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Flashcards in Dwelling Policy Deck (21)
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1
Q

Dwelling Program Eligibility

A

No more than 4 Units
or
5 roomers or boarders.
-
Mobile homes are eligible under Basic Form DP-1 if they are permanently affixed to a foundation.

NO FARMS EVER.

2
Q

DP-1 (Basic Form)

A

Losses to dwelling and contents paid on an ACTUAL CASH VALUE BASIS (ACV).

3
Q

DP-2(Broad Form)

A

Losses to DWELLINGS/OTHER STRUCTURES are paid on a REPLACEMENT COST BASIS, and CONTENTS on an ACV basis.

4
Q

DP-3(SPECIAL FORM)

A

OPEN PERIL BASIS BOY. Specific coverages found under A and B are excluded:
-Collapse
-Freezing, weight of ice/water, thawing on patios fences swimming pools, foundations, piers, etc
-Theft of property not part of a covered building/structure
-Theft in/to a dwelling/structure under construction
-Wind, hail, etc to outdoor radio, TV antennas, trees, shrubs, etc
-VMM if vacant over 60 days
-Leakage of water over a period of time
-Wear and tear, mechanical breakdown, smog, rust, smoke form agricultural smudging or industrial operations, pollution, animals.
——
Personal Property is covered under the named perils of DP-2.
-
Dwelling loss is replacement cost basis and personal property on on actual cash value basis.

5
Q

What are the 5 main dwelling coverages?

Hint:(A,B,C, etc)

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

What does Coverage A include?

What is Coverage A limit of insurance?

A

Dwelling

Includes materials and supplies used for construction, building equipment and outdoor equipment.
-
No land coverage.
-
Coverage A should represent the dwellings replacement value. Limit of insurance appears on declarations as a SPECIFIC LIMIT.

7
Q

What is Coverage B?

What is Coverage B limit of insurance?

A

Other Strucutres

10% of the Coverage A limit.
-
Does not increase limit of insurance for DP-1, but does for DP-2 + DP-3.

Does not cover damage caused by wind, hail, ice, etc to outdoor radio and tv antennas, including lead in wiring.

8
Q

What is Coverage C?

What is the Coverage C limit of insurance?

A

Personal Property

PP of a tenant or boarder is not covered.
-
Automatic coverage for PP moved to a new residence for 30 days.
-
Exclusions; currency, animals, aircraft and watercraft EXCEPT CANOES/ROWBOATS, Motor vehicles other than those used to assist the handicapped on the premises, data, grave markers.
-
Insured choice for limit of insurance, 10% of Cov C limit when loss by an insured peril to covered property anywhere in the world.; My camera falls into a volcano.

9
Q

What is Coverage D?

What is the limit of insurance for Coverage D?

hint: FAIR

A

Provides insurance for indirect losses; pays the fair rental value of a location rented to others if unfit for normal use because of loss covered by a policy.
-
If civil authority prevents the insured from using the crib to rent because the bando next door is damaged by a peril found on your policy, the value will be paid for no more than 2 weeks.
-
Payments will be made for the shortest time necessary to repair .
-
Cancellation of lease not covered.
-
Cov D limit of insurance is up to 20% of Cov A. Provided under all dwelling forms.

10
Q

What is Coverage E?

What is the limit of insurance Coverage E?

Hint: +

A
Additional Living Expenses
-
Provided coverage for indirect losses that result a result of direct losses to property. 
-
Not included in DP-1
-
Cov E limit is up to 20% of Cov A. 
-
Examples: Motels, dining out, boarding pets, etc
11
Q

How are losses settled on each dwelling policy?

Bonus points: What is the coverage % on each one.

A
DP-1 = Always ACV for contents and dwelling
-
DP-2 = Dwelling/Structures RC, PP ACV
-
DP-3 = Dwelling/Strucutres RC, PP ACV
----
BONUS: Coverage A = Limit of Liability
B 10% of A
C = Insured Choice
D 20% of A
E 20% of A
12
Q

How much of Cov C limit of insurance is available for IMPROVEMENTS, ALTERATIONS, and ADDITIONS?

A

DP-1, it’s included in the limit of insurance, in DP-2/3 it is additional insurance.

13
Q

How much of Cov C limit of liability is available WORLD-WIDE?

A

Does not apply to canoes/rowboats, or property owned by guest/servants.

14
Q

How long is property that’s removed covered under each DP?

A
Under the DP-1, 5 days.
-
Under DP-2/3, 30 days.
-
note: Direct loss has to occur by covered peril
15
Q

Is coverage provided for Trees, Shrubs, and Other Plants under each DP form?

What’s the limit of insurance for Trees, shrubs, and Other Plants?

What’s the most that will be paid for any one tree, shrub, or plant?

A

NO HAIL, SNOW, ICE, THEFT
-
Limit of insurance of 5% of Cov A, with a MAX of $500 for any one plant, tree, shrub.

16
Q

How much will be paid out for a Fire Department Service Charge under DP forms?

A

$500 - No deductible

17
Q

What DP forms cover collapse?

A

Collapse does not include settling, cracking, shrinking, bulging, or expansion.

18
Q

Breakage of Glass or Safety Glazing Material is covered under which DP forms?

How are losses settled?

A

No coverage if the dwelling was vacant for 60 days

19
Q

What’s the limit of insurance for Ordinance or Law?

What DP forms can provide this coverage as additional insurance?

A

10% of limit applies to improvements, alterations, or additions.

20
Q

General Exclusions for DP forms

A

Ordiance or Law; Earth Movement; Water Damage; Power Failure; Neglect; War; Nuclear Hazard; Intentional Loss; Non-concurrent exclusions.

21
Q

Personal Liability Supplement

Coverage L + Coverage M

A

Coverage L and Coverage M can be added by endorsement to dwelling forms.
Covers Personal Liability and Medical Payments to OTHERS.
-
Coverage also provided for defense
-
Medical payment claims can be done within 3 years of the accident.
-
No coverage to named insured or regular residents of the insured household except residence employees.