Unit 7

Question 1

Dwelling Policy

Answer 1

provides protection for individuals and families against loss to their dwelling and personal property

Question 2

The Dwelling policy provides more limited Property coverage than what policy?

Answer 2

Homeowners policy

Question 3

What does the Dwelling policy NOT cover?

Answer 3

peril of theft

Question 4

the unendorsed Dwelling policy provides

Answer 4

Property coverage only

Question 5

the Homeowners policy provides

Answer 5

a package of Property and Liability coverages

Question 6

To be covered under a Dwelling policy, a dwelling may have ______

Answer 6

up to five boarders and up to four apartments

Question 7

Does the dwelling have to be occupied by the owner?

Answer 7

No, and it can be under construction as well

Question 8

A Dwelling policy may also be used to insure what type of home?

Answer 8

mobile homes meeting certain qualifications (permanently located, may only be covered under Basic form)

Question 9

the owner of a home that is rented to tenants can insure it under what policy?

Answer 9

Dwelling policy (cannot be homeowners policy)

Question 10

Dwelling property does not have to be only residential, it can also be ____

Answer 10

incidental business and professional occupancies

Question 11

Dwelling policy covers the named insured and who?

Answer 11

his or her spouse if they live in the same household as the insured

Question 12

the Dwelling basic form is also known as

Answer 12

DP-1 and DP 00 01

Question 13

Basic form provides what 4 coverages?

Answer 13

coverage A - Dwelling
coverage B -Other structures
coverage C - personal property
Coverage D - fair rental value

Question 14

Coverage B - other structures is also known as

Answer 14

Appurtenant - adjacent to but not in contact with

Question 15

coverage A - Dwelling covers _____

Answer 15

the dwelling, structures attached, materials and supplies, and building or outdoor equipment (attached car, garage)

Question 16

Coverage B - other structures insures ____

Answer 16

buildings on the premises that are separated from the dwelling by a clear space or connected only by a fence, utility line, etc (not used for farming, manufacturing, commercial purpose)

Question 17

Coverage C - personal property covers ____

Answer 17

insured’s personal property that is at the described location and is used to the dwelling occupancy

Question 18

What items of personal property are not covered in Coverage C? (know 4)

Answer 18

-MONEY, accounts, deeds
-bank notes, coins, medals,
-books of account, drawings, paper records, wires, discs
-credit cards and transfer cards
-ANIMALS, BIRDS, FISH
-MOTOR VEHICLES (other than ones used to maintain the premise)
-BOATS (other than rowboats/canoes)

Question 19

Coverage D - fair rental value

Answer 19

available if covered property loss to the dwelling makes the building uninhabitable and insured can’t collect the rent if loss had not occurred (10% of insurance on dwelling is available for coverage)

Question 20

the only perils that are automatically covered under the basic form are

Answer 20

-fire
-lightning
-internal explosion
-steam explosions (if equipment is owned leased or operated by insured)

Question 21

extended coverage perils

Answer 21

insured additional options with basic form

Question 22

extended coverage perils examples REV C SHAW (V)

Answer 22

-riot
-explosion (not internal it replaces it)
-vehicles
-smoke (not sleet)
-hail
-civil commotion
-aircraft
-windstorm
-volcanic eruption

Question 23

Vandalism and malicious mischief (V&MM) can be purchased in conjunction with

Answer 23

the extended coverage perils

Question 24

Dwelling basic form provides certain other coverages

Answer 24

-debris removal
-property removed
-reasonable repairs

Question 25

fire department service charge

Answer 25

$500 when fire department is called for property from a peril insured against (no deductibles apply)

Question 26

basic form exclusions

Answer 26

-losses from ordinances or laws that require more expensive reconstruction than the original structure -losses from earth movement (not direct loss by fire from earth movement) -water damage -power interruption -war -nuclear hazard

Question 27

Broad form (DP-2 DP 00 02)

Answer 27

named peril policy that lists the perils that dwellings, other structures, and personal property are insured against

Question 28

the broad form covers

Answer 28

standard and optional perils available on the basic form (fire, lightning, extended coverage)

Question 29

DP-2 additional perils

Answer 29

- damage to covered property - weight of ice, snow, sleet - falling objects

Question 30

covered perils - special form always means

Answer 30

opened peril

Question 31

special form (DP-3 DP 00 03) provides

Answer 31

open peril coverage on dwelling and other structures (personal property covered on peril basis)

Question 32

all three dwelling forms provide basic policy coverages

Answer 32

- coverage A : dwelling - coverage B : other structures - coverage C : personal property - coverage D : fair rental value

Question 33

DP - 2 and DP - 3 also include what coverage?

Answer 33

coverage E - additional living expense (after covered loss)

Question 34

what does Coverage E include?

Answer 34

reasonable motel, dining, laundry, and transportation expenses

Question 35

Coverage E notes

Answer 35

can be added to DP -1 by endorsement - additional living expenses if you have to live on your own

Question 36

DP - 2 and DP -3 include

Answer 36

other coverages not contained in DP - 1 (will not pay more than 500 for trees, shrubs, plants)

Question 37

collapse

Answer 37

pays for the collapse of the dwelling cased by a list of perils

Question 38

glass or safety glazing material

Answer 38

pays for the breakage of glass or glazing material thats part of a covered building caused by earth movement is covered

Question 39

replacement cost coverage

Answer 39

part of DP - 2 and DP - 3 but not 1

Question 40

DP - 2 and DP -3 settle losses to

Answer 40

personal property at actual cash value

Question 41

in DP - 2 and DP - 3 losses to the dwelling and other structures are paid on

Answer 41

a replacement cost basis (as long as insured carries insurance equal to 80% or more)

Question 42

if the insured does not carry enough insurance to qualify for replacement cost coverage...

Answer 42

will be paid actual cash value or proportion of replacement cost (whichever is larger)

Question 43

proportional replacement cost is calculated by

Answer 43

dividing the amount of insurance by the amount requested to carry to qualify for replacement cost coverage

Question 44

insurance carried/insurance required x amount of loss = amount of reimbursement

Answer 44

remember formula