Virtual University | Property-Perils

Don’t Let Water Damage Claims Drown Your Agency’s Profits

In 2021 according to the Insurance Information Institute (III), almost 24% of losses under homeowners insurance arose from water damage (including freezing-related) claims. From 2017 to 2021, III reports that the average claim severity for water damage claims for homeowners multi-peril policies was $12,514. What if some simple homeowner education could help your insureds prevent or reduce costs arising from water damage claims? Read this article for tips on preventing water damage insurance claims.

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HO Coverage for Freezing Claims Involving Outdoor Hot Tubs

Is an outdoor hot tub Coverage A, B or C under a homeowners policy? If damaged by a covered peril, is recovery on a replacement cost or an ACV basis? If the cause of loss is freezing of a water line or equipment, is that covered or is it excluded because of the insured’s failure to maintain heat or shut off and drain the system?

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Insuring Hot Tubs on an HO Policy

An HO customer’s hot tub is damaged by the freezing of a water line. Does the ISO HO-3 cover this cause of loss? What if the root cause is mechanical breakdown? Is it open perils or named perils? Is valuation based on replacement cost or ACV? This article answers these and other coverage questions.

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The Homeowners Policy and Sewer Backup

Homes and the personal property within them are the frequent victims of sewer backup that originates on or off the residence premises. The question is, to what extent, if any, are these losses covered or excluded by the ISO HO program and its various coverage forms and endorsements? These questions are answered in this definitive article from VU faculty member, David Surles, CPCU, RPLU, AAI.

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Vacation Season is Open Season for Burglars

Summertime can be a bonanza for burglars. If you insure second homes owned by “snowbirds,” the risk of burglary increases during the summer, especially in July and August, according to the Insurance Information Institute. But even an overnight trip can create the opportunity for theft. Spring is a good time to remind your clients of some summer safety tips to help keep their property safer while they’re away for the summer or just on a days-long getaway.

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Why is an Open Perils Policy Superior to a Named Perils Policy?

If asked to give examples of claims that would likely be covered by an open perils property policy but not by a named perils policy, could you? We’ve compiled a short list of generic examples, some slightly tongue-in-cheek, that you can adapt to the forms you sell when asked for an example or two. As cautioned in the article, be careful how you use these.

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Boat Docks and Windstorm Damage

Last year's swath of hurricanes brought numerous claims involving damage to boat docks and piers, along with numerous claim denials. Weather-related claims to boat docks are common elsewhere in the country. While most policies cover windstorm damage, why are these claims often denied? For the answer to this question, and an often overlooked reason why coverage isn't triggered at all, keep reading....

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The Homeowners "Vehicle" Peril

Here's a composite of THREE questions received by our 'Ask an Expert' service in the past month: 'Is there any coverage under the HO3 for a piece of furniture/washer/television (or any other personal property) that an insured is hauling in the back of a pickup and it gets damaged from falling out of the pickup?' In two of the three scenarios (washer and TV), the insurer denied the claim under the HO3.

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What is "Theft"?

An insured sends brass bathroom fixtures to the manufacturer to be replated or replaced. They are lost by the manufacturer who refuses to replace them. Is this loss covered by the HO policy?

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What is "Theft"? It Doesn't Matter!

The insured sold her $29,000 ring...or so she thought. When she attempted to deposit the cashiers check, she learned that it was forged and the forger was long gone. When she reported the claim to her insurer, it was denied. The adjuster said this was voluntary parting, not theft. In this article we'll show you why we believe that's wrong and why, under the circumstances, it doesn't matter.

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What is a "Windstorm"?

Most named perils property policies cover 'windstorm.' Note that this doesn't say 'wind,' but rather 'windSTORM.' So the question is, what constitutes a windstorm? This issue recently arose in an auto claim, but the peril is the same as that under homeowners and commercial property policies.

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