Dwelling Mod C

Which of the following is an "other coverage" provided on a DP-1 form? A. Glass or Safety Glazing Material. B. Fire Department Service Charge. C. Collapse. D. Trees, Shrubs, and Other Plants.

B. Fire Department Service Charge The Fire Department Service Charge is the only item in the answer choices that is included on the DP-1 form as an "other coverage".

Which of the following is NOT a general exclusion of all the Dwelling policy forms? A. Nuclear hazard. B. Lightning. C. War. D. Flood.

B. Lightning

If the insured carries a DP-2 Dwelling form and insures the dwelling for 80% of its replacement cost value (the co-insurance requirement), what will he be paid if his 30-year-old roof sustains $10,000 in damages (disregarding any deductible)? A. $333 B. $5,000 C. $10,000 D. $8,000

C. $10,000 If the insured carries 80% to value (co-insurance) he would be entitled to full replacement cost coverage for his damaged roof. Nothing to calculate here, full replacement cost is $10,000.

An insured has his home covered under Dwelling policies with three different insurance companies. Company A provides 50% of the coverage, Company B provides 45% of the coverage, and Company C provides 5% of the coverage. When settling a claim for $10,000 worth of damage to the dwelling, what will Company C pay? A. $10,000. B. $1,000. C. $4,500. D. $500.

D. $500 In this situation, Company C will pay $500. 5% of $10,000 is $500. You should be able to figure this in your head by asking yourself "What is 10% of $10,000?" 10% of $10,000 is $1,000. Then, you can simply figure that 5% is half of 10%, which would be $500.

Kari has her home covered under a DP-3 form and has suffered a loss that will require major repairs. How much coverage does she have to comply with laws causing an increase in costs due to new regulations requiring newer plumbing materials be used when the repairs are made? A. 10% of the Coverage A limit that reduces the limit of liability. B. 20% of the Coverage A limit as additional insurance. C. 5% of the Coverage A limit that reduces the limit of liability. D. 10% of the Coverage A limit as additional insurance.

D. 10% of the Coverage A limit as additional insurance. In Kari's situation, she will have 10% of the Coverage A limit as additional insurance under the "Ordinance or Law" other coverage of the DP-2 and DP-3.

Which of the following is NOT excluded under Coverage C of a Dwelling policy? A. An expensive dog purchased by the insured as a pet. B. An expensive sports car stored in a covered garage. C. A granite marker on a grave located on the insured premises. D. A canoe used on the premises by the insured.

D. A canoe used on the premises by the insured A canoe is NOT excluded. All the other answer choices ARE Coverage C exclusions.

Which of the following is NOT an "other coverage" of the DP-1 form? A. World-Wide Coverage. B. Collapse. C. Alterations and Additions. D. Reasonable Repairs.

B. Collapse The "other coverage" for collapse is included on the DP-2 and DP-3 forms but not the DP-1.

The insured has suffered roof damage as a result of a tornado. He makes temporary repairs until permanent repairs can be made. He spends $1,500 for this work. How much, if any amount, will the DP-2 Dwelling policy pay on the repairs? A. $0 B. $1,000 C. $1,500 D. $500

C. $1,500 The policy will pay all of the costs due to the "reasonable repairs" clause in the policy. This pays for the cost to make reasonable repairs in order to protect covered property from further loss.

Under a standardized Dwelling form, a loss by a covered peril for Improvements, Alterations and Additions is covered for up to: 5% of the Coverage C limit of liability.$1,000.5% of the Coverage A limit of liability.10% of the Coverage C limit of liability.

10% of the Coverage C limit of liability. Under a standardized Dwelling form, a loss by a covered peril for Improvements, Alterations and Additions is covered for up to 10% of the Coverage C limit.

Under a standardized DP-2 or DP-3 policy, what is the maximum that would be paid for additional living expenses if Coverage A was $60,000? A. $12,000 B. $6,000 C. $7,000 D. $9,500

A. $12,000 The form provides 20% for additional living expenses and fair rental value. You can figure this out in your head by asking yourself, "What is 10% of $60,000" and then double it. 10% of $60,000 is $6,000 x 2 = $12,000. This is a coverage that is frequently amended to comply with state laws, so please notice that this question is asking about the STANDARDIZED policies.

Sam's home is located in a rural area and is covered by a standardized DP-2 Dwelling form with a $500 deductible form attached. He experiences a fire at his home and has to call the local volunteer fire department to extinguish the fire. He receives a bill from the fire department in the amount of $800. How much of the bill will Sam's DP-2 form cover? A. $0. B. $300. C. $500. D. $800.

C. $500 The policy will provide $500 to pay for fire department charges incurred when the fire department is called to save or protect covered property from a peril insured against. This coverage is additional insurance and no deductible applies. PLEASE NOTE: This question is asking about the STANDARDIZED DP-2 form. If the state statutes in the state for which you are studying amends this amount, we will cover this amount in the course and in another question.

Under a standardized Dwelling policy, when an insurer opts to repair or replace the damaged property with like kind and quality, they must do so: A. Within 60 days of the loss. B. Within 60 days of receiving the insured's proof of loss. C. Within 30 days of the loss. D. Within 30 days of receiving the insured's proof of loss.

D. Within 30 days of receiving the insured's proof of loss