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2 Hour Webcast FAIA 1. Per DFS requirements, you'll need to sign an affidavit for us to process your CE. Please fax the affidavit to 850-668-2852 OR mail.

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Presentation on theme: "2 Hour Webcast FAIA 1. Per DFS requirements, you'll need to sign an affidavit for us to process your CE. Please fax the affidavit to 850-668-2852 OR mail."— Presentation transcript:

1 2 Hour Webcast FAIA 1

2 Per DFS requirements, you'll need to sign an affidavit for us to process your CE. Please fax the affidavit to OR mail it to PO Box 12129, Tallahassee, FL, OR scan it to a.pdf file and it to Electronic Submission. Be sure to complete all the required information and sign it below. The affidavit is located on the FAIA website, under Education. We need this form to be sent within three (3) business days. 2

3 Overview of ISO Homeowners Program HO-3 Special HO-4 Renter HO-5 Open Perils HO-6 Condo HO-8 Modified 3

4 Before its said and done we will have covered: Section I Property Coverages Section I Perils Insured Against Section I Exclusions Section I Conditions Section II Liability Coverages Section II Exclusions Section II Additional Coverages Section II Conditions Section I and II Conditions Endorsements 4

5 5 11. "Residence premises" means: a. The one family dwelling where you reside; b. The two, three or four family dwelling where you reside in at least one of the family units; or c. That part of any other building where you reside; and which is shown as the "residence premises" in the Declarations. "Residence premises" also includes other structures and grounds at that location.

6 It includes not one but up to four family dwelling units where the named insured must reside in one. 6

7 7

8 Coverage A Dwelling includes permanently attached items such as: plumbing heating, cooking, and cooling equipment tile Cabinets lighting fixtures Awnings security alarm Intercom central vacuum system fences patios and indoor hot tubs or pools. 8

9 9

10 2. We do not cover land, including land on which the dwelling is located. 10

11 2. We do not cover land, including land on which the dwelling is located. 69O Mortgage Fire Insurance Requirements Limited No mortgage lender shall, in connection with any application for a mortgage loan in this state which is secured by a mortgage on residential real estate located in this state, require any prospective mortgagor to obtain by purchase or otherwise a fire insurance policy in excess of the replacement value of the covered premises as a condition for granting such a mortgage. 11

12 12 Coverage B insures other structures on the residence premises set aside from the dwelling by clear space.

13 13 We cover other structures on the "residence premises" set apart from the dwelling by clear space. This includes structures connected to the dwelling by only a fence, utility line, or similar connection.

14 14

15 15

16 16 Coverage B Exclusions

17 17 Business means: A trade, profession or occupation engaged in on a full-time, part-time or occasional basis;

18 18

19 5. "Insured" means: a. You and residents of your household who are: Your relatives; or (2) Other persons under the age of 21 and in your care or the care of a resident of your household who is your relative; b. A student enrolled in school full-time, as defined by the school, who was a resident of your household before moving out to attend school, provided the student is under the age of: (1)24 and your relative; or (2) 21 and in your care or the care of a resident of your household who is your relative; or 19

20 An unnamed spouse has insured status (you) so long as he or she is a resident of the named insureds household. If an unnamed spouse leaves, without intent to return, that person has no status whatever under the policy. 20

21 21 With the dwelling having a stated limit in the declarations, Coverage B has a limit of 10% of the Coverage A limit. This 10% limit applies collectively to all other structures at the residence premises. The 10% is in addition to coverage A limit.

22 22

23 23 10% for usually

24 b. Self-storage Facilities Our limit of liability for personal property owned or used by an "insured" and located in a self-storage facility is 10% of the limit of liability for Coverage C, or $1,000, whichever is greater. However, this limitation does not apply to personal property: (1) Moved from the "residence premises" because it is: (a) Being repaired, renovated or rebuilt;and (b) Not fit to live in or store property in;or (2) Usually located in an "insured's" residence, other than the "residence premises". 24

25 10% in storage unit would not apply in cases such as: Personal property is located in a warehouse which is not a self-storage facility. Personal property is in a self-storage facility because the main dwelling had suffered a fire loss and property was removed during the repair process. A college student in another city stores his/her property in a self-storage facility over the summer.. 25

26 10% in storage unit would not apply in cases such as: Personal property is in a moving truck. Personal property is stored in a neighbor's garage. Personal property is in a beach house or hotel room for a week. 26

