ANTIQUE AND CLASSIC AUTOMOBILE COVERAGE
Available when a vehicle is owned more for show than use. An antique automobile is defined in the automobile rate manual as a motor vehicle of the private passenger type; more than 25 years old; maintained solely for use in exhibitions, club activities, parades and other functions of public interest; and occasionally used for other purposes. It may not be used primarily for the transportation of passengers or goods. Liability rates are generally much less than the manual liability rate due to the limited use of such cars. Physical damage coverages are insured on a stated-amount basis. Generally, the policy covers risks of physical loss or damage to the car from external causes (comprehensive), subject to a deductible
AUTO MEDICAL PAYMENTS COVERAGE
Reimburses insureds for medical and/or funeral expenses arising out of accidents occurring while they are in or are entering/exiting a vehicle.
AUTOMOBILE LIABILITY COVERAGE
Insures against third-party claims arising from alleged bodily injury or property damage to members of the public from operations of motor vehicles.
Insures the owner against loss from collision or upset of covered motor vehicles. There are very few exclusions.
Insures described vehicles against a cause of loss other than by collision or upset. Examples are fire, windstorm, flood, earthquake, vandalism and theft. Glass breakage, falling objects and collision by bird or animal are also covered.
AUTOMOBILE LIABILITY EXCESS INDEMNITY POLICY
Provides excess limits of bodily injury and property damage liability coverage. It is designed for persons who have been able to secure only minimum limits of automobile liability insurance through an assigned risk plan or as voluntary risks. An important policy requirement is that underlying or primary coverage must be kept in force at the declared limits of insurance.
Provide coverage for physical damage, third-party claims and medical expenses. Hull (physical damage) coverage is written for all types of exposure: on the ground; in flight; not in flight; not in motion. Aircraft liability coverages include bodily injury (excluding passenger liability), passenger liability, and property damage liability, on a split- or single-limit basis. Medical payments coverage may be provided if passenger liability is purchased.
WATERCRAFT AND YACHT COVERAGE
Insures yachts, sailboats and motor boats on a named perils or an all risk-type basis within the authorized navigational limits stated in the policy. The policy also covers the legal liability of the insured to others because of collision damage to other vessels. The insured has the option of adding protection and indemnity coverage and Longshore and Harbor Workers Compensation Act coverage to the basic hull coverage.
ALL-TERRAIN VEHICLES COVERAGE
All-terrain vehicles have four, six or eight wheels, depending on the type and model. The wheels can be fitted with balloon tires, crawler tracks or a combination of tires and tracks. While there is a limited amount of on-premises liability coverage for ATVs under homeowners policies, complete protection is purchased on special combination risks of direct physical loss, physical damage and liability policies. The coverage provided by these specialized recreational vehicle policies is not intended for vehicles that are driven on public highways
MOUNTAIN BIKES/DIRT BIKES COVERAGE
Mountain bikes and dirt bikes are a type of motorcycle adapted for riding on mountain terrain or "off road" on dirt trails or cross country. The coverage is usually written by insurers specializing in motorcycle coverage, but the nature of the risk is often more hazardous than the smooth conditions of public highways. Policies are rated according to the size, power and age of the vehicle as well as the age of the driver. Highly modified vehicles often are not written. Policy includes physical damage and liability perils.
Available under specialty combination coverage policies insuring owners of snowmobiles against liability and physical damage losses arising from the ownership and use of such vehicles. Coverage may also be written under automobile policies that are modified by endorsement to extend their coverage to snowmobiles. Another source of coverage is via snowmobile endorsements attached to homeowners policies. For an additional premium, the homeowners personal liability coverage applies to the ownership and use of such equipment.
The explosion of persons accessing the Internet has motivated many to use the medium to promote their products and services. Cyberliability refers to the liability hazards to which an insured is exposed in the digital world represented by computer technology, but more particularly to the access to the vast flow of information available on the Internet. Home-based businesses with an internet presence should be particularly aware of this need.
FOREIGN INSURANCE REQUIREMENTS
Americans require automobile insurance for owned or rented automobiles that complies with applicable local laws. U.S.-based auto insurance does not extend to any country other than Canada. Homeowners policies may be adequate for the foreign traveler because personal belongings and liability exposures are covered globally. However, the person living abroad in a specific location for an extended period should review potential gaps in coverage due to that particular location's laws and regulations.
KIDNAP/RANSOM EXTORTION COVERAGE
An important coverage for high profile individuals especially if they travel outside the United States. Coverage normally includes not only the cost of the ransom but also security aids.
AFFORDABLE CARE ACT COVERAGE (ACA)
Individual health insurance available through government-developed portal websites must provide certain minimum level of care as defined in the Act. The Act also placed the same minimums on any coverage offered through the employer-controlled health insurance plan. The government does not provide the coverage; it provides only the exchange websites through which clients can compare coverage, and the government also establishes the minimum coverages that can be offered. Insurance companies can provide coverage in excess of the minimum.
