CISR Other Personal flashcards

41 cards. Read the term and the definition here. The deck at the top of this page is optional.

Home-based business exclusion

Standard homeowners forms exclude liability and most property for business pursuits. Incidental business property is usually sublimited, so a businessowners policy or endorsement is needed to close the gap.

Rental dwelling eligibility

Homeowners policies generally require an owner-occupied dwelling. A rented non-owner-occupied home usually needs a dwelling (DP-3) or commercial property form instead, because the HO eligibility condition is unmet.

Business use of personal auto

Using a personal auto for deliveries, sales calls, or ride-hailing can trigger the business-use exclusion or change the rating class. Commercial auto or a business-use endorsement may be required.

Professional liability gap

Consulting, tutoring, accounting, and beauty services create errors and omissions exposure. Homeowners and businessowners forms generally do not cover professional services, so a professional liability policy is needed.

In-home childcare exposure

Licensed day care is usually treated as a business and excluded from homeowners coverage. Endorsements or a separate day care liability policy may be needed, while unlicensed babysitting is often carved out.

Incidental business property sublimit

Homeowners forms typically cap business property on premises at a small amount and off premises at a lower amount. Inventory and samples above those limits need commercial property coverage.

Short-term rental exposure

Renting a room or home through a platform raises business-pursuit, vacancy, and liability questions. Homeowners coverage may not respond, so endorsements or a dedicated rental policy should be considered.

Recreational vehicle policy

RVs, motor homes, and travel trailers are usually written on a separate recreational vehicle policy or endorsed onto a personal auto policy. Liability follows the vehicle and accessories may need scheduling.

Watercraft horsepower limits

Many homeowners forms sublimit or exclude boats based on length, horsepower, and propulsion. Larger or high-horsepower craft generally require a separate boat or yacht policy.

Personal watercraft coverage

Jet skis are often excluded from homeowners and standard boat policies. A dedicated personal watercraft policy or endorsement is needed, and operator age and experience can affect eligibility.

ATV and snowmobile coverage

Coverage may be added to a personal auto policy or written on a recreational vehicle policy. Off-road use, racing, and unregistered operation are commonly excluded or restricted.

Recreational underwriting factors

Underwriters review operator experience, safety training, storage location, seasonal use, and loss history. Safety course and alarm discounts are common, and youthful operators may be excluded.

Recreational liability and umbrella

Recreational policies carry their own liability limits, separate from homeowners. Umbrella insurers often require specified underlying recreational limits to be maintained to avoid a self-insured retention.

Agreed value vs. ACV

Recreational vehicle physical damage may settle on agreed value or actual cash value depending on the form. Deductibles and depreciation can significantly affect the claim payout.

Golf cart liability

Coverage depends on registration and use. Operation on public roads may require auto liability, and homeowners forms often exclude motorized vehicle liability, so an endorsement may be needed.

Personal umbrella purpose

A personal umbrella provides excess liability above auto, homeowners, watercraft, and recreational policies. It may also drop down to cover some losses not covered by underlying policies, subject to a retention.

Umbrella underlying requirements

Umbrella insurers typically require auto liability of $250,000/$500,000 or $300,000 CSL and homeowners liability of $300,000, plus specified recreational limits, before the umbrella will respond.

Self-insured retention

If required underlying coverage is not maintained, the umbrella may apply a self-insured retention equal to the required underlying limit. The insured pays that amount before the umbrella responds.

Umbrella drop-down coverage

Umbrella coverage is usually excess over required underlying limits and does not increase limits below those amounts. Some losses not covered by underlying policies may be covered subject to a retention.

Umbrella exclusions

Personal umbrella policies generally exclude business pursuits, professional liability, intentional acts, and workers' compensation. Some insurers offer endorsements for incidental business exposure.

Defense costs in umbrella

Defense costs under a personal umbrella may be included within the limit of liability or paid in addition, depending on the form. Confirm whether defense is inside or outside the limit.

Umbrella eligibility criteria

Eligibility often requires a minimum number of years of driving experience, a clean loss history, and acceptable recreational exposures. Youthful operators and high-risk vehicles may be excluded.

Excess vs. umbrella liability

Excess policies generally follow the terms of the underlying policy and do not drop down to fill coverage gaps. Umbrellas may drop down subject to a self-insured retention.

Flood coverage and NFIP

Standard homeowners forms commonly exclude flood and surface water. Flood coverage is written through the NFIP or private insurers, and NFIP policies typically have a 30-day waiting period.

Earthquake coverage

Earthquake is generally excluded under homeowners forms. Coverage is added by endorsement or a separate policy, often with a percentage deductible of 10-15% of the dwelling limit.

Wind and hurricane deductibles

Wind and hurricane deductibles are often a percentage of the dwelling limit, such as 2%, 5%, or 10%. They apply when a named storm triggers the deductible and can differ from the all-other-perils deductible.

Coastal wind exclusions

Named storm and hurricane exclusions or sublimits may apply to coastal properties. Insurers may require separate wind policies or coastal endorsements in high-risk zones.

Wildfire mitigation requirements

Insurers may require defensible space, brush clearance, and fire-resistive construction standards. Coverage may be non-renewed in high-hazard zones, so mitigation documentation matters.

Percentage deductible mechanics

Catastrophe deductibles apply per occurrence. Policyholders should understand how the deductible is calculated and whether it applies to the dwelling only or to all coverage parts.

Additional living expense limits

ALE coverage can be critical after a catastrophe. It typically has a time limit, such as 12-24 months, and a percentage of the dwelling limit, so policyholders should review both.

Post-catastrophe claims process

Insurers may deploy catastrophe teams and require proof of loss. Policyholders should document losses with photos and receipts and be aware of time limits for filing claims.

Residual catastrophe markets

Reinsurance and catastrophe modeling affect availability and pricing. State residual markets, such as FAIR plans and beach or wind pools, provide coverage when the voluntary market is limited.

Identity theft coverage

Homeowners policies may offer identity theft expense coverage, often with a modest sublimit. Standalone cyber policies address data breach, online fraud, and cyber extortion more broadly.

Personal cyber exposure

Phishing, ransomware on home devices, online banking fraud, and social media liability are often excluded or sublimited under homeowners forms. Standalone cyber coverage addresses these gaps.

Smart home data breach

Smart home and IoT devices create privacy and liability exposures. A data breach from a compromised device may not be covered under standard homeowners forms.

Drone liability coverage

Recreational drone liability may be excluded or sublimited under homeowners forms. Commercial drone use requires a separate aviation or drone liability policy.

Electric vehicle fire risk

Lithium battery fires and home charging equipment raise property and liability questions. Coverage depends on the auto and homeowners forms and any endorsements.

Ride-share coverage gap

Personal auto policies typically exclude commercial ride-hailing use. Ride-share endorsements or commercial policies are needed, and gaps exist between app-on and app-off periods.

Remote work coverage gap

Remote work and home-based business exposure increased after the pandemic. Homeowners business-pursuit exclusions and sublimits may leave gaps requiring endorsements or commercial coverage.

Parametric catastrophe products

Climate and catastrophe risk drive availability and pricing changes. Insurers may use parametric or surplus lines products for hard-to-place risks, paying claims based on a trigger index.

Social media defamation liability

Personal liability coverage may exclude or sublimit claims arising from online activity. Umbrella policies may or may not respond, so endorsements may be needed.