COMMERCE 4FL3 Chapter Notes - Chapter 9: Personal Property, Adverse Selection, Vehicle Insurance
6 Jun 2020
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Building and other structures-land usually is not insured: 2. Maybe not if you don"t have a lot of parties and the value of your possessions is low and non-smoker: covers your own content and maybe liability for you as a tenant. Supplemental coverage or features: personal property floaters- extended coverage for all personal property, regardless of its located, for the policyholder and household residents. Children away at school are often excluded: earthquake coverage- excluded from most policies. Adverse selection makes this very expensive: sewer backup. Replacement value vs. market value: replacement value excludes the value of the land and foundation, market value is usually lower compared to the cost of replacing houses. If your house is 1m, they cover 600k which is the replacement value rather than the market value. Note: you may have bought enough coverage in excess of 80%. With inflation over time, your coverage will fall below 80%.
