles/linoleum installed.
Deductible
- Applies to all property losses regardless of property type involved.
- Only one deductible may be applied to total claim when involved property of multiple types.
- Limit applies to property losses exceeding deductible amount; amount exceeding deductible amount covered.
Halfway Done!
- A visual representation of halfway completion.
Poll
- A visual for a poll.
Insurance Under More Than One Policy
- IBC homeowners forms have special limits of insurance for specific personal property.
- Additional coverage can be purchased, but not if an existing policy with an insufficient amount exists on the same property or items.
Section 2 - Liability Coverages
- Liability coverage is on all homeowners forms (same for each form)
- Replacement cost basis for dwelling/detached private structure/personal property (limits must correctly show property's replacement cost)
- Determine insurance amount for Section 1 - Property Coverages.
- Determine replacement cost of dwelling.
- Uses a valuation guide to determining replacement cost.
- Other Section 1 coverages are percentages of the total.
- Coverage amounts for additional limits are usually 20% of coverage A-Dwelling, personal liability, voluntary medical payments, and damage to property.
Common Approaches
- Coverage A - Dwelling Building: Dwelling replacement cost is $200,000.
- Coverage B - Detached Private Structures: Insurer must be given number/type/value. Amount must also equal, or exceed, 10% of the limit of Coverage A (Dwelling Building).
- Coverage C - Personal Property: Insureds should have coverage of 90-100% of the dwelling value to have equivalent coverage. If not, insurers may require to have it as a supplement.
- Coverage D - Additional Living Expense; coverage for additional living expenses is usually 20% of the dwelling coverage amount. Coverages such as personal liability, voluntary medical payments, and voluntary compensation are usually also available.
- Covers sold (as package); if you have options to delete, insurers may not allow.
Single Limit Policies
- Individual insurance limits for coverages A-D are commonly combined into one limit.
- Advantage: if loss exceeds one limit, all other limits may be insufficient.
- Not likely if valuation guide was used.
Important Terms So Far
- Students have two minutes to write down one important term from the class.
Section 3 - Homeowners Form
- Three Homeowners Forms Coverages
- Homeowners Basic Form (IBC 1151)
- Homeowners Broad Form (IBC 1153)
- Homeowners Comprehensive Form (IBC 1155)
- Insurers change IBC wordings.
Homeowners Basic Form (IBC 1151) Coverages
- Peril 1: Fire/Lightning: Residential fires are nearly half of all fires. Lightning damages coverages.
- Peril 2: Explosion: Broad explosions from hot-water heaters or domestic boilers; Extreme pressures from water or steam damage pipes and may restrict the flow (as water or steam is trapped). Structural damage due to water or steam from explosions on the property is NOT covered
- Peril 3: Smoke; damage due to sudden/unusual/faulty operation of heating/cooking units, not for fireplaces. Smoke damage from heating furnaces in the basement are covered.
- Peril 4: Falling Objects; Damage to the dwelling from falling objects. Personal property loss due to falling objects
Homeowners Basic Form (IBC 1151) Coverages (continued)
- Peril 5: Impact by Aircraft/Land Vehicle; coverage for dwellings near airports and along street corners that are more vulnerable from loss from weather issues. Coverage for impact by vehicles is covered from insured/employees. Animals are not insured.
- Peril 6: Riot; Coverage for damage from riot.
Homeowners Basic Form (IBC 1151) Coverages (continued)
- Peril 7: Vandalism/Malicious Acts;
- Loss/damage during construction/vacancy.
- Construction sites/vacant buildings are not covered during extended unsupervised periods, and damage is expected.
- Intentional loss/damage is caused by insured/children/insured person.
- Theft/attempted theft (covered by Peril 12).
Homeowners Basic Form (IBC 1151) Coverages (continued)
- Peril 8: Water Damage; Covers losses due to
- Sudden/accidental water escaping from watermain.
- Sudden/accidental water/steam escape from plumbing.
- Sudden/accidental water from domestic water container (inside or outside the dwelling, not if freezing occurs).
