Property Insurance Basics Flashcards
6 cards from real Property And Casualty Insurance License practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Property Insurance Basics flashcards as text
What is a 'named peril' policy?
Answer: A policy that covers only the perils specifically listed
A named peril policy only covers losses caused by perils explicitly listed in the policy document.
Replacement cost coverage for personal property pays:
Answer: The cost to replace the item with a new item of like kind and quality
Replacement cost coverage pays the amount needed to replace the damaged or destroyed item with a new one of similar kind and quality, without deducting for depreciation.
Which section of a homeowners policy covers the insured's personal property worldwide?
Answer: Coverage C
Coverage C (Personal Property) protects the insured's personal belongings anywhere in the world, subject to policy limits and conditions.
What does Coverage D (Loss of Use) provide in a homeowners policy?
Answer: Reimbursement for additional living expenses when the home is uninhabitable
Coverage D pays for additional living expenses the insured incurs when a covered loss makes the residence uninhabitable.
What is a 'blanket' property policy?
Answer: A policy with a single limit covering multiple properties or types of property
A blanket policy applies one overall limit to multiple locations or property types, providing flexibility in how coverage is allocated after a loss.
An 'agreed value' clause in a property policy means:
Answer: Coinsurance is suspended because value has been agreed upon in advance
An agreed value clause suspends the coinsurance requirement because both parties have already agreed on the insured value of the property.