Property Insurance Policy Provisions and Coverage
Structure and the standard fire policy
New York property forms incorporate the Standard Fire Policy language: the insuring agreement, the 60-day sworn proof of loss, appraisal, suit limitation, mortgagee rights, and the requirement that the insured protect property from further damage. Homeowners forms layer Coverages A–F (dwelling, other structures, personal property, loss of use, liability, medical payments) over that base, with open-peril coverage on the dwelling and named-peril coverage on contents in most HO-3 forms.
Valuation, limits, and conditions
Master actual cash value (replacement cost less depreciation), replacement cost (pay ACV, withhold depreciation, release on proof of repair/replacement), coinsurance (a limit-to-value ratio that penalizes underinsurance), deductibles including percentage hurricane/wind deductibles, and special limits on categories such as jewelry, cash, and silverware. Read exclusions carefully: water damage (distinguish sudden discharge from flood and seepage), mold sublimits, vacancy (typically 60 days), collapse, ordinance or law, intentional loss, and neglect.
Traps: anti-concurrent-causation wording in windstorm/flood claims; matching of undamaged siding or shingles; depreciation recovery deadlines; mortgagee's separate right to claim; salvage that belongs to the insurer once the loss is paid in full; appraisal deciding amount of loss, never coverage.
Worked example: building limit $160,000, replacement value at loss $200,000, 80% coinsurance, $100,000 covered loss. Required limit is $160,000, so no penalty; pay $100,000 less deductible. If the limit were $120,000, payment = (120/160) × $100,000 = $75,000, less deductible.