27 Review Time 27

28 1. What doesnt the homeowners policy cover that shocks a lot of bankers? A. Wind B. Land C. Money D. Trees 28

29 1. What doesnt the homeowners policy cover that shocks a lot of bankers? A. Wind B. Land C. Money D. Trees 29

30 2. Residence premises can include up to how many family dwelling units if you reside in at least one. A. 3 B. 2 C. 4 D. 1 30

31 2. Residence premises can include up to how many family dwelling units if you reside in at least one. A. 3 B. 2 C. 4 D. 1 31

32 3. Coverage B-Other Structures usually has a limit of ______% of the Coverage A Limit. A. 30% B. 20% C. 40% D. 10% 32

33 3. Coverage B-Other Structures usually has a limit of ______% of the Coverage A Limit. A. 30% B. 20% C. 40% D. 10% 33

34 34 Special Limits

35 a. $200 on money, bank notes, bullion, gold other than goldware, silver other than silverware, platinum other than platiumware, coins, medals, scrip, stored value cards and smart cards. The limit for items in this category may be increased with endorsement HO (or HO 04 66) from $200 up to $1,000 in increments of $

36 b. $1,500 on securities, accounts, deeds, evidences of debt, letter of credit, notes other than bank notes, manuscripts, personal records, passports, tickets and stamps. This dollar limit applies to these categories regardless of the medium (such as paper or computer software) on which the material exists The limit for items in this category may be increased with endorsement HO (or HO 04 66) from $1,500 up to $2,500 in increments of $

37 c. $1,500 on watercraft of all types, including their trailers, furnishings, equipment and outboard engines or motors. d. $1,500 on trailers or semitrailers not used with watercraft of all type. 37

38 e. $1,500 for loss by theft of jewelry, watches, furs, precious and semi-precious stones. The theft limit for property in this category may be increased with endorsement HO (or HO 04 66) from $1,500 up to $5,000, but the limit remains $1,000 per article. 38

39 f. $2,500 for loss by theft of firearms and related equipment. The theft limit for firearms may be increased from $2,500 up to $6,500 with endorsement HO (or HO 04 66). 39

40 g. $2,500 for loss by theft of silverware, silver-plated ware, goldware, gold-plated ware, platinumware, platinum-plated ware and pewterware. This includes flatware, hollowware, tea sets, trays and trophies made of or including silver, gold or pewter. The theft limit for property in g. may be increased from $2,500 up to $10,000 with endorsement HO (or HO 04 66). 40

41 h. $2,500 on property, on the "residence premises," used primarily for "business" purposes. For item h., the limit for business property on premises may be increased up to $10,000 with endorsement HO

42 i. $1,500 on property, away from the "residence premises", used primarily for "business" purposes. However, this limit does not apply to antennas, tapes, wires, records, disks or other media that are: (1) Used with electronic equipment that reproduces, receives or transmits audio, visual or data signals; and (2) In or upon a "motor vehicle". For item h., the limit for business property on premises may be increased up to $10,000 with endorsement HO

43 j. $1,500 on portable electronic equipment that: (1) Reproduces, receives or transmits audio, visual or data signals; (2) Is designed to be operated by more than one power source, one of which is a "motor vehicle's" electrical system; and (3) Is in or upon a "motor vehicle". 43

44 k. $250 for antennas, tapes, wires, records, disks or other media that are: (1) Used with electronic equipment that reproduces, receives or transmits audio, visual or data signals; and (2) In or upon a "motor vehicle". 44

45 Motor Vehicle a. A self-propelled land or amphibious vehicle; or b. Any trailer or semitrailer which is being carried on, towed by or hitched for towing by a vehicle described in a. above. 45

46 How Deductibles Apply to the Special Limits Coverage C- $75,000 $250 Deductible $2,500 jewelry, $500 cash, $1,000 other personal property totaling $4,000 According to Special Limits only $1,500 can be collected for jewelry and $200 for cash. This leaves $1,300 EXCESS Since this loss exceeds the limits, the $250 can be applied against the excess and doesnt reduce the special limits amount. 46

47 Property Not Covered 47 Property Not Covered

48 4. Property Not Covered We do not cover: a. Articles separately described and specifically insured, regardless of the limit for which they are insured, in this or other insurance; Articles means specific, identifiable objects, each described separately and insured individually. 48

