Types of Property Policies
• Conditions: All dwelling policy form include the following:
*Policy Period
*Insurable interest and limit of insurance
*Concealment or fraud
*Duties after a loss
*Pair or sets
*Appraisal
*Other insurance
*Subrogation
*Suit against the insurer
*Insurers option to repair or replace
*Loss Payment
*Abandonment
*Mortgage Holders
*No benefit to bailee
*Cancellation and nonrenewal
*Liberalization
*Assignment
*Death
*Nuclear Hazard
*Recovered property
*Volcanic eruption
• Policy Period: The policy only applies to losses that occur during the effectivedates.
• Insurable Interest and Limit of Insurance: If more than one person has insurable interest
in the property, the insurer will not be liable for more than theinsured's interest in the loss or
damaged property.
• Loss Settlement: Losses will be valued as the least of the following:
*The actual cash value of property at the time of loss
*The policy limit
, *The amount necessary to repair or replace the property
*The amount reflecting the insured's interest in the property at the time of loss
• Pair or Set: A clause in many property and inland marine policies that provides that the
insurer is not obligated to pay for the total value of a set of insured items if only one item has
been lost, damaged, or destroyed. The loss settlement would be based on the reasonable and
fair proportion that the lost or damaged part bears tothe total value set.
• Other Insurance and Service Agreement: If the other fire Insurance applies tothe same loss,
the insurer is liable obnly for the proportion of the loss that the limit of insurance bears to the
total fo all insurance.
• Suit against the insurer: No suit may be brought against the insurer unless the insureed has
fully complied with all policy conditions and the action is started within the 2 years(24 months
) of the date of loss.
• Insurer's option to repair or repalce: The insurer has the option to repair or replace any
part of damaged property with like property by providing written noticeto the insured within
30 days from receiving signed proof of loss.
• Loss payment: Losses will be paid within 60 days of receiving proof of loss andcoming to
an agreement with the insured as to the amount payable.
• Cancellation and Nonrenewal: 10 Day's advance notice is required if the policy is canceled
for nonpayment of premium or for any other reason if within the first 60 days of covergae.
After 60 days , or if the insurer plans to nonrenew covergage,
at least 30 day's notice of cancellation is required. The insurer can cancel the policy midterm
only because of misrepresentation of material fact or if the risk haschanged.
• Liberalization: If the insurer makes any change that broadens coverage in thepolicy
edition during the policy period or within 60 days before the effective date, these changes will
automatically apply, without needing to be endorsed to the policy.
• Death: In the event of of an insured's death, the legal representatives of the deceased
insured will be considered an insured as respects to covered property.
• Nuclear Hazard: Losses caused by nuclear hazard will not be considered byfire,
explosion, or smoke.
• Recovered Property: If any property is recovered in which there has already been a loss
payment made, the insured has the option of taking the property and returning the mount paid,
or giving the property to the insurance company.
• Automatic Increase in Insurance: Is an endorsement that may be added toa dwelling
policy to increase the amount of insurance by an annual percentage tooffset the effects of
inflation. This endorsement requires additional premium.
• Homeowners Policy: Is similar to the dwelling policy but includes liability cov-erage.
• Conditions: All dwelling policy form include the following:
*Policy Period
*Insurable interest and limit of insurance
*Concealment or fraud
*Duties after a loss
*Pair or sets
*Appraisal
*Other insurance
*Subrogation
*Suit against the insurer
*Insurers option to repair or replace
*Loss Payment
*Abandonment
*Mortgage Holders
*No benefit to bailee
*Cancellation and nonrenewal
*Liberalization
*Assignment
*Death
*Nuclear Hazard
*Recovered property
*Volcanic eruption
• Policy Period: The policy only applies to losses that occur during the effectivedates.
• Insurable Interest and Limit of Insurance: If more than one person has insurable interest
in the property, the insurer will not be liable for more than theinsured's interest in the loss or
damaged property.
• Loss Settlement: Losses will be valued as the least of the following:
*The actual cash value of property at the time of loss
*The policy limit
, *The amount necessary to repair or replace the property
*The amount reflecting the insured's interest in the property at the time of loss
• Pair or Set: A clause in many property and inland marine policies that provides that the
insurer is not obligated to pay for the total value of a set of insured items if only one item has
been lost, damaged, or destroyed. The loss settlement would be based on the reasonable and
fair proportion that the lost or damaged part bears tothe total value set.
• Other Insurance and Service Agreement: If the other fire Insurance applies tothe same loss,
the insurer is liable obnly for the proportion of the loss that the limit of insurance bears to the
total fo all insurance.
• Suit against the insurer: No suit may be brought against the insurer unless the insureed has
fully complied with all policy conditions and the action is started within the 2 years(24 months
) of the date of loss.
• Insurer's option to repair or repalce: The insurer has the option to repair or replace any
part of damaged property with like property by providing written noticeto the insured within
30 days from receiving signed proof of loss.
• Loss payment: Losses will be paid within 60 days of receiving proof of loss andcoming to
an agreement with the insured as to the amount payable.
• Cancellation and Nonrenewal: 10 Day's advance notice is required if the policy is canceled
for nonpayment of premium or for any other reason if within the first 60 days of covergae.
After 60 days , or if the insurer plans to nonrenew covergage,
at least 30 day's notice of cancellation is required. The insurer can cancel the policy midterm
only because of misrepresentation of material fact or if the risk haschanged.
• Liberalization: If the insurer makes any change that broadens coverage in thepolicy
edition during the policy period or within 60 days before the effective date, these changes will
automatically apply, without needing to be endorsed to the policy.
• Death: In the event of of an insured's death, the legal representatives of the deceased
insured will be considered an insured as respects to covered property.
• Nuclear Hazard: Losses caused by nuclear hazard will not be considered byfire,
explosion, or smoke.
• Recovered Property: If any property is recovered in which there has already been a loss
payment made, the insured has the option of taking the property and returning the mount paid,
or giving the property to the insurance company.
• Automatic Increase in Insurance: Is an endorsement that may be added toa dwelling
policy to increase the amount of insurance by an annual percentage tooffset the effects of
inflation. This endorsement requires additional premium.
• Homeowners Policy: Is similar to the dwelling policy but includes liability cov-erage.
