DWELLING INSURANCE - B
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?
$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?
Damage to the dwelling that is caused by an infestation of mice.
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?
Max will be covered for the damage to both the exterior of his dwelling and the interior of his dwelling.
Which of the following Dwelling forms provide "Open Peril" coverage for dwellings and other structures?
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.
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?
The DP-3 only provides damage to covered property caused by the burglars. Theft is excluded uner 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?
$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:
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.
Which of the following statements is TRUE regarding the DP-2 cause of loss form?
It automatically includes the EC perils, V&MM coverage, and the broad form perils.
Which of the following statements is TRUE regarding the DP-3 special form?
It provides open peril coverage on the structure and named peril coverage on the personal property
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?
The claim will be paid because the DP-2 extends the peril of "smoke" to cover smoke damage from a fireplace.
Under the DP-3 form, what can be covered
Theft of outside lighting attached to the dwelling.
