Home Insurance / Condominium Insurance

KNOWLEDGE EXPECTED OF: QAFP® Professionals

Highest Knowledge Level: Awareness

Knowledge Levels and Associated Verbs


Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
Define
To state exactly the meaning of
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
Compare
To note the similarities and differences between two or more things
Estimate
To determine an approximate value for
Calculate
To find the value using mathematics
Convert
To change from one form or purpose to another
Evaluate
To reach a conclusion or make a through careful study
Interpret
To give the meaning of / to construe or understand / to translate orally

Hold cursor over or click on each term to read its definition.

  • Identify types of coverage that a home insurance1 policy may provide, such as: 
    • Building coverage
    • Contents coverage
    • Additional living expenses
    • Personal liability
    • Medical expenses
    • Personal injury protection 
  • Identify the purpose for which each type of home insurance coverage may be used.  
  • Identify uses of residential property that may impact the insurance policy coverage required, such as:
    • Owner-occupied
    • Non-owner-occupied (i.e., rental property)
    • Dwelling under construction
    • Business uses 
  • Identify that changes in the use of a property may require changes to insurance coverage, potentially resulting in a change in premium.  
  • Identify factors that may impact the premium of a home insurance policy, such as:
    • Structure of property
    • Age of property
    • Geographic location of property
    • Security systems
    • Proximity to fire hydrant/fire station
    • Heating source
    • Value of coverage (i.e., liability protection, deductibles) 
  • Identify features that may be added to a home insurance policy, such as: 
    • Specific product coverage, such as for jewellery, art, collectibles or securities 
    • Sewer backup coverage
    • Flood coverage
    • High wind coverage
    • Earthquake coverage 
  • Identify additional types of coverage that a condominium insurance policy may provide, such as: 
    • Improvements and betterments
    • Supplemental coverage for condominium unit and/or common/shared space 
  • Identify the purpose for which each type of condominium insurance coverage may be used.  
  • Identify that as a condition of credit approval, a lender may require an individual to maintain home/condominium insurance on their property. 

REFERENCES

1 https://www.canada.ca/en/financial-consumer-agency/services/insurance/home.html 

KNOWLEDGE EXPECTED OF: CFP® Professionals

Highest Knowledge Level: Understanding

Knowledge Levels and Associated Verbs


Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
Define
To state exactly the meaning of
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
Compare
To note the similarities and differences between two or more things
Estimate
To determine an approximate value for
Calculate
To find the value using mathematics
Convert
To change from one form or purpose to another
Evaluate
To reach a conclusion or make a through careful study
Interpret
To give the meaning of / to construe or understand / to translate orally

Hold cursor over or click on each term to read its definition.

  • Identify types of coverage that a home insurance1 policy may provide, such as: 
    • Building coverage
    • Contents coverage
    • Additional living expenses
    • Personal liability
    • Medical expenses
    • Personal injury protection 
  • Explain the purpose of each type of home insurance coverage.  
  • Identify uses of residential property that may impact the insurance policy coverage required, such as:
    • Owner-occupied
    • Non-owner-occupied (i.e., rental property)
    • Dwelling under construction
    • Business uses 
  • Identify that changes in the use of a property may require changes to insurance coverage, potentially resulting in a change in premium.  
  • Identify factors that may impact the premium of a home insurance policy, such as:
    • Structure of property
    • Age of property
    • Geographic location of property
    • Security systems
    • Proximity to fire hydrant/fire station
    • Heating source
    • Value of coverage (i.e., liability protection, deductibles) 
  • Identify features that may be added to a home insurance policy, such as: 
    • Specific product coverage, such as for jewellery, art, collectibles or securities 
    • Sewer backup coverage
    • Flood coverage
    • High wind coverage
    • Earthquake coverage 
  • Identify additional types of coverage that a condominium insurance policy may provide, such as: 
    • Improvements and betterments
    • Supplemental coverage for condominium unit and/or common/shared space 
  • Explain the purpose of each type of condominium insurance coverage.  
  • Identify that as a condition of credit approval, a lender may require an individual to maintain home/condominium insurance on their property. 

REFERENCES

1 https://www.canada.ca/en/financial-consumer-agency/services/insurance/home.html 
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