Because of the importance of this investment, the agent should use great care to assure adequate insurance coverage, so that the insured is fully protected against the many possible losses that might occur. The insurance producer can be of great assistance by surveying the valuation and exposures with the insured, and recommending appropriate amounts and types of insurance to provide this protection. The following checklist for the dwelling coverages will be of assistance in this task.

General Information

Named Insured:

Mailing Address:

City, State:

Daytime Phone:

Evening Phone:

Checklist: Location—Valuation

____1.     Location of primary residence (if different from mailing address):

____2.     Location of other owner-occupied locations?

____3.     Location of rental properties owned by named insured?

____4.     Location of any vacant land owned by named insured?

____5.    Construction, age, dimensions, size, and class of public fire protection for all owned property.

a.system updates-wiring, plumbing;

b.age of roof, siding.

____6.     Replacement cost, actual cash value (ACV), and market value of each building or structure.

____7.     Are the following covered as real or personal property:

a.     carpets, draperies, and curtains;

b.     domestic appliances.

     Are these items covered for ACV or replacement cost?

____8.     Outdoor items: awnings, radio or TV antennas, and other outdoor equipment. Are these items covered for ACV or replacement cost?

____9.     Inflation guard or equivalent protection currently provided?

____10.   Replacement cost on the dwelling currently provided?

Detached Structures

____11.     Are there detached buildings or other structures at any premise?

a.     Is coverage B amount adequate?

b.     Any of these structures used in business or rented to others?

c. Are there pools, trampolines, or other attractive nuisances?

____12.     Any detached structures rented in whole or part to others?

a.     As a garage?

b.     For any other purpose?

Additional Interests

____13.     Who owns the buildings to be insured?

a.     Trust?

b.     Non-resident spouse?

c.     Seller under land contract?

d.     Guardian?

e.     Administrator or executor?

____14.     Mortgagees

a.     First:

b.     Second:

     Does mortgagee pay the premium?

Perils Insured Against

____15.     What perils are insured against?

a.     Dwelling:

b.     Contents:

____16.     Earthquake coverage provided?

____17.     Flood coverage necessary?

____18.     Consider the following:

a.     backup of sumps, sewers, or drains;

b.     wave wash, surface water, storm surge, flood;

c.     subsidence, erosion, mudflow, sinkhole collapse.

____19.     Any substandard or hazardous conditions or exposures?

a.     brush fire;

b.     hurricane;

c. flood;

d. sinkhole;

e.     low market value in relation to cost of replacement.

     If so, must the insured be placed in the Fair Plan, Beach Plan (Windstorm Pool) or some other type of restricted coverage?

____20.     Any buildings in violation of current building or zoning codes?

a.     What about building ordinance coverage?

Business Use Exposures

____21.     Full- or part-time business use of any covered building?

a.     Permitted incidental occupancies: office, professional, studio, or private school.

b.     Other business occupancies that may be negotiated with the underwriter?

____22.     Other business occupancies may require commercial treatment.

____23.     Any premises rented in whole or in part to others?

a.     As a private garage?

b.     Roomers or boarders?

Building Exposures of Tenants

____24.      A lease may require the following of a tenant:

a.     to insure the building for the owner;

b.     to cover glass breakage (not covered under Form HO-4 unless the glass is a tenant's improvement—which is not usually the case);

c.     to be responsible for “maintenance of the premises.”

     What about the fire legal exposure?

     Has the tenant made any substantial improvements or additions to the premises? If yes, is the basic amount of 10 percent of coverage C adequate?

Personal Property

____25.     Amount of coverage?

____26.     Perils applicable?

____27     Does the insured have an inventory or video evidence of the personal property?

____28.     Covered for ACV or replacement cost?

____29.     Any property subject to sublimits?

a.     jewelry, furs, precious stones, etc.;

b.     money, securities, etc.;

c.     watercraft, trailers, etc.;

d.     guns;

e.     silverware;

f.     business property;

g.     adaptable electronic equipment.

     If the insured owns more than what is covered by the sublimits, the items need to be separately insured.

____30.     Does the insured keep property at a second residence?

Scheduled Property

____31.     The following items should be scheduled in order to be covered for open perils and first dollar coverage:

a.     jewelry;

b.     furs;

c.     cameras;

d.     musical instruments;

e.     silverware;

f.     golfer's equipment;

g.     fine arts;

h.     stamp and coin collections.

Price

____32.     Be sure the following are correct:

a.     rating territory;

b.     construction;

c.     public fire protection class;

d.     the number of units in the fire division (HO-4).

____33.     Is the insured eligible for any of the following rate credits:

a.     age of dwelling, systems update;

b.     smoke alarms, burglar alarms;

c.     hand-held fire extinguishers or sprinkler system;

d.     deadbolt locks;

e.     indelible identification markings (Operation Identification) on personal effects.

