Your Homeowners Policy What s Covered What s Not. Presented by: Greg L. Waltz, President (954)

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1 Your Homeowners Policy What s Covered What s Not Presented by: Greg L. Waltz, President (954)

2 Hurricane Michael Claims Update as of 01/11/19 Total Claims: 141,039 Estimated Insured Losses:$5 Billion (So far)

3 Types of Homeowners Policies Condominium (HO-6) Unit Owner Homeowners 3 (HO-3) Single Family Home

4 Declarations Effective 04/22/2018 to 04/22/2019 Your Declarations summarizes your coverage and premium. Please read your policy, any attached forms and endorsements and your Declarations for a full description of your coverngc. NAME & ADDRESS OF INSURED Retired Person Kings Point, Sun City Center, FL Policy Number Policy Term Issuing Company 04/22/2018 To 04/22/2019 at 12:01 AM Privilege Underwriters Reclproc:al Exchange THIS POLICY CONTAINS A SEPARATE DEDUCTIBLE FOR HURRICANE LOSSES WHICI MAY RESULT IN HIGH OUT-OF-POCI<ET EXPENSES TO YOU. LIABILITY COVERAGE Personal Liability Medical Payments to Others COVERAGE LIMIT $500,000 INSURED LOCATION Federation of Kings Point Sun City Center, FL COVERAGE COVERAGE LIMIT Dwelling Other Structures Contents Loss of Use

5 Dwelling HO-3 Coverage A Dwelling 1. We Cover: The dwelling on the residence premises: shown in the Declarations, including structures attached to the dwelling; and Materials and supplies located on or next to the residence premises used to construct, alter or repair the dwelling or other structures on the residence premises. 2. We do not cover land, including land on which the dwelling is located. HO-6 We Cover: 1. The alterations, appliances, fixtures and improvements which are part of the building contained within the residential premises ; 2. Items of real property which pertain exclusively to the residential premises ; 3. All improvements or additions to the condominium property that benefits you and fewer than all unit owners; 4. Property which is your insurance responsibility under a corporation or association of property owners agreement

6 Declarations Effective 04/22/2018 to 04/22/2019 Your Declarations summarizes your coverage and premium. Please read your policy, any attached forms and endorsements and your Declarations for a full description of your coverngc. NAME & ADDRESS OF INSURED Retired Person Kings Point, Sun City Center, FL Policy Number Policy Term Issuing Company 04/22/2018 To 04/22/2019 at 12:01 AM Privilege Underwriters Reclproc:al Exchange THIS POLICY CONTAINS A SEPARATE DEDUCTIBLE FOR HURRICANE LOSSES WHICH MAY RESULT IN HIGH OUT-OF- POCKET EXPENSES TO YOU. LIABILITY COVERAGE Personal Liability Medical Payments to Others COVERAGE LIMIT $500,000 INSURED LOCATION Federation of Kings Point Sun City Center, FL COVERAGE COVERAGE LIMIT Dwelling Other Structures Contents Loss of Use

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8 Other Structures HO-3 Coverage B Other Structures We cover other structures on the residence premises set apart from the dwelling by clear space. This includes structures connected to the dwelling by only a fence, utility line, or similar connection. HO-6 Coverage B Other Structures Structures owned solely by you, other than the residential premises, at the location of the residence premises. This coverage does not apply to land, including land on which the residence premises, real property or structures are located.

9 Declarations Effective 04/22/2018 to 04/22/2019 Your Declarations summarizes your coverage and premium. Please read your policy, any attached forms and endorsements and your Declarations for a full description of your coverngc. NAME & ADDRESS OF INSURED Retired Person Kings Point, Sun City Center, FL Policy Number Policy Term Issuing Company 04/22/2018 To 04/22/2019 at 12:01 AM Privilege Underwriters Reclproc:al Exchange THIS POLICY CONTAINS A SEPARATE DEDUCTIBLE FOR HURRICANE LOSSES WHICH MAY RESULT IN HIGH OUT-OF- POCKET EXPENSES TO YOU. LIABILITY COVERAGE Personal Liability Medical Payments to Others COVERAGE LIMIT $500,000 INSURED LOCATION Federation of Kings Point Sun City Center, FL COVERAGE COVERAGE LIMIT Dwelling Other Structures Contents Loss of Use

10 Personal Property Contents HO-3 Coverage C Personal Property We cover personal property owned or used by insured while it is anywhere in the world. HO-6 Coverage C Personal Property We cover personal property owned or used by insured while it is anywhere in the world.