- Water entering through openings from a sudden/accidental insured peril other than water.
- Peril 8: NO COVERAGE: Exceptions applied for freezing (during heating season or if home is unheated for extended periods - more than 4 days straight).
- Continuous/repeated water seepage/leakage is not covered.
- Backing up or other issues from sewer/sump/septic tank.
- Ground water and surface water is not covered if water collects or rises.
- Shoreline ice build-up/water-borne ice/other objects (due to wind) are not covered;
- Water main is not covered.
- System/appliance (from which water escaped) is not covered.
- While building is under construction/vacant (regardless of permission).
Homeowners Broad Form (IBC 1153)
- Combines coverage of the Homeowners Basic Form (IBC 1151), and Homeowners Comprehensive Form (IBC 1155).
- Covers dwelling/detached private structures on an All Risks basis.
- Provides coverage for property comparable to the coverage under the Homeowners Basic Form.
Homeowners Comprehensive Form (IBC 1155)
- Broadest form of habitational coverage.
- Covers all property losses as "All Risks," including potential loses not listed in the Homeowners Basic Form.
Homeowners Comprehensive Form (IBC 1155)
- Losses covered; loss/damage to both dwelling and personal property (fireplace smoke, roof collapse, impact from vehicle driven by insured).
- Property not insured; buildings/structures in whole/part for business/farming, property at fairgrounds, property acquired/kept/stored/transported that are subject to forfeiture; Evidence of debt/title.
Homeowners Comprehensive Form (IBC 1155) - Loss/Damage Not Insured
- Sporting equipment; Golf clubs/skis broken during use, covered when damaged in a fire, accident or insured peril.
- Animals, birds, and fish are covered; unless loss happened due to a peril other than from aircraft or land vehicle impact on an animals/birds/fish.
- Property seized/confiscated - not covered unless it is destroyed to prevent fire.
- Scratching/abrasion/chipping - covered if from a peril, accident to land vehicle/theft, and other attempts;
- Loss/damage due to ice/snow/sleet from wind/hail storms is considered a risk.
Homeowners Comprehensive Form (IBC 1155) - Loss/Damage Not Insured (continued)
- Wear/tear/deterioration/defect/mechanical breakdowns.
- Inevitable losses from normal use (frayed carpets, worn upholstery, sagging chesterfields).
- Warranties issues, not covered due to defect/mechanical breakdowns; example: dishwashers, garage door openers, etc..
- Cost of making faulty materials or workmanship; exclusion: faulty material or workmanship that doesn't meet quality standards of the dwelling.
Homeowners Comprehensive Form (IBC 1155) - Loss/Damage Not Insured (continued)
- Setting/expanding/contracting of materials/buildings; moving/expected earth movement.
- Cracks in basement floors/foundation and walls are not covered.
- Loss/damage if dwelling is knowingly vacant for 30+ consec. Days is not covered.
Homeowners Comprehensive Form (IBC 1155) - Loss/Damage Not Insured (continued)
- International/criminal acts by an insured person is not covered.
- Loss/damage to personal property where the process or work involves application of heat will not be covered. Exceptions exist.
Water damage
- Other exclusions based on insured/uninsured conditions or other factors.
Other exclusions exist, including but not limited to: damage from birds/vermin/rodents/insects, smoke from agricultural smudging/industrial operations; loss or damage due to snowslide/earthquake/landslide, and other factors of property.
Special Policies/Endorsements
- Watercraft.
- Personal computer.
- Coin and stamp collections.
- Jewelry/furs.
- Antiques.
- Fine arts.
- Cameras.
- Silver/gold/pewterware.
- Musical instruments.
- Bicycles; and sporting equipment.
Insuring Home-Based Business
If a home-based business is covered, then a separate policy is required for business property or items.
Quiz
- A quiz to review the material.
Questions
- A section for questions about the material.
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Description
This quiz covers essential topics from the CAIB 1 general insurance course, focusing on key concepts like coverages in fire insurance and the Forgetting Curve related to material retention. Participants will also reflect on prior class learning and assess their understanding of insurance regulations.
