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Property Insurance Cheat Sheet by

Notes about property insurance for NYS Real Estate Exam


property insurance
provides protection against most risks to property, such as fire, theft, and some weather damage
monoline policy
a policy containing single coverage part plus the common policy conditions & declar­ations
package policy
insurance policy that combines coverage from 2 or more types of insurance (such as property and liability) into 1 policy
clause in insurance policy detailing an exempt­ion­/change in coverage
liability insurance
policy that covers civil liabil­ities to 3rd parties, arising from bodily injury, property damage, or other wrongs due to action or inaction of the insured
actual cash value
a method of valuing insured property (includes any type of deprec­iation)
replac­ement cost
normal cost of exact duplic­ation of property as of certain date
insurance deductible
amt of expenses that must be paid out of pocket before insurer will pay any expenses
umbrella policy
policy that covers amts above those covered under 1 or more other primary policies, and which does not pay until the losses exceed a certain sum; also called excess insurance
commercial policy
covers bodily injury, property damage, physical injury, and advert­ising injury

6 Basic Coverages

Dwelling coverage
other structures coverage (10% of A)
personal property coverage (70-75% of A)
loss of use
personal liability coverage
medical payments coverage

Homeowner Policies and Tenant Policies in NY

basic policy; standard insurance against perils
broad form policy
special form policy
compre­hensive form
market value policy; w/cash value coverage
tenants or cooper­ative owners policies
condom­inium owners policies
HO-3 is most widely used and covers all forms of loss except those specif­ically excluded

Missed­/Unsure Questions

Who may require you to obtain property insurance?
mortgage lender
What type of insurance profes­sional searches the open market to find the best policy for his client?
indepe­ndent broker
Which is the main coverage in any homeow­ner's policy?
dwelling coverage


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