Homeowners Insurance CE

Early methods of transferring or distributing risk were practiced by _____________ ________________ traders as long ago as the 3rd and 2nd millennia BC, respectively.

Profoundly shaken by the Great Fire, Barbon promptly opened an office “to insure buildings.” This venture was apparently successful, because in _______ he founded a partnership and established England’s first fire insurance company, The Fire Office, to insure brick and frame houses.

If the homeowner lives in an area that is likely to flood, the mortgage lender will also require the homeowner to purchase _________________________

Flood insurance available for rents also has a __________ waiting period before coverage takes effect.

Generally, if one purchases coverage on a replacement cost basis and insures a home for at least _______ of its replacement cost, the insurance will automatically be issued on a replacement cost basis

Most homeowner’s insurance policies provide coverage for one’s personal possessions for approximately _______________ of the amount of insurance he or she has on the structure or “dwelling” of a home.

_____________ is considered as one of the most critical areas in finance; it plays a key role in many areas of finance such as buy/sell, solvency, merger and acquisition.

___________________ is the increase in value of a property over time due to inflation, supply and demand, capital improvements and other factors.

_____________________is the value of a company based on a projection of future cash flows that its owners will receive from the company’s assets as well as from its current and future operations.

____________is the price that property would sell for on the open market.

Property assessments are typically conducted from ________________ years, regardless of whether values have gone up or down

A _________________ helps to establish a property’s market value–the likely sales price it would bring if offered in an open and competitive real estate market

To protect the interest of their investors, the mortgage lender’s broker hires _______________ to give an independent and objective evaluation of what the property or home is worth.

The appraisal takes place __________ the lender grants final approval of the buyer’s loan.

The property being appraised is called the ___________________.

A homeowner can purchase an independent appraisal in which an appraiser and/or the realtor gives a value of the home today according to what has sold in the same area in the past ______ months.

___________________ inspection requires that the data is pulled for the subject and the comparable sales in the same manner as for a full appraisal.

The _____________________________is when the appraiser estimates a subject property’s market value by comparing it to similar properties that have sold in the area

Appraisals for government-insured loans, such as a FHA (Federal Housing Administration) loan or a VA (Department of Veterans Affairs) loan, must be done by

____________________determines the legal framework under which the features of an insurance policy are enforced.

Insurance contracts are____________ in that the amounts exchanged by the insured and insurer are unequal and depend upon uncertain future events.

Insurance contracts are _________________, meaning that only the insurer makes legally enforceable promises in the contract.

An individual needs to be _________________ to enter into an agreement with the insurer.

__________________allows an insurer to sue a third party that has caused a loss to the insured and pursue all methods of getting back some of the money that it has paid to the insured as a result of the loss.

The __________________ theory states that the time that a loss is discovered determines the effective policy on the risk.

The _____________________theory provides that all policies on a risk, from the time of initial exposure through the manifestation of the injury or damage are applicable thereby triggering the greatest number of policies and providing maximum coverage.

The ____________________ is the amount of risk one agrees to accept before the insurance company starts paying on a claim.

Some companies are offering deductibles equal to ______ of the insured value of your home.

______________ insurance is insurance one buys if he or she is renting a property from someone else.

An estimated ______ of Renters do not have renter’s insurance coverage.

______ covers a dwelling and personal property against losses from 11 types of perils.

________covers a home (not a condo or apartment), the homeowner and its possessions as well as any liability that might arise from visitors or passers-by.

_______covers personal property from 17 listed perils along with certain building items in which the unit owner might have an insurance interest.

________ covers dwelling and personal property from 11 perils for homes where some historic or architectural aspects make the home’s replacement cost significantly higher than its market value.

______ covers 17 stated perils stated in HO-2 plus any other peril not specified in the policy, except for flood, earthquake, war, and nuclear accident most commonly written policy for a homeowner and is designed to cover all aspects of the home.

_________________protects personal possessions from the same perils as the coverage for the home’s structure.

Coverage D pays up to ________ of the sum for which your home’s structure is insured.

