Unit 6 Part A Flashcards
(23 cards)
dwelling insurance policy
unique from homeowners; does not require to be owner-occupied
dwelling policies are referred to as __________ policies because they insure only property. therefore, they do not automatically cover the peril of ______ or _______ _________.
monoline
theft
personal liability
5 types of property eligible for dwelling liability
- vacation homes
- rental property
- dwelling with 1-4 units, each unit accommodating occupants
- dwellings under construction *endorsement
- mobile homes of certain qualification (permanently located) *endorsement
____ dwellings are NOT eligible for dwelling coverage
farm
Coverage A Dwelling
“dwelling”
covers the dwelling, structures attached, materials used in construction or repair, and other structures at the location
Cov B Dwel
“other structures”
insures buildings on premises separated from dwelling by a clear space or connected only by fence, etc.
building may NOT be commercial or farming
Cov C Dwel
“personal property”
covers NI personal property that is described to be at the location and usual. property by guests may be covered at NI request
5 items NOT covered under Coverage C
- animals
- aircraft
- motor vehicles
- boats
- accounts, bills, currency, etc.
Cov D Dwel
“fair rental value”
covers NI in event a covered loss makes the rental portion of property unfit for use.
20% of insurance is available for this coverage and may be limited to a maximum payment period of 2 weeks
Cov E Dwel
“additional living expense”
included in DP-2 and DP-3, pays for additional living expenses NI incurs after a covered loss, such as dining, laundry, motel, etc.
Limit is 10% fo COV A and applies when NI occupies the premises and for the periof of when the dwelling needs repair. Limited to 2 weeks payment.
Dwelling Basic Form, DP-1 provides certain other coverages that are automatically included, these are… (8)
- other structures
- debris removal
- property removed
- reasonable repairs
- improvements, alterations, additions
- fire dept service charge up to $500, no deductible
- worldwide coverage
- rental value
“property removed” as covered by DP-1
covers loss to property that occurs while property is being removed to protect it from peril for up to 5 days
“reasonable repairs” as covered by DP-1
pays for reasonable costs to make necessary repairs to protect property from further damage (ex. cost to temporarily fix a hole in the roof)
“worldwide coverage” as covered by DP-1
provides 10% of Cov C limit for covered personal property while located anywhere in the world
“rental value” as covered by DP-1
covers up to 20% of Cov A limit of liability for loss of fair rental value
DP-2 and DP-3 include DP-1 coverages plus some additional; these are: (4)
- tree, shrubs, other plants
- collapse
- glass/safety glazing material
- ordinance or law
In DP-2 and 3, property removed is covered for __ days, as opposed to only __ days in DP-1
30
5
“trees, shrubs, plants” as covered in DP-2 and 3
pays up to 5% of Cov A limit for damage to trees, shrubs, or plants, no more than $500 for any one plant
“collapse” as covered in DP-2 and 3
pays for collapse of dwelling caused by a specified list of perils – collapse resulting from hidden decay or vermin is not covered if NI knew prior to damage
“glass, safety glazing material” as covered in DP-2 and 3
pays for breakage of said material and damage to property caused by breakage
“ordinance or law” as covered in DP-2 and 3
allows payment of up to 10% of Cov A for increased cost to repair/rebuild to conform to applicable building codes
DP-1 pays all losses at ___; DP-2 and 4 pay losses on a __________ ______ ______ with no deduction for ________.
ACV
replacement cost basis
depreciation
perils automatically covered by DP-1 (3)
fire
lightning
internal explosion
