Chapter 4 Dwelling Policy Flashcards
Dwelling Property Program
to be eligible, dwellings must be used principally for residential purposes, cannot contain more than 4 dwelling units, and can have no more than 5 roomers or boarders
What are the dwelling coverage forms?
DP-1 (Basic)
DP-2 (Broad)
DP-3 (Special)
Coverage A
applies to the dwelling described in the declarations, used principally for residential purposes, including structures attached to the dwelling, such as an attached garage, carport, breezeway or deck
Coverage B
applies to other structures on the described location if they are separated or detached from the dwelling by clear space, a fence, or a utility line
Coverage C
applies to household and personal property usual to the occupancy as a dwelling if it is owned by the insured or by members of the insured’s family who reside with the insured
Coverage D
Fair Rental Value - provides insurance for indirect losses that occur as a result of direct losses to property insured under Coverages A, B, or C that are covered by the policy
Coverage E
Additional Living Expenses - pays any necessary increases in living expenses incurred by the named insured when a covered loss makes the unit in which the named insured lives uninhabitable
Property Removed
additional coverage covers property against direct loss for all perils while being removed from the described location because the property at the described location is endangered by an insured peril
Trees, Shrubs, and Other Plants
additional coverage that provides insurance at a limit of up to 5% of the Coverage A limit, with a maximum of $500 for any one tree, shrub, or plant
Ordinance or Law
excluded and is the increased costs due to the enforcement of any ordinance or law regulating the use, construction, demolition, remodeling, renovation, or repair of property – including removal of debris
Broad Theft Coverage
an endorsement that provides insurance for the perils of theft, attempted theft, and vandalism or malicious mischief that results from theft or attempted theft
What is the difference between Broad & Limited Theft Coverage?
Broad Theft Coverage is owner occupied, ON & OFF premises.
Limited Theft Coverage is tenant occupied & ONLY on premises
Dwelling under Construction endorsement
provides the insured an average amount of insurance for Coverage A during the course of a dwelling’s construction
Personal Liability endorsement
provides coverage for personal liability and medical payments to others and may be added to any of the dwelling forms of coverage
