Dwelling Mod B

The insured carries an unendorsed DP-3 dwelling policy on his home and personal contents. While traveling abroad someone broke into the home and stole $200 in cash, a shotgun valued at $1,000, and other household items valued at $2,000. Damage caused by the burglars is $1,500. Assuming no deductible applies to their coverage how much would be paid?

$1,500 The DP-3 only provides damage to covered property caused by the burglars. Theft is excluded under the DP-3 unless endorsed with the theft endorsement.

Roxanne has her home covered under a DP-2 policy. She regularly works on her laptop computer at the bar in her kitchen. One day she decided to go out for lunch, leaving her laptop plugged in and turned on. While she was out, the electrical cord attached to her laptop began to short out and create sparks. One of the sparks fell on a dish towel Roxanne had left on the bar and it caught fire. This led to a larger fire that caused extensive damage to Roxanne's kitchen. The damage caused to the kitchen came to $15,000. The laptop was destroyed and it's ACV was $1,800. The policy did not have a deductible form attached. How much will be paid on this claim? A. $15,000. B. $16,800. C. Nothing because Roxanne should not have left her laptop plugged in and turned on when she wasn't at home. D. $13,200.

A. $15,000. The policy will pay for the damage to the kitchen caused by the fire, but it excludes coverage for the laptop computer under the "Artificially Generated Electrical Current" peril.

The "Sudden and Accidental Tearing Apart, Cracking, Burning or Bulging" broad form peril applies to all of the following, EXCEPT: A. Any structural wall of the covered dwelling or other structure. B. A dishwasher within the covered dwelling. C. The hot water heater in the covered dwelling. D. An automatic fire sprinkler system within the covered dwelling.

A. Any structural wall of the covered dwelling or other structure. The "Sudden and Accidental Tearing Apart, Cracking, Burning or Bulging" broad form peril does NOT apply to structural walls of the dwelling.

An insured is covered under a DP-2 broad form Dwelling policy. A water pipe has frozen and burst and the insured has suffered floor and ceiling damage in his two-story home. The cost to remove and replace the walls to get to the pipe is $300. The cost to repair the floor is $400. The pipe that burst must now be replaced with a more expensive option to meet newer building codes. The cost to replace the pipe is $200. How much will the insurer pay? A. $300. B. $400. C. $700. D. $900.

C. $700 The form will not cover the pipe that burst and caused the damage, but will cover the other damages.

Under the DP-3 special form, which of the following losses would NOT be covered? A. Damage to the dwelling that is caused by an infestation of mice. B. A picture window is blown out during a tornado. C. Vandalism damage caused by a prankster to a dwelling that has been vacant for 14 days. D. A dwelling's roof caves in due to the weight of ice and snow.

A. Damage to the dwelling that is caused by an infestation of mice The broad form is a named peril form and does not list damage caused by wild animals as a covered peril.

Which of the following Dwelling forms provides "open peril" coverage for dwellings and other structures? A. The DP-3 special form. B. The DP-1, DP-2, and DP-3 forms all provide this coverage. C. The DP-2 broad form and the DP-3 special form. D. The DP-1 basic form and the DP-2 broad forms.

A. The DP-3 special form. The DP-3 special form is the only Dwelling form that provides "open peril" coverage on the dwelling and other structures. The DP-1 and DP-2 are "named peril" forms.

Which of the following statements is TRUE regarding the DP-2 cause of loss form? A. The insured must select the EC perils on the DP-2 form, the V&MM coverage is automatically included, and the broad form perils are automatically included. B. The EC perils and the V&MM coverage must be selected and an additional premium paid, but the broad form perils are automatically included. C. It automatically includes the EC perils, V&MM coverage must be selected and an additional premium paid, but the broad form perils are automatically included. D. It automatically includes the EC perils, V&MM coverage, and the broad form perils.

D. It automatically includes the EC perils, V&MM coverage, and the broad form perils.

Tori owns a cabin in the Ozark Mountains that she rents to Vincent. Tori has the cabin covered under a DP-2 policy. One cold evening, Vincent started a large fire in the cabin's fireplace and left the room to start dinner in the kitchen. Vincent didn't realize that he forgot to open the chimney flue before starting the fire and by the time he came back into the living room, it was completely filled with smoke. Vincent immediately opened the doors and windows to "air-out" the cabin but when the smoke cleared, there was extensive soot damage to the walls, ceilings and furnishings in the room. Which of the following statements is true regarding how this claim will be handled? A. The claim will be paid because the DP-2 extends the peril of "smoke" to cover smoke damage from a fireplace. B. The claim will be denied because Dwelling policies exclude fireplace smoke damage. C. The claim will be paid under Vincent's renters insurance policy. D. The claim will be paid only if the DP-2 is endorsed to cover fireplace smoke.

A. The claim will be paid because the DP-2 extends the peril of "smoke" to cover smoke damage from a fireplace The DP-2 includes the broad form perils that extend the peril of "smoke" to cover smoke from a fireplace, therefore the claim will be paid.

Which of the following statements is TRUE regarding the DP-3 special form? A. It provides named peril coverage on both the structure and the personal property. B. It provides open peril coverage on the structure and named peril coverage on the personal property. C. It provides named peril coverage on the structure and open peril coverage on the personal property. D. It provides open peril coverage on both the structure and contents.

B. It provides open peril coverage on the structure and named peril coverage on the personal property.

Under the DP-3 special form, which of the following would be covered? A. Earthquake. B. Theft of outside lighting attached to the dwelling. C. Vandalism in a dwelling that has been vacant for 89 days. D. The gradual soot build-up on the siding of the covered dwelling from the insured's gas grill being used over a period of years.

B. Theft of outside lighting attached to the dwelling. The special DP-3 form provides open peril coverage on the structures. This covers the light because it is attached to the building.

Max has his home covered under a DP-2 form. During a storm, a large oak tree in Max's yard splits in two and one side of the tree falls against the back wall and roof of the covered dwelling. Which of the following accurately describes the coverage that will apply to Max's loss? A. Max will be covered for the damage to the exterior wall and roof and to replace the tree. B. No coverage will apply because falling trees are excluded. C. Max will be covered for the damage to both the exterior of his dwelling, the interior of his dwelling, and to replace the tree. D. Max will be covered for the damage to both the exterior of his dwelling and the interior of his dwelling.

D. Max will be covered for the damage to both the exterior of his dwelling and the interior of his dwelling Under the "Falling Objects" broad form peril, Max would first be covered for damage to the exterior of his dwelling. However, because there was damage to an exterior wall and the roof, leaving the interior of his dwelling open to the elements, he will also be covered for damage to the inside of his dwelling. The "Falling Objects" peril specifically states that the falling object itself is NOT covered. Therefore, the tree would not be covered