If the homeowner expects coverage, there are certain duties that one must perform after a loss and one of the duties is to file a proof of loss within ____ days of the insurer’s request for it.

An extended replacement cost endorsement can be purchased that will pay _______ or more above the policy limits.

The minimum amount of liability coverage is _____________ per occurrence, which is defined as a single accident or damage resulting from a prolonged exposure to the same set of conditions.

____________covers people other than the insured, and regardless of whether the insured is legally liable for the injury. The insurer will pay reasonable medical expenses for other people who are on the insured’s location.

“Special” covered causes of loss encompass a broad category of all causes of _________ physical loss subject to certain exclusions and limitations

The first thing to know about exclusions is that they vary by

____________________endorsement automatically adjusts the dwelling limit when one renews a policy to reflect current construction costs in the local area.

The limits for personal property are ______ of the main coverage.

________________Floater supplements coverage for possessions of higher monetary value, such as a diamond engagement ring, a grandfather’s pocket watch, artwork, or a valuable collection.

_____________________ exposure can be defined as “potential loss that is unpredictable and capable of producing an extraordinarily large amount of damage relative to the assets held in the insurance pool.”

__________policy covers a business from damages caused by any type of disaster with the exception of those specifically excluded in the policy.

Mitigation defines “repetitive loss structure” as any insured structure incurring flood damage on at least two occasions in a ________ period for which the cost of repair, on average, equals or exceeds 25 % of the value of structure.

____________ waves involve a “push-pull” vibration of earth material in the same direction as the P waves are moving.

______________ is a transaction whereby one insurance company – the reinsurer – agrees to indemnify another insurance company – the ceding or primary – against all or part of the loss that the latter sustains under a policy or policies that it has issued.

If an insurer desires to retire its insurance business and to cease underwriting, it may do so through

___________ contract written on a proportional basis simply prorates all premium, losses, and expenses between the insurer and the reinsurer on a pre-arranged basis.

__________ include such events as fire, wind, hail, and collision with another car

__________is the flood insurance rate zone that corresponds to the areas of 1% annual chance shallow flooding with a constant water-surface elevation (usually areas of ponding) where average depths are between 1 and 3 feet.

____________________designation is used for areas where there are possible but undetermined flood hazards.

The term ______________ is really a statistical designation, and there is a 1-in-100 chance that a flood this size will happen during any year.

The State of Florida has over 17 million residents and ________ of them live or conduct business along or near its coastline.

The National Flood Insurance Program (NFIP) defines _____________as “a general and temporary condition during which the surface of normally dry land is partially or completely inundated.

Flood insurance is a special policy backed by the federal government, with cooperation from local communities and private insurance companies. More than _________ communities have agreed to stricter zoning and building measures to control floods.

The “Dwelling” (home) and “General Property” (commercial) insurance are both written on

_______________allows individuals to minimize post-flood disaster disruptions and recover more rapidly.

Over _________ species of mold have been identified as living in some homes.

_______________mold problems are most likely to occur when there has been an on-going water leak, a flood, or very high levels of humidity in the home.

Like other organisms, mold requires ______________ to grow

____________remediation would include large isolated areas (30 – 100 square feet) which would refer to several wallboard panels.

___________remediation would include extensive contamination in an area greater than 100 contiguous square feet in an area.

Exposure to _______________in residential, public, and commercial buildings is believed to have caused serious medical conditions which include bleeding lungs, digestive problems, hair loss, nausea, loss of memory, reduced cognitive skills, and death.

With an umbrella policy, depending on the insurance company, one can add an additional ____ million in liability protection.

A good range of cost for umbrella insurance is between ____________ per year.

___________Liability covers the cost of damage or loss to another person’s tangible property.

___________________ protects an individual and a family along with assets in the event that this individual is held personally liable for a claim.

National Flood Insurance Reform Act of _______ resulted in major changes to the National Flood Insurance Program (NFIP). The law amended the Flood Disaster Protection Act of 1973.

The Flood Disaster Protection Act of __________ mandated flood insurance coverage for many properties.

Although nearly all the eligible communities are now in the Program, fewer than of the eligible buildings are actually covered by flood insurance policies.