11 Declarations Effective 04/22/2018 to 04/22/2019 Your Declarations summarizes your coverage and premium. Please read your policy, any attached forms and endorsements and your Declarations for a full description of your coverngc. NAME & ADDRESS OF INSURED Retired Person Kings Point, Sun City Center, FL Policy Number Policy Term Issuing Company 04/22/2018 To 04/22/2019 at 12:01 AM Privilege Underwriters Reclproc:al Exchange THIS POLICY CONTAINS A SEPARATE DEDUCTIBLE FOR HURRICANE LOSSES WHICH MAY RESULT IN HIGH OUT-OF- POCKET EXPENSES TO YOU. LIABILITY COVERAGE Personal Liability Medical Payments to Others COVERAGE LIMIT $500,000 INSURED LOCATION Federation of Kings Point Sun City Center, FL COVERAGE COVERAGE LIMIT Dwelling Other Structures Contents Loss of Use

12 Loss of Use HO-3 Coverage D Loss of Use The limit of liability for Coverage D is the total limit for all the coverages that follow. 1. If a loss covered under SECTION 1 PROPERTY COVERAGES makes that part of the residence premises where you reside not fit to live in, we cover the Additional Living Expense, meaning: a. Any necessary increase in living expenses incurred by you so that your household can maintain its normal standard of living. b. If you permanently relocate, the shortest time required for your household to settle elsewhere. In either event, the payment(s) will be limited to 24 consecutive months from the date of the covered loss. HO-6 Same as HO-3

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14 What Expenses are Typically Covered by Loss of Use? AKA: Additional Living Expenses Temporary residence such as hotel, motel or apartment Moving costs Excess of normal grocery or restaurant bills Storage costs for household items Laundry expenses Transportation fees Parking fees Pet boarding

15 Declarations Effective 04/22/2018 to 04/22/2019 Your Declarations summarizes your coverage and premium. Please read your policy, any attached forms and endorsements and your Declarations for a full description of your coverngc. NAME & ADDRESS OF INSURED Retired Person Kings Point, Sun City Center, FL Policy Number Policy Term Issuing Company 04/22/2018 To 04/22/2019 at 12:01 AM Privilege Underwriters Reclproc:al Exchange THIS POLICY CONTAINS A SEPARATE DEDUCTIBLE FOR HURRICANE LOSSES WHICH MAY RESULT IN HIGH OUT-OF- POCKET EXPENSES TO YOU. LIABILITY COVERAGE Personal Liability Medical Payments to Others COVERAGE LIMIT $500,000 INSURED LOCATION Federation of Kings Point Sun City Center, FL COVERAGE COVERAGE LIMIT Dwelling Other Structures Contents Loss of Use

16 Triggers Coverage Perils Insured Against 1. Fire or Lightning 2. Windstorm or Hail 3. Explosion 4. Riot or Civil Commotion 5. Aircraft 6. Vehicles 7. Smoke 8. Vandalism or Malicious Mischief 9. Theft 10. Volcanic Eruption 11. Falling Objects 12. Weight of Ice, Snow, or Sleet 13. Accidental Discharge or Overflow of Water or Stream 14. Sudden & Accidental Tearing Apart, Cracking, Burning, or Bulging 15. Freezing 16. Sudden & Accidental Damage from Artificially Generated Electric Current 17. Sinkhole

17 Two Additional Perils Check your Policy 1. Mold/Fungus may not be covered or limited. May be increased to $10,000 - $50, Back-up Sewer Drains

18 Perils NOT Insured For (Not Covered) 1. Earth Movement (earthquake coverage can be endorsed on) 2. Ordinance or Law (some coverage my be provided in your policy) 3. Water Damage (Sudden & Accidental Water Damage is automatically included; others can be endorsed onto the policy) 4. Power Failure 5. Neglect 6. War 7. Nuclear Hazard 8. Intentional Loss 9. Government Action 10. Collapse (some coverage my be provided in your policy. 11. Theft to a Dwelling Under Construction 12. Vandalism or Malicious Mischief (only if vacant more than 60 days) 13. Mold, Fungus, or Wet Rot (some coverage may be provided in your policy) 14. Wear & Tear, Deterioration 15. Mechanical Breakdown 16. Smog, Rust & Corrosion

19 Claim Scenario Roughly $800 worth of Holiday gifts are stolen from your car at the mall. Does your Auto Policy cover this loss?

