Insurance Policies and Coverage Flashcard

Front

What does a Personal Articles Floater cover?

Back

High-value, portable items on an 'all risks' basis

Answer explanation

A Personal Articles Floater covers high-value, portable items like jewelry, fine art, and other valuables on an 'all risks' basis, providing broader protection than standard policies.

Front

Which organization administers the National Flood Insurance Program (NFIP)?

Back

FEMA

Answer explanation

The National Flood Insurance Program (NFIP) is administered by FEMA (Federal Emergency Management Agency), which oversees the program to provide flood insurance to property owners.

Front

What is the maximum coverage for contents under the NFIP?

Back

$100,000

Answer explanation

The maximum coverage for contents under the National Flood Insurance Program (NFIP) is $100,000. This amount is specifically designated for personal property within insured buildings.

Front

What type of damage does earthquake insurance cover?

Back

Shaking, rupture, and landslide damage

Answer explanation

Earthquake insurance specifically covers damage caused by shaking, rupture, and landslides resulting from seismic activity. It does not cover flood, fire, or wind damage.

Front

Under which form are mobile homes often covered?

Back

HO-7 or DP form

Answer explanation

Mobile homes are typically covered under the HO-7 or DP form, which is specifically designed for mobile and manufactured homes, unlike the other forms that cater to standard homeowners.

Front

What does a boat-owner's policy typically cover?

Back

Hull damage, liability, medical payments, and equipment

Answer explanation

A boat-owner's policy typically covers hull damage, liability, medical payments, and equipment, providing comprehensive protection for the boat and its owner. This makes the first option the correct choice.

Front

In which areas is windstorm coverage often excluded from standard policies?

Back

Hurricane-prone or coastal areas

Answer explanation

Windstorm coverage is often excluded in hurricane-prone or coastal areas due to the high risk of severe storms. Insurers limit exposure in these regions, making it a common exclusion in standard policies.

Front

What is the primary purpose of a Personal Articles Floater?

Back

To extend coverage for high-value, portable items

Answer explanation

The primary purpose of a Personal Articles Floater is to extend coverage for high-value, portable items that may not be fully covered by standard homeowners or renters insurance.

Front

What is the coverage limit for dwellings under the NFIP?

Back

$250,000

Answer explanation

The National Flood Insurance Program (NFIP) provides a coverage limit of $250,000 for dwellings. This is the maximum amount available for residential properties under the program.

Front

What type of policy would cover a mobile home displaced by high winds?

Back

Mobile home policy

Answer explanation

A mobile home policy specifically covers damages to mobile homes, including those caused by high winds. Other policies like earthquake, flood, or auto do not provide coverage for mobile home displacement due to wind.