Category: property insurance

  1. Duties Following Loss The conditions section of a property insurance policy lists the duties and rights of both the insured and the insurer.  We’ve already discussed the cancellation and misrepresentation provisions. Let’s consider some additional conditions often included in property insurance contracts. Most contracts include conditions that specify what the insured and insurer…

EXCLUSIONS AND LIMITATIONS Every property insurance contract contains exclusions.  In a named peril policy, any peril that is not specifically listed as covered is automatically excluded.  However, named peril policies also list certain exclusions separately to explain or emphasize perils or property that is excluded from coverage. In an open peril policy, the exclusions are…

INSURING AGREEMENT 1. Property Covered   The insuring agreement explains what property is covered and the perils the property is insured against.  Several different coverages may be provided in a single policy.  The insuring agreement describes the key policy coverages in detail. The insuring agreement may also specify that certain additional coverages apply.  These coverages, which…

? How Much Property Is Insured for  The declarations show the policy limit, also known as the limit of coverage, limit of liability, or limit of insurance.  These limits represent the maximum amount the insurance company will pay for a loss.  Within this framework, the principle of indemnity and applicable policy conditions are used to…

What Property Is Covered and Where?  The declarations also describe the property to be insured. The description can be very specific, designating a particular item to be insured (specific insurance), or it can be a blanket description, such as “personal property located at 1550 Willow” (blanket insurance).  Blanket coverage may also mean that the insured’s…

  Like all insurance contracts, property insurance contracts are made up of declarations, insuring agreements, conditions, exclusions, and definitions. The first job of the declarations section is to state who is insured, whether it is an individual or a business.  Remember, insurance contracts are personal.  Even though we sometimes talk about insuring homes or other…