BU353 Chapter Notes - Chapter 12: Property Insurance, Reinsurance, Capital Market
Document Summary
Homeowners policies are multiple-line policies; they provide coverage for first-party property, third-party liability, voluntary medical payments and voluntary payment for property damage of others. If the policy lists the perils that are covered it is called a specified or named perils policy. In other cases, the policy covers all perils except those specifically excluded (known as an all risk or all perils policy). Section i provides coverage for damage to both buildings and personal property due to a broad range of perils. Section ii provides coverage for compensatory damages and defense costs for unintentional bodily injury and property damage to third parties that arise from accidents at the residence or that result from actions of the insured. Loss settlement for homeowners policies varies depending on the type of policy and whether the loss is to the dwelling or personal property. The most common types of loss settlement methods are like-kind replacement cost, guaranteed replacement cost, and actual cash value.