Which of the following is not covered by basic property insurance?
Damage or destruction due to vandalism, fire and certain natural disasters are all usually covered. So is your liability if someone is injured on your property. Certain catastrophes, like flooding or earthquakes, are generally not covered by basic homeowners policies and require specialized insurance.
Termites and insect damage, bird or rodent damage, rust, rot, mold, and general wear and tear are not covered. Damage caused by smog or smoke from industrial or agricultural operations is also not covered. If something is poorly made or has a hidden defect, this is generally excluded and won't be covered.
Final answer:
Pets are typically not insured under property insurance policies.
BOPs do NOT cover professional liability, auto insurance, worker's compensation or health and disability insurance.
The coverage that is NOT included in the basic form dwelling policy is 4) Medical payments coverage. The basic form dwelling policy typically includes coverage for the dwelling itself (1) as well as personal property coverage (3) to protect your belongings.
- Floods. Damage caused by floods is almost always a homeowners exclusion. ...
- Earthquakes and earth movement. Just like flood damage, damage caused by earth movement is a common homeowners insurance exclusion. ...
- Maintenance. ...
- Pests. ...
- Home-based businesses. ...
- Mold. ...
- The full cost of high-value items.
Typical homeowners insurance policies offer coverage for damage caused by fires, lightning strikes, windstorms and hail. But, it's important to know that not all natural disasters are covered by homeowners insurance. For example, damage caused by earthquakes and floods are not typically covered by homeowners insurance.
Property insurance is a type of insurance policy that can provide coverage for property owners or renters. Examples of property insurance include homeowners, renters, and flood insurance policies. These policies can provide coverage for damages caused by fire, flooding, theft, weather, and other risks.
An uninsurable risk is a risk that insurance companies cannot insure (or are reluctant to insure) no matter how much you pay. Common uninsurable risks include: reputational risk, regulatory risk, trade secret risk, political risk, and pandemic risk.
While P&C insurance includes many specific types of insurance, it does not generally include health or life insurance.
What is excluded in a BOP policy?
Common exclusions include: Professional Liability: A BOP typically doesn't include coverage for professional errors or negligence. Businesses requiring professional liability coverage, such as doctors, lawyers, or consultants, may need to consider separate policies.
The typical business that is eligible for a BOP: Has fewer than 100 employees. Has a small office, workplace, or other premises. Makes less than $1 million in annual revenue.
The following risks are ineligible for coverage under the program: automobile dealers and all types of automotive repair and service operations, • banks and all types of financial institutions, • places of amusem*nt, and • wholesalers.
The basic form covers only damage from fire, lightning, and internal explosion, but additional perils can be covered by endorsem*nt. The broad form covers direct damage to dwellings and personal property on a broad named perils basis.
HO-1 Basic Form Policy: The HO-1 policy is the most basic and limited homeowner insurance option. It provides coverage for a specific list of perils, such as fire, lightning, hail, theft, and vandalism.
Homeowners insurance also protects you against liability for accidents that injure other people or damage their property. The policy covers medical expenses for persons accidentally injured on your property. The policy does not protect you against losses from floods, earthquakes, mudslides, mudflows or landslides.
Earthquake, flood, mold, earth movement, and “wear and tear” are some of the perils that are usually excluded. When an insurer writes your homeowners coverage, the insurer is legally obligated to offer you earthquake coverage for an additional premium.
Earth Movement/Landslides/Sinkholes
Much to the amazement of home and business owners, earth movement, such as landslides, sinkholes and earthquakes are also excluded from common standard property insurance policies.
Highly valued items, such as jewelry, fine art, and collectibles, are often excluded from a typical policy for replacement costs. In addition, damage from certain weather events, like floods or earthquakes, usually requires you to purchase additional home insurance. Be sure to check your liability coverage.
- Flooding.
- Earthquakes.
- Business equipment.
- Jewelry or artwork.
- Power outages.
- Nuclear hazard.
- War.
- Dog bites.
What does a basic home insurance policy provide coverage for quizlet?
The basis for most homeowners' policies is called a basic form (HO-1), and it usually provides property coverage against damage caused by fire and lightning; glass breakage; windstorm and hail; explosion; riot and civil commotion; damage by aircraft; damage from vehicles; damage from smoke; vandalism and malicious ...
Standard homeowners policies do not cover flooding, earthquakes or poor maintenance. Flood coverage is provided by the federal government's National Flood Insurance Program, although it is purchased from an insurance agent. Earthquake coverage is available either in the form of an endorsem*nt or as a separate policy.
There are two types of personal property coverage: replacement cost and actual cash value. A replacement cost policy typically pays the dollar amount it will take to buy a new item at the time of a claim.
Homeowners insurance does cover some structural damage. Here are five home structural repairs or rebuilds you can expect your home insurance policy to cover: Roof damage from a severe storm. A total collapsed roof from the weight of snow or ice.
What is personal property insurance? Personal property coverage — also known as contents coverage on a home policy — helps cover the cost of your personal items if they are destroyed, damaged, or stolen due to a covered loss or peril.