49 b. Animals, birds or fish; 49

50 50

51 51

52 f. Property of roomers, boarders and other tenants, except property of roomers and boarders related to an "insured; g. Property in an apartment regularly rented orheld for rental to others by an "insured", except as provided in E.10. Landlord's Furnishings under Section I – Property Coverages; h. Property rented or held for rental to others off the "residence premises"; 52

53 i. "Business" data, including such data stored in: (1) Books of account, drawings or other paper records; or (2) Computers and related equipment. We do cover the cost of blank recording or storage media, and of prerecorded computer programs available on the retail market; 53

54 j. Credit cards, electronic fund transfer cards or access devices used solely for deposit, withdrawal or transfer of funds except as provided in E.6. Credit Card, Electronic Fund Transfer Card Or Access Device, Forgery And Counterfeit Money under Section I – Property Coverages; or 54

55 k. Water or steam. 55

56 56 Coverage D applies to the insured exposure to a financial loss, apart from the property damage itself, if the insured cannot live in the residence premise due to damage.

57 Coverage D applies only if the damage is the result of a loss that is covered under Section I. Coverage D does not apply if: 1. damage to property simply prevents access to the residence (bridge down) 2. damaged premises is not the residence premises (rented vacation 57

58 58 30%

59 1. Additional Living Expense If a loss covered under Section I makes that part of the "residence premises" where you reside not fit to live in, we cover any necessary increase in living expenses incurred by you so that your household can maintain its normal standard of living. Payment will be for the shortest time required to repair or replace the damage or, if you permanently relocate, the shortest time required for your household to settle elsewhere. 59

60 2. Fair Rental Value If a loss covered under Section I makes that part of the "residence premises" rented to others or held for rental by you not fit to live in, we cover the fair rental value of such premises less any expenses that do not continue while it is not fit to live in. Payment will be for the shortest time required to repair or replace such premises. 60

61 3. Civil Authority Prohibits Use If a civil authority prohibits you from use of the "residence premises" as a result of direct damage to neighboring premises by a Peril Insured Against, we cover the loss as provided in 1.Additional Living Expense and 2. Fair Rental Value above for no more than two weeks. 61

62 4. Loss Or Expense Not Covered We do not cover loss or expense due to cancellation of a lease or agreement. The periods of time under 1. Additional Living Expense, 2. Fair Rental Value and 3. Civil Authority Prohibits Use above are not limited by expiration of this policy. 62

63 63 There are 12 additional coverages.

64 1. Debris Removal a. We will pay your reasonable expense for the removal of: (1) Debris of covered property if a Peril Insured Against that applies to the damaged property causes the loss; or (2) Ash, dust or particles from a volcanic eruption that has caused direct loss to a building or property contained in a building. This expense is included in the limit of liability that applies to the damaged property. If the amount to be paid for the actual damage to the property plus the debris removal expense is more than the limit of liability for the damaged property, an additional 5% of that limit is available for such expense. 64

65 Here are the key points to remember about this section: 1. Removal coverage applies only to the debris of covered property. 2. If there is no damage to covered property or the cause of loss is not a peril insured against, debris removal does not apply. 3. Coverage is not restricted to debris that is located on the residence premises. 65

66 If a tree is blown down by wind or hail it is not covered and a tree owned by the neighbor is not covered property of the insured but this section makes some exceptions up to 1,

67 67 The tree has to either damage a covered structure or must block a driveway or ramp designed to assist the handicapped.

68 2. Reasonable Repairs a. We will pay the reasonable cost incurred by you for the necessary measures taken solely to protect covered property that is damaged by a Peril Insured Against from further damage. b. If the measures taken involve repair to other damaged property, we will only pay if that property is covered under this policy and the damage is caused by a Peril Insured Against. This coverage does not: (1) Increase the limit of liability that applies to the covered property; or (2) Relieve you of your duties, in case of a loss to covered property, described in B.4. under Section I – Conditions. 68

69 This is a post loss benefit. 69

70 70 This is the part of the policy where agents heard the following: I need 4 new pine trees. They were all blown down during Hurricane (Insert any one).