Types of policies offered by various insurers to individuals and families include hospital insurance, medical expenses, and supplemental medical insurance. Many individual policies include high deductibles along with a health saving plan option that allows the insured to set aside tax-free money to pay for expenses subject to the deductible.
SUPPLEMENTAL HEALTH EXPENSES COVERAGE
Provides cash payments for expenses that are incurred because of a health-related situation but that are not covered by a health insurance policy. Transportation, childcare, deductibles and unexpected living expenses are examples.
DISABILITY INCOME INSURANCE
Accident and sickness insurance, as opposed to hospitalization insurance, and is usually available only to those earning an income. It provides monthly income for disability resulting from accident or sickness.
Particular attention should be given to adequately insuring the money value of all income providers within a family or household, to make sure the family or household has sufficient funds for living expenses, mortgages, loans, education and other financial needs in the event of the death of any income provider.
DWELLING PROPERTY BASIC FORM
Covers loss by fire or lightning and internal explosion, with other basic causes of loss plus optional vandalism and malicious mischief. There is not a minimum requirement for amounts of insurance.
DWELLING PROPERTY BROAD FORM
Covers the basic form causes of loss plus loss by: breakage of glass; burglars, not including the taking of property; falling objects; weight of ice, snow or sleet; collapse of buildings from stated causes; accidental discharge of water or steam; sudden cracking of a steam or hot water system; freezing; and sudden damage from artificial electrical currents. Company underwriting rules often require minimum limits for dwelling coverage. When there is no dwelling coverage, minimum personal property coverage limits are required.
DWELLING PROPERTY SPECIAL FORM
Applies the same causes of loss to personal property as does the broad form. However, the dwelling coverage is on a loss due to direct physical damage except as excluded basis that is comparable to that associated with the homeowners special form. Company underwriting rules often require minimum limits for dwelling coverage. When there is no dwelling coverage, minimum personal property coverage limits are required.
HO 02–HOMEOWNERS BROAD FORM
Covers a described dwelling, related private structures, unscheduled personal property on and away from the premises, and additional living expense and rental value against loss by fire and other named causes of loss including theft. Personal liability insurance, including medical payments coverage and damage to property of others coverage, completes the package.
HO 03–HOMEOWNERS SPECIAL FORM
Similar to the HO 02 because it covers a described dwelling, private structures and unscheduled personal property on and away from the premises. Additional living expense and rental value is also covered. The dwelling and private structures are covered for loss due to direct physical damage except as excluded. Personal property is covered for fire and other named causes of loss including theft. Personal liability insurance is the same as the HO 02.
HO 04–TENANTS (CONTENTS) BROAD FORM
Very similar to the unscheduled personal property, the additional living expense, and the rental value coverages under the HO 02 and the HO 03 forms. It may be issued to a tenant of a dwelling or an apartment. It is also available to insure an owner-occupant of a dwelling, or of a building containing an apartment, who is not otherwise eligible for a homeowners policy. Liability protection is the same as the HO 02.
HO 05–HOMEOWNERS COMPREHENSIVE FORM
Insures against risks of direct physical loss to covered structures and also to unscheduled personal property. The protection is subject only to the exclusion of named sources of loss. Liability protection is the same as the HO 02.
HO 06–CONDOMINIUM UNIT-OWNERS FORM
Provides coverage for the defined property for which a unit-owner is responsible to insure under the condominium association bylaws and activities of the owner of a condominium unit. The coverage is comparable to that afforded an apartment tenant under a tenants (contents) broad form, but modified for the special conditions identified with condominium living. This form meshes with insurance carried by a condominium association for the structure and the risks jointly shared by all of the unit-owners. Loss assessment coverage, reimbursing the insured for his or her share of an uninsured loss to collectively owned property, is an option.
HO 08–HOMEOWNERS MODIFIED COVERAGE FORM
Available to provide limited coverage on a package basis for older dwellings to which other homeowners forms are not adaptable, and for insurance buyers who judge its protection more practical for their needs. Subject to the limit of insurance purchased, dwelling coverage is no more than functional replacement cost instead of true replacement cost. If not repaired or replaced, coverage is no more than market value. Theft of personal property is limited to $1,000. Liability coverage is included.
HOMEOWNERS SPECIAL LOSS SETTLEMENT ENDORSEMENT
Modifies the replacement cost provision that requires the dwelling limit of insurance to be 80% or more of dwelling replacement cost in order to be settled on a replacement cost basis. This endorsement allows the percentage to be as low as 50%. This could be an excellent product to use in gradually bringing a home's limit up from actual cash value basis to replacement cost basis
INFLATION GUARD PROTECTION
Provides automatic increases in insurance limits under Coverages A, B, C and D when attached to a homeowners policy that includes dwelling coverage. Annual increases may be fixed at 1% or at higher percentages multiples. Some companies offer endorsements geared to construction cost indexes.
MOBILE HOME ENDORSEMENT
Attached to a Homeowners HO 02, HO 03, or an HO 04 when the dwelling is a mobile home instead of a site-built home risk. Items that are considered personal property in other forms are considered dwelling because they are permanently installed, built-in or attached. Because this reduces the exposure under personal property coverage, the respective coverage limits should be adjusted accordingly.
