A Sneak Peek inside the Property Insurance Course (Part 3):

PART 3 - PROPERTY INSURANCE CLASS

Our main goal at Slater All Lines Insurance School is to teach our students the information they need to pass the Washington State Insurance Producer Exam. This is Part 3 of our new Insurance Exam Sneak Peak series. We want to provide students with an inside look at some of the topics covered in our Insurance Exam Classes.

Have you ever wondered what events and items might not be covered under your homeowner’s insurance policy? Here are some common exclusions, meaning, they are usually not considered a covered loss and the insurance company will not pay for the damages.

  • Loss due to ordinance or law regulating construction, repair or demolition.
  • Earth Movement means landslide, mudflow, earth sinking, rising or lifting, and earthquake including land shock waves before, during or after a volcanic eruption.
  • Direct or Indirect Loss from Water Damage – Water damage means loss caused or contributed by: sewer or drain backup, water from below the ground including seeps or leaks through any part of the building, sidewalk, driveway, foundation or swimming pool. Water damage includes flood, surface water, waves, tidal water, overflow of a body of water or spray from any of these, whether driven by wind or not.
  • Loss due to power interruption whose source is off the premises.
  • Loss due to neglecting to protect property after a loss.
  • War and nuclear perils.
  • Intentional loss or illegal activities committed by or at the direction of an insured.
  • The coverage for discharge, overflow, vandalism and malicious mischief, theft, attempted theft, or damage to glass, is suspended whenever the dwelling has been vacant for more than 60 consecutive days.
  • Damage from volcanic action is not covered unless one gets a special Volcanic Action coverage. This covers volcanic blast or airborne shock waves, ash, dust or particulate matter, and lava flow. Volcanic Action coverage does not pay for damage to land, property in the open or in open sheds and buildings, and personal property in buildings not completely enclosed.

Your duties after a loss, also called Notice of Claim, include notifying the insurance company immediately after the loss, notifying the police if a law has been broken, protecting the property from further damage, submitting a proof-of-loss and inventory of damages to your insurance company within 60 days of the loss, and making the property available for inspection if required.

A Sneak Peek inside the Property Insurance Course (Part 2):

PART 2 - PROPERTY INSURANCE CLASS

Our main goal at Slater All Lines Insurance School is to teach our students the information they need to pass the Washington State Insurance Producer Exam. This is Part 2 of our new Insurance Exam Sneak Peak series. We want to provide students with an inside look at some of the topics covered in our Insurance Exam Classes.

How are loss settlements determined by insurance companies?

  • Actual Cash Value (ACV) means the cost of repairing the damage, minus reasonable depreciation (wear and tear, deterioration and obsolescence).
  • Replacement Cost (RC) means the current cost, at the time of loss, to repair or replace the damaged property with new materials of like kind and quality, without deduction for depreciation, but not more than the policy limit.
  • Stated Value Coverage, a.k.a. Agreed Value…..Property is insured for a set value. The value is determined on the policy date, not at the time of the loss. This is usually accomplished by scheduling a particular item on the policy.
  • (Fair) Market Value is a concept which does not usually apply to insurance settlements. Market value means the selling value of the property. The (fair) market value on real property would not be a good indicator of the insurable value for fire insurance.    In a down market, a home might sell for less than it cost to be rebuilt.
  • Salvage Value…. The Salvage Clause is a condition in a property policy that gives the insurance company the right to take title to property after payment of a total loss. Salvage Value is often referred to as the value of damaged property taken over by an insurer to reduce its loss. The insurance company will sell the damaged property. Most insurance companies will offer the insured an option to purchase the salvage back from the insurer for what the insurance company might receive from a salvage yard.