71 The aggregate limit is 5% of the Coverage A limit provided as an additional amount of insurance with sublimit of $500 for loss to any one tree, shrub or plant. 71

72 4. Fire Department Service Charge We will pay up to $500 for your liability assumed by contract or agreement for fire department charges incurred when the fire department is called to save or protect covered property from a Peril Insured Against. We do not cover fire department service charges if the property is located within the limits of the city, municipality or protection district furnishing the fire department response. This coverage is additional insurance. No deductible applies to this coverage. 72

73 5. Property Removed We insure covered property against direct loss from any cause while being removed from a premises endangered by a Peril Insured Against and for no more than 30 days while removed. This coverage does not change the limit of liability that applies to the property being removed. 73

74 Up to 30 days. 74

75 75 It is not required that the card have been stolen; any basis on which it is subjected to unauthorized use is covered.

76 76 $1,000

77 Covered Perils: Example #1: Sue has an HO-3 policy and is assessed for fire damage to the HOA clubhouse. Since fire is a covered peril under her HO-3 her policy responds less deductible. Example #2: Sue is assessed for flood damage to the same clubhouse. Since flood is not a covered peril under her HO-3 there is no coverage. 77

78 Assessments Example, if a clubhouse were damaged by fire and the HOA made an initial assessment of $3,500 the homeowners policy pays the $1,000 limit (assuming it has not been increased). If, three months later, another assessment is made for the same fire loss there is not an additional $1,000 available for another assessment. 78

79 79 "an abrupt falling down or caving in, with the result that the building or part of the building cannot be occupied for its intended use."

80 Additional wording to ISO policy : of a building or any part of a building 80

81 81 damage to, or by, glass is actually a result, rather than a cause.

82 10. Landlord's Furnishings We will pay up to $2,500 for your appliances, carpeting and other household furnishings, in each apartment on the "residence premises" regularly rented or held for rental to others by an "insured", for loss caused by a Peril Insured Against in Coverage C, other than Theft. This limit is the most we will pay in any one loss regardless of the number of appliances, carpeting or other household furnishings involved in the loss. This coverage does not increase the limit of liability applying to the damaged property. 82

83 The insured must reside in one unit; however, the others may be rented. 83

84 84 Gurns O&L problems: $200,000 house sustained $50,000 of damage in the fire. $50,000 would put the house back just as it was, but contractor says it will take an additional $25,000 to bring the house up to code.

85 12. Grave Markers We will pay up to $5,000 for grave markers, including mausoleums, on or away from the "residence premises" for loss caused by a Peril Insured Against under Coverage C. This coverage does not increase the limits of liability that apply to the damaged covered property. 85

86 Review Time 86

87 1. The 2011 ISO Homeowners gives how much coverage for personal property located in a storage unit? A. 50% B. 100% C. 10% D. 30% 87

88 1. The 2011 ISO Homeowners gives how much coverage for personal property located in a storage unit? A. 50% B. 100% C. 10% D. 30% 88

89 2. How much coverage is given on securities, accounts, deeds ect? A. 500 B C D. 0 89

90 2. How much coverage is given on securities, accounts, deeds ect? A. 500 B C D. 0 90

91 3. Which of the following is not an Additional Coverage? A. Trees, shrubs, and other plants B. Credit Card C. Boats D. Fire Department 91

92 3. Which of the following is not an Additional Coverage? A. Trees, shrubs, and other plants B. Credit Card C. Boats D. Fire Department 92

93 The state of Florida has taken a very strong position on the issue of unauthorized entities. An unauthorized entity is an insurance company that is not licensed by the Florida department of financial services. Agents and brokers have responsibility for conducting reasonable research to ensure that they are not writing policies or placing business with unauthorized entities. Lack of careful screening can result in significant financial loss to Florida residents due to unpaid claims and/or theft of premiums. 93

94 Agents may be held liable when representing these unauthorized entities. It is the agents and brokers responsibility to give fair and accurate information regarding the companies they represent. Any question about the authorized status of a company can be checked by calling the Florida department of financial services at or for out of state agents, We urge all agents and brokers to adhere to this admonition. 94

95 For more information on unauthorized entities go to FAIAs website at and under the Education section you will find a handout that you can download.www.faia.com 95

96 Per DFS requirements, you'll need to sign an affidavit for us to process your CE. Please fax the affidavit to OR mail it to PO Box 12129, Tallahassee, FL, OR scan it to a.pdf file and it to Electronic Submission. Be sure to complete all the required information and sign it below. The affidavit is located on the FAIA website, under Education. We need this form to be sent within three (3) business days. 96

97 Thanks for attending! Jeff Odom 97


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