Property and Casualty Insurance Basics
First-party property: the forms you will see
The homeowners program drives most public adjuster work: HO-3 (open-peril dwelling, named-peril contents), HO-2 (broad named perils), HO-5 (open peril on both dwelling and contents), HO-4 renters, HO-6 condo/co-op, and HO-8 for older homes (functional replacement cost). Coverages are A dwelling, B other structures, C personal property, D loss of use, E personal liability, and F medical payments. Know the usual relationships: B is typically 10% of A and C is commonly 50 to 70% of A unless endorsed.
Exclusions are tested constantly: earth movement, flood (endorsement or NFIP needed), ordinance or law, water damage from sewer or drain backup (endorsement), neglect, intentional loss, wear and tear, and faulty workmanship. Under the mortgage clause, the lender's interest survives the borrower's acts, typically up to the mortgagee's interest.
Commercial property adds coinsurance clauses, blanket versus specific limits, business income and extra expense with a waiting period, and extended periods of indemnity. Percentage deductibles apply to the Coverage A limit, not to the loss.
Casualty side: the CGL is occurrence or claims-made, with each-occurrence, general aggregate, products-completed operations aggregate, personal and advertising injury limits, and supplementary payments. Auto policies provide liability, PIP or medical payments, uninsured/underinsured motorist, and physical damage. Workers compensation is an exclusive remedy providing statutory benefits.
Worked example
A dwelling is insured for $400,000 with a 2% wind/hail deductible. The deductible is 2% of $400,000 = $8,000, applied to every wind or hail loss regardless of the size of that loss - not a flat $2,000.