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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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