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FL 220 License Exam > Chapter 4 - Dwelling Policies > Flashcards

Chapter 4 - Dwelling Policies Flashcards

1
Q

List the three types of dwelling coverage forms?

A

DP -1, DP -2, DP -3

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2
Q

What three perils are automatically included in DP -1

A

Fire, lightning, internal explosion

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3
Q

What are the optional perils that can be added with an endorsement on DP - 1 Dwelling Coverage?

A 
Wind & Hail
Aircraft
Riot or civil commotion
Vehicles
Volcanic Eruption
Explosion
Smoke
VMM
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4
Q

What are the 6 perils that are included in DP - 2 and not in DP - 1?

A 
Burglar Damage
Falling Objects 
Weight of Snow
Accidental Discharge
Accidental Tearing Apart, Cracking
Artificial Electric Current
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5
Q

List out the names for Coverage A - E for dwelling policies

A 
A - Dwelling
B - Other Structures
C - Personal Property
D - Fair Rental Value
E - Additional Living Expense
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6
Q

Mobile homes are eligible for which dwelling coverage form?

A

DP - 1

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7
Q

True or False - Dwellings on homes are eligible for dwelling policies

A

False

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8
Q

Is theft of personal property included on a DP - 3 form?

A

It is not but can be added by endorsement. Theft of property that is part of the dwelling/structures is covered as long as the property is not vacant.

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9
Q

For DP - 1 policies, does the coverage B limit increase the amount of insurance provided by coverage A?

A

No. Only for DP - 2 and DP - 3 forms, the coverage B limit is additional insurance.

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10
Q

How much is the Coverage B limit for DP 1 - 3 forms?

A

10% of coverage A

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11
Q

What loss valuation do Coverage A - C use for DP - 1 form?

A

A - ACV
B - ACV
C- ACV

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12
Q

What loss valuation do Coverage A - C use for DP - 2 form?

A

A - RC
B - RC
C - ACV

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13
Q

What loss valuation do Coverage A - C use for DP - 3 form?

A

A - RC
B - RC
C - ACV

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14
Q

For dwelling policies, what does Coverage B apply to?

A

Other structures on the described location that are detached from the dwelling. It can be separated by space, fence, or utility line.
Example - detached garage, shed, in-ground pool, outdoor storage building.

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15
Q

Is coverage provided if you rent out a structure that is detached from the dwelling?

A

No coverage is provided. Exception is if it is rented solely as a garage.

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16
Q

For dwelling policies, what does Coverage C apply to?

A

Personal property of the insured and members of the insured’s family that live there.

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17
Q

For dwelling policies, what types of property is not covered by Coverage C?

A

Currency, animals, paper records, computers, credit cards, grave markers, vehicles (other than those to help handicap and those used to service the location).

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18
Q

What percentage of Coverage C is given back to the Insured for losses to covered property anywhere in the world?

A

10%

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19
Q

Coverage E is automatically available under which DP forms?

A

DP -2 and DP - 3

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20
Q

What is the purpose of coverage D?

A

Provides coverage for indirect losses that occur as a result of direct losses to the covered property.
Automatically deducts continuing expenses like electric bills or mortgage payments.

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21
Q

Coverage D is additional insurance for which DP forms?

A

DP 2 and 3. Coverage D is included for DP 1 forms but it is not additional insurance.

22
Q

How is payment made under Coverage D?

A

Payments are made for the shortest amount of time necessary to repair the damaged portion of the dwelling that is usually rented.
If civil authority prevents the insured from using the dwelling because a separate location was directly damaged by a covered peril, then the fair rental value will be paid for no more than 2 weeks.

23
Q

What is the limit of insurance for Coverage D?

A

20% of Cov A

24
Q

What is the purpose of Coverage E?

A

Provides coverage for increased living expenses when the location where the Named Insured is living in becomes uninhabitable.
Examples - motel room, pet boarding, dining out.

25
Q

True or False - Debris Removal is included in all DP forms

A

True - it is included in the limit of insurance that applies to damaged property.

26
Q

Describe the purpose of Improvements, Alterations, and Additions

A

If the Insured is a tenant, it provides up to 10% of coverage for losses to the improvements made by the Insured.
In DP - 1, the coverage is included in the limit of insurance. In DP -2 and -3, it is additional insurance.

27
Q

What is the purpose of World Wide Coverage?

A

It provides up to 10% of Coverage C for a covered loss anywhere in the world. Coverage is included in the Coverage C limit.