20 Claim Scenario Answer No. Your Auto Policy provides coverage for damage to your auto. For Personal Property in your Auto, your Homeowner s Policy provides coverage. In fact, theft of personal property is covered WORLDWIDE.

21 Property Not Covered Animals, Birds, Fish Motor Vehicles, Accessories, Equipment, Parts, Aircraft Property of Roomers, Boarders, Tenants (unless related to you) Land Business Data, Books, Records, Computers and Related Equipment Mopeds or Similar Motorized Bikes Personal Watercraft

22 Property With Special Limitations Cash, Notes, Gold, Coins, Smart Cards $200 Stamps, Deeds, Letters of Credit, Passports Tickets $1,000 Theft of Jewelry, Watches, Furs, Precious/Semi Precious Stones $1,500 Theft of Firearms/Related Equipment $2,000 Silverware, Gold/Plated Ware/Pewterware/Tea Sets $2,500 Trees, Shrubs, Plants (not for Wind) $500 Forgery, Counterfeit Money, Credit Card/ATM Unauthorized Use $500 Grave Markers, Mausoleums $5,000 Watercraft $1,000 Trailer not used with Watercraft $1,000

23 Jewelry & Valuable Items Insurance Consider Valuable Items Coverage For: Jewelry and Engagement Rings Silverware, China and Crystal Antiques, Fine Art Furs Stamp and Coin Collections Bicycles Trophies Sound Equipment (Recorders) Sports Equipment (Archery, Camping, Fishing, Skiing, Golf) Wedding Gifts Cameras Computers Garden Tractors Guns Pedigreed Dogs Musical Instruments

24 Declarations Effective 04/22/2018 to 04/22/2019 Your Declarations summarizes your coverage and premium. Please read your policy, any attached forms and endorsements and your Declarations for a full description of your coverngc. NAME & ADDRESS OF INSURED Retired Person Kings Point, Sun City Center, FL Policy Number Policy Term Issuing Company 04/22/2018 To 04/22/2019 at 12:01 AM Privilege Underwriters Reclproc:al Exchange THIS POLICY CONTAINS A SEPARATE DEDUCTIBLE FOR HURRICANE LOSSES WHICH MAY RESULT IN HIGH OUT-OF- POCKET EXPENSES TO YOU. LIABILITY COVERAGE Personal Liability Medical Payments to Others COVERAGE LIMIT $500,000 INSURED LOCATION Federation of Kings Point Sun City Center, FL COVERAGE COVERAGE LIMIT Dwelling Other Structures Contents Loss of Use

25 Personal Liability HO-3 Coverage E Personal Liability If a claim is made or a suit is brought against an insured for damages because of bodily injury or property damage caused by an occurrence to which this coverage applies, we will: 1. Pay up to our limit of liability for the damages for which the insured is legally liable. Damages include prejudgment interest awarded against the insured 2. Provide a defense at our expense by counsel of our choice, even if the suit is groundless, false or fraudulent. We may investigate and settle any claim or suit that we decide is appropriate. Our duty to settle or defend ends when the amount we pay for damages resulting from the occurrence equals our limit of liability. HO-6 Same as HO-3

26 Personal Liability Protects you against a claim or lawsuit for bodily injury or property damage. Example: a neighbor trips and falls in your home and sues you. You re on the golf course and you hit someone with your club or ball. Host Liquor. Limits of insurance recommended: $300,000, $500,000, $1,000,000

27 What your Homeowners Liability Does NOT Cover Injury to Resident Relative Autos Boats Aircraft Drones Golf Carts manufactured to exceed 25 MPH Expected or Intended Injury (Intentional Acts) Business Operations Professional Services Locations not Listed on Policy Communicable Disease Sexual Molestation, Corporate Punishment Physical or Mental Abuse Controlled Substance