Personal Liability Checklist—Coverages and Limits

____34.     What policies currently provide personal liability coverage?

a.     homeowners;

b.     mobile homeowners;

c.     farmowners-ranchowners;

d.     comprehensive personal liability policy;

e.     farmers CPL coverage;

f.     watercraft protection and indemnity coverage;

g.     personal umbrella policies.

____35.     Limits currently carried?

a.     personal liability;

b.     medical payments to others.

Personal Liability Checklist—Persons Insured

____36.     Who resides in the insured's residence other than the named insured, spouse, and children (i.e., foster children)?

a. significant others

b. resident relatives-parents, grandparents, siblings

____37.     Do any relatives live in an assisted living facility? Is coverage needed for that person?

____38.     Does the state where the risk is located allow for suits between family members?

____39.     Others who should be named as additional insureds?

a.     nonresident co-owners;

b.     others because of lease, mortgage, land contract, or other contractual requirements of any kind?

Personal Liability Checklist—Premises Exposures

____40.     Is residence premises properly described?

____41.     Additional residence premises?

a.     owned?

b.     occupied?

____42.     Rental property owned by the named insured?

____43.     Does the insured own any pets? All pets must be listed by breed, gender, and are they intact or spayed/neutered.

a. domestic;

b. exotic.

Personal Liability Checklist—Business Exposures

____44.     Any part of residence used for business purpose?

____45.     If so, is it a permitted incidental occupancy?

a.     office;

b.     private school;

c.     studio.

____46.     If not a permitted incidental occupancy, other coverage must be arranged.

____47.     Does the insured farm?

a.     at the residence premises;

b.     somewhere else.

     Arrange farm liability coverage with the underwriter.

____48.     Does anyone engage in part-time or hobby-type businesses?

a.     paper route;

b.     babysitting;

c.     in-home child care;

d.     sale of items such as Tupperware, Amway, Mary Kay, candles, etc.

Personal Liability Checklist—Domestic Employees

____49.     Does the insured employ any domestics?

____50.     If so, does the state require that they be covered by workers compensation?

Personal Liability Checklist — Motor Vehicles, Aircraft, Watercraft

____51.     Does the insured own any motorized yard equipment? Remind him/her that it is covered for liability only on the residence premises.

____52.     Does the insured own any recreational vehicles? Remind him/her that it is covered for liability only on an insured location.

     Coverage for snowmobiles and golf carts may be added via endorsement. At least one insurer covers golf carts while used for “golfing purposes,” defined to include travel to and from the golf course, as well as use on the course. The ISO 2011 form covers liability of the insured when golf carts are used in a private residential community.

____53.     Does the insured own or operate aircraft? If so, separate coverage must be arranged.

____54.     Does the insured own or rent any watercraft? Most homeowners policies provide some liability protection for smaller boats. If the boat is over the size/speed/horsepower limits, it must be insured separately.

Personal Liability Checklist—Personal Injury

____55.     Does the policy cover personal injury (libel, slander, etc.) as well as bodily injury?

a.    Some insurers may include personal injury coverage at no charge.

b.     If not included, can it be added?

____56.     Whether added or included, be sure that the personal injury coverage includes the three standard sets of personal injury:

a.     false arrest, detention or imprisonment, or malicious prosecution;

b.     libel, slander, or defamation of character;

c.     invasion of privacy, wrongful eviction, or wrongful entry.

____57.     Is coverage available for other types of personal injuries: discrimination, humiliation, bullying, etc.

Personal Liability Checklist—Directors and Officers

____58.     Does the insured serve as a director or an officer of any organizations?

a.     religious groups;

b.     charitable organizations;

c.     condominium or homeowners associations;

d.     social clubs;

e.     athletic clubs or leagues;

f.     fraternities or sororities.

____59.     Does the organization provide D&O coverage?

____60.     Should the insured secure his/her own D&O coverage?

     Note: Many people are of the mistaken belief that a personal umbrella covers the D&O exposure. The typical umbrella does not. Remember, an umbrella covers bodily injury and property damage. The damages usually alleged in a D&O action are for misuse of funds. Such misuse of funds is neither BI nor PD.

Personal Liability Checklist—Other Liability Exposures

____61.     If a tenant, does the lease hold him/her responsible for damage to the leased premises? For what perils is the insured liable?

____62.     The standard HO-4 provides coverage only for damage from fire, smoke, or explosion. Is broader coverage needed or available?

____63.     Does the lease contain a “hold-harmless agreement”? Is the HO-4 broad enough to cover it?

Personal Liability Checklist—Personal Umbrella

____64.     Does the client have a personal umbrella?

a.     Limit of umbrella?

b.     Underlying limits required?

c.     What is the minimum self-insured retention?

d.     Must all underlying be written in the company providing the umbrella?

____65.     How broad is the umbrella? Is a true umbrella with a “drop-down” feature or does it merely “follow the form” of the underlying policies?