28
Q

What is the purpose of the Reasonable Repairs coverage?

A

Pays for reasonable cost the insured incurs to protect covered property from further damage. It does not increase the limit of insurance

Example - a tarp covering a hole in the roof

29
Q

What is the Property Removed coverage?

A

Provides coverage against any covered peril if while the covered property is being removed from danger and is damaged.
Under DP - 1, coverage is provided for 5 days.
Under DP - 2 and - 3 it is provided for 30 days.
It does not increase the limit.

30
Q

What is the Trees, Shrubs, and Other Plants coverage?

A

Only on DP - 2 and - 3. Provides up to 5% of Coverage A with a limit of $500 per plant, for damage to plants that are not caused by wind/hail, snow, and theft.

This is additional coverage.

31
Q

Describe the Fire Department Service Charge Coverage

A

Provides up to $500 coverage for fire department charges incurred. Coverage does not apply if dwelling is within the city limits or municipality.
Deductible does not apply.

32
Q

List out the 10 “Other Coverages” that are included in Dwelling Policies

A
  1. Debris Removal
  2. Improvements Alterations, and Additions
  3. World Wide Coverage
  4. Reasonable Repairs
  5. Trees, Shrubs, and Other Plants
  6. Fire Department Service Charge
  7. Collapse
  8. Glass or Safety Glazing Material
  9. Ordinance or Law
  10. Property Removed
33
Q

Describe the Collapse coverage

A

Only included in the DP - 2 and - 3.
Provides coverage for collapse that is caused by Coverage C Named Perils, hidden decay, weight of contents, weight of rain, or collapse that occurs during remodeling or renovation.

Does not increase the limit of insurance

34
Q

What are the perils insured against on DP - 3 form for Coverage A, B, and C?

A

Coverage A and B are insured against open perils and and Coverage C is all of DP 2 perils.

35
Q

Define Collapse

A

The abrupt falling or caving in of a building or any portion of the building, making it uninhabitable. If the building is still standing or is in danger of caving in, it is not in a state of collapse.

36
Q

Describe the Glass or Safety Glazing Material Coverage

A

Included only in the DP - 2 and - 3 forms.
Provides coverage for Glass that is part of a covered building and is broken. Breakage due to earth movement is covered.
If the property is vacant for 60 days, it is not covered.
This provision does not apply to earth movement.

37
Q

Describe the Ordinance or Law coverage

A

Included only in the DP - 3 and - 3 forms.
Provides up to 10% of coverage A (also applies for Tenant’s Improvements, Alterations, and Additions) and is additional Insurance.

38
Q

Generally, Earth Movement is excluded except when…

A

earth movement causes a direct loss by fire or explosion.

39
Q

Generally, Water Damage is excluded except when…

A

a direct loss by fire or explosion results from water damage

40
Q

Power Failure is generally excluded except when…

A

the power failure occurs on the described premises

41
Q

True or False - Any consequences resulting from War are covered

A

False. All consequences of war are excluded

42
Q

Automatic Increase in Insurance Endorsement is calculated how?

A

Per Day

43
Q

What is the purpose of the Automatic Increase in Insurance Endorsement?

A

To offset inflation

44
Q

What are the two endorsements available for theft coverage and in what situation would you choose one over the other?

A

Broad Theft Coverage is used for Owner Occupied

Limited Theft Coverage is used for Tenant Occupied`

45
Q

What is the difference between Broad and Limited Theft Coverage?

A

Broad Theft Coverage is used for Owner Occupied Dwellings and includes off-premises coverage for property owned/used by the insured

46
Q

What are the similarities between Broad and Limited Theft Coverage?

A

Both do not provide VMM coverage is the dwelling was vacant for 60 days.
Both provide coverage for covered property at the location.

47
Q

What is the purpose of Dwelling Under Construction Endorsement?

A

Provides coverage for dwellings under construction. Coverage A limit is provisional and is based on the completed building value.
Once completed, the Insured needs to notify the Insurer and has 30 days after completion to let the Insurer know.

48
Q

What is the purpose of the Personal Liability Supplement?

A

It is an endorsement that provides personal liability coverage if desired. Liability is not automatically included in Dwelling Policies

49
Q

What are the two sections of the Personal Liability Supplement?

A

Coverage L - Personal Liability

Coverage M - Medical Payments to Others

50
Q

Coverage M provides coverage for medical expenses occurred within how many years of the accident

A

3 years

FL 220 License Exam (14 decks)

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