28 Declarations Effective 04/22/2018 to 04/22/2019 Your Declarations summarizes your coverage and premium. Please read your policy, any attached forms and endorsements and your Declarations for a full description of your coverngc. NAME & ADDRESS OF INSURED Retired Person Kings Point, Sun City Center, FL Policy Number Policy Term Issuing Company 04/22/2018 To 04/22/2019 at 12:01 AM Privilege Underwriters Reclproc:al Exchange THIS POLICY CONTAINS A SEPARATE DEDUCTIBLE FOR HURRICANE LOSSES WHICH MAY RESULT IN HIGH OUT-OF- POCKET EXPENSES TO YOU. LIABILITY COVERAGE Personal Liability Medical Payments to Others COVERAGE LIMIT $500,000 INSURED LOCATION Federation of Kings Point Sun City Center, FL COVERAGE COVERAGE LIMIT Dwelling Other Structures Contents Loss of Use

29 Medical Payments ($1,000, $5,000, $10,000) HO-3 Coverage F Medical Payments to Others HO-6 Same as HO-3 We will pay the necessary medical expenses that are incurred or medically ascertained within three years from the date of an accident causing bodily injury. Medical expenses means reason able charges for medical, surgical, x-ray, dental, ambulance, hospital, professional nursing, prosthetic devices and funeral services. This coverage does not apply to you or regular residents of your household except residence employees

30 Loss Assessment Coverage Florida alone has almost 50,000 community associations composed of approximately 10 million residents. These include condominium associations, homeowners associations, and cooperative associations. Along with the many benefits of HOA living come some disadvantages, one being that association living creates the possibility of being assessed by the association.

31 Loss Assessment Coverage HO-3 $1,000 HO-3 (Single Family) HO-6 $2,000 HO-6 per FL Statute (Condo Unit Owner) Any resident who lives in an association should increase the $1000/$2000 limit to a higher limit, especially considering the very inexpensive cost to do so.

32 Loss Assessment Coverage Covered Perils In order for the assessment to be covered by your HO-3 or HO-6 policy, the peril causing the loss must be a covered peril under the homeowners policy. Remember the Perils

33 Loss Assessement Trigger Coverage 1. Fire or Lightning 2. Windstorm or Hail 3. Explosion 4. Riot or Civil Commotion 5. Aircraft 6. Vehicles 7. Smoke 8. Vandalism or Malicious Mischief 9. Theft 10. Volcanic Eruption 11. Falling Objects Perils Insured Against 12. Weight of Ice, Snow, or Sleet 13. Accidental Discharge or Overflow of Water or Stream 14. Sudden & Accidental Tearing Apart, Cracking, Burning, or Bulging 15. Freezing 16. Sudden & Accidental Damage from Artificially Generated Electric Current 17. Sinkhole

34 Loss Assessment Claims Gary has a (HO-3/HO-6) policy and is assessed for fire damage to the HOA clubhouse. Since fire is a covered peril under Gary s HO-3/HO-6 policy, his policy responds to the association assessment. Janice is assessed for flood damage to her association. Since flood is not a covered peril under her HO-3/HO-6 policy, there is no coverage. Ryan is assessed $1,800 by his association for his share of the cost to replace the roof on two condo buildings. The roof on each building was old and had simply worn out; it was time to replace the roof after 18 years. Ryan s homeowners policy does not cover this assessment since routine maintenance is not a covered peril under his homeowners policy.

35 Loss Assessment Coverage for Liability Claims Example: Alan s association assesses him $900 for a liability claim that exceeded the association s general liability policy limits. The claim resulted from a child diving into the HOA swimming pool which had been drained of water the night before. The assessment is covered by Alan s homeowners policy without application of a deductible. The homeowners policy also provides coverage for the policyholder if the assessment is made as a result of action of an association board member who was elected by the association members and derives no income from the association. Directors and Officers Liability

36 Common Homeowners Insurance Claims 1. Wind & Hail 35% of Claims 2. Water Damage & Freezing 29% of Claims 3. Fire and Lightning Damage 23% of Claims 4. Non-Theft Property Damage 7% of Claims 5. Liability 4% of Claims 6. Theft 3% of Claims

37 Top Ten States with the happiest and least happy homeowners Insurance Least Happy 1. Florida 2. Colorado 3. Iowa 4. Mississippi 5. Kansas 6. Tennessee 7. Georgia 8. Connecticut 9. Texas 10. New York Happiest 1. West Virginia 2. Washington D.C. 3. Ohio 4. Kentucky 5. Alabama 6. Michigan 7. Arkansas 8. Pennsylvania 9. Utah 10. Maryland