PERSONAL PROPERTY REPLACEMENT COST ENDORSEMENT
Valuation is available to convert adjustment under Coverage C of homeowners policies from an actual cash value basis to full present replacement cost. This is a very important endorsement to recommend because most insureds will not want to replace old with old.
CAMERAS AND PHOTOGRAPHIC EQUIPMENT COVERAGE
Includes cameras, projection machines, films, lenses and articles of related equipment that are scheduled with specified amounts of insurance. Company rules often provide for limited blanket coverage on one or more kinds of equipment, e.g., an additional 10% of the total scheduled items.
FINE ARTS COVERAGE
Insures paintings, oriental rugs, rare tapestries, valuable figurines and the like. Losses are settled on an agreed value basis, the insurance limit shown for each scheduled article based on bill of sale or the appraised value.
GOLF EQUIPMENT COVERAGE
Available for golf clubs, golf clothing and similar equipment belonging to the named insured. Coverage is also applicable to other clothing belonging to the named insured while it is kept in a locker located in a clubhouse or other building used in connection with golfing.
JEWELRY AND FURS COVERAGE
Includes items of jewelry, furs and garments trimmed with fur or consisting principally of fur but only when listed in a schedule. Coverage is subject to the amount of insurance scheduled that must be based on a bill of sale or a jeweler's or furrier's appraisal.
MUSICAL INSTRUMENTS COVERAGE
Available only when the instruments are not used professionally. Insurance for paid performance requires removal of the restriction and substantial additional premium. Careful attention to the subject in the application is essential.
OTHER CLASSES COVERAGE
There are other classes of personal property that various insurers may cover under homeowners scheduled property endorsements or personal property policies. When discussing homeowners coverage with insureds, it is important to ask about the existence of property that is subject to limited coverage under the basic policy provisions. There is a clear need for scheduling valuable stamp or coin collections, silverware, furs, jewelry, paintings and similar property for its full value.
Includes silverware, silver plate, gold plate, pewter and platinum among the eligible objects. They may be insured on either a scheduled or blanket basis. It is often practical to arrange blanket coverage and to reserve scheduling for individual high-value items.
STAMPS, COINS AND PAPER MONEY COVERAGE.
Separate coverage provisions are used for philatelic property (stamps) on the one hand and numismatic property (coins and paper money) on the other, though they are similar. Such items are worth considerably more than their face value.
EMPLOYERS LIABILITY OR WORKERS COMPENSATION COVERAGE
May be required if there are full-time residence employees when the state statutes mandate it. It may also be a good idea for the employer to voluntarily purchase this coverage because of the benefits to the employee and the protections for the employer.
HOME-BASED BUSINESS COVERAGE
Very limited in the Homeowners policy. Business coverage can be added by endorsement. One endorsement expands coverage for only liability and medical payments, but another expands to provide much broader coverages that includes property. Each carrier establishes its own criteria as to the types and amount of business activities they will entertain on a personal lines coverage form. It is very important to also consider the personal automobile implications.
PERSONAL INJURY ENDORSEMENT
Expands the coverage in homeowners personal liability coverage to include personal injury. Personal injury arises from: false arrest, detention or imprisonment, or malicious prosecution; libel, slander or defamation of character; invasion of privacy; wrongful eviction or wrongful entry. This is particularly important for clients who are involved in civic and public service activities.
WATERCRAFT LIABILITY ENDORSEMENT
Expands the limited watercraft liability coverage provided in the Homeowners policy to any watercraft described on the endorsement. This is an important endorsement for those insureds who do not carry a boat owners or yacht policy.
Extends the covered property's homeowners or dwelling protection to include the earthquake and the earth movement associated with volcanic eruption causes of loss. These causes are otherwise excluded.
Covers buildings and personal property on either a replacement cost or an actual cash value basis against direct loss by flood. It is written in areas declared eligible by the Federal Insurance Administrator, and is available in other areas as desired by an insured. (The flood cause of loss is otherwise excluded under most homeowners, dwelling fire, and farmowners forms.) Agents and brokers may arrange insurance directly with the National Flood Insurance Program or with participating insurance companies.
HISTORIC HOME POLICIES
Insurance protection for historic homes is a specialty coverage offered by a few insurers. This product is specifically designed to cover the insurance needs of those owning a home that is architecturally and historically significant. In order to be qualified for coverage, the home must have been nominated or be listed in the federal government's register of historic places, or in a district designated as historic by federal, state or local governments. In many cases, because of historic value or antiquity, the home's replacement cost far exceeds its true market value. The homeowner usually has an option to insure from 40% to 100% of replacement cost value. Other important features in the policy are valued coverage for elaborate and ornate woodwork and open house liability coverage for historic home tours.
Loss of or damage to structures caused by the collapse of underground mines which have been abandoned. It does not include loss or damage caused by earthquake, landslide, volcanic eruption, or collapse of storm or sewer drains. Some states require that mine subsidence be offered in areas containing this hazard.