3 - B Dwelling
Dwelling coverage would provide indemnification for damages to all of the following items EXCEPT: A. A car parked in a detached garage B. A sun porch built away from the home C. A pool house on the property D. A stairwell leading up to the front door
A. A car parked in a detached garage
Three weeks after Susan bought a DP-3 from Acme Insurance, the insurer decided to attract more customers by broadening the coverage offered by their DP-3, at no additional cost. Which of the following is TRUE? A. Acme Insurance must automatically apply the broader coverage to Susan's policy B. Acme Insurance must apply an automatic, pro-rated discount to Susan's policy C. Acme Insurance must notify Susan of the change within 10 days and allow her to cancel and re-issue her policy with the new coverage D. Susan must submit a new application to benefit from the new, broader coverage
A. Acme Insurance must automatically apply the broader coverage to Susan's policy
Bob has a home in Florida with full replacement cost insurance coverage. After a severe hurricane levels his home, the property is declared a total loss. Bob is so discouraged that he takes several months to decide whether it is worth it to rebuild. Which of the following statements is TRUE? A. Bob's insurer must pay the full replacement cost of the property without waiting for proof that Bob has rebuilt his home. B. Bob must submit all receipts for completed work to his insurer within 6 months of the loss in order to be indemnified. C. Bob must notify his insurer of his intent to rebuild within 180 days of the loss in order to be indemnified. D. Bob's insurer must pay the ACV of Bob's property immediately, but can wait until Bob submits proof of his rebuilding expenses before paying the full replacement cost.
A. Bob's insurer must pay the full replacement cost of the property without waiting for proof that Bob has rebuilt his home.
Dan has a DP-3 policy on his $100,000 home. A tree falls onto his detached garage during a storm and breaks through the roof, causing $5,000 in damage. Under which coverage within the dwelling policy would the damage to the roof possibly be covered? A. Coverage A B. Coverage B C. Coverage D D. Coverage C
A. Coverage A
Francois has a DP-3 policy on his home, which covers him from most losses on an open-peril basis. He likes to collect old films, many of which are recorded on safety film (cellulose acetate). The problem is that cellulose acetate film gradually breaks down over time and will eventually "self destruct." The films are uninsurable for gradual breakdown under the DP-3 policy because: A. Damage caused by an inherent vice is excluded B. They are extremely flammable C. They are essentially food products D. They have depreciated to have no actual cash value
A. Damage caused by an inherent vice is excluded
Dwelling policies exclude inherent vice because: A. Items containing inherent vice will eventually breakdown or self-destruct B. Theft of anything not attached to the structure is excluded C. It is passed down from one vice to the next D. Vandalism usually occurs when inherent vice overrides the will
A. Items containing inherent vice will eventually breakdown or self-destruct
Which of the following statements is TRUE about coverage C under a DP-2 or DP-3? A. Rowboats and canoes are covered, but only while on the premises B. Boats of any kind are covered, but only while on the premises C. Coverage for boats of any kind is excluded under "general exclusions" D. Coverage for rowboats and canoes is excluded; other boats are covered
A. Rowboats and canoes are covered, but only while on the premises
Debris removal, reasonable repairs, ordinance or law, fire department service charge, and trees / shrubs / plants are all examples of what?
Additional coverages
Christina owns a home insured by a $200,000 DP-3 policy. When she purchased the home, she fixed up the detached garage, turning it completely into a studio apartment, which she now rents out. One day, a fierce windstorm blows the roof off her home and the studio rental. How much of her detached garage will be covered under this DP-3 policy? A. 10% under coverage B B. $0 C. Up to $50,000 D. $200,000 maximum for both structures
B. $0
A windstorm passes over Blake's property, causing damage to his roof and tearing up several trees and shrubs in the process. Assuming Blake carries a $120,000 DP-2 on his home, with a trees, shrubs, and other plants endorsement, what is the maximum Blake can receive for his 15 damaged plants? A. $7,500 - All perils are covered and all damaged plants are covered at $500 per plant B. $0 - Wind is not a covered peril under the trees, shrubs, and other plants coverage C. $500 - Only one occurrence is paid D. $6,000 - All perils are covered and damaged plants are covered at $500 per plant, up to 5% of coverage A limit
B. $0 - Wind is not a covered peril under the trees, shrubs, and other plants coverage
A dryer fire scorches the interior of Bill's home, and he is billed $627 by the fire department. Assuming Bill has the fire department service charge additional coverage, how much will Bill have to pay out of pocket? A. $0 B. $127 C. $427 D. $377
B. $127
Which of the following properties would NOT qualify for a dwelling policy? A. A four-plex with 5 tenants B. A 5-family dwelling C. A permanently installed mobile home D. A single-family dwelling owned by a partnership
B. A 5-family dwelling
In a dwelling policy, coverage for a stand-alone lamp post in the front yard would fall under: A. Coverage C B. Coverage B C. Coverage A D. Coverage D
B. Coverage B
Dwelling policies and homeowners policies provide a variety of insurance protections for consumers. What is the primary difference between a typical homeowners policy and a dwelling policy? A. Dwelling policies do not provide coverage for personal possessions B. Dwelling policies do not provide liability insurance C. Dwelling policies do not cover owner-occupied properties D. Dwelling policies do not offer "loss of use" coverage
B. Dwelling policies do not provide liability insurance
Knightley Insurance Co. decides not to renew Emma's homeowners policy, which she has had for 6 years. Which of these statements is TRUE? A. Emma can keep her policy active by paying the next year's annual premium in advance. B. Knightley Insurance must notify Emma of the non-renewal at least 120 days before her policy expires. C. Knightley Insurance must submit an application on Emma's behalf for coverage under the Citizens Property Insurance Corporation. D. Knightley Insurance may not terminate Emma's policy because it has been in effect for over 5 years.
B. Knightley Insurance must notify Emma of the non-renewal at least 120 days before her policy expires.
Which of the following coverages would need to be added by endorsement to a DP-3? A. Other structures B. Medical payments C. Loss of use D. Personal property
B. Medical payments
Joe has a basic DP-1 policy on his home, without any endorsements. During a storm, a tree limb is blown down onto his attached garage. The limb crashes through the roof and lands on Joe's water softener tank, destroying it completely. Which of these damages would be covered under coverage A in Joe's policy? A. The water softener B. None C. The roof D. Both the water softener and the roof
B. None
Joe has a basic DP-1 policy on his home, without any endorsements. During a storm, a tree limb is blown down onto his attached garage. The limb crashes through the roof and lands on Joe's water softener tank, destroying it completely. Which of these damages would be covered under coverage B in Joe's policy? A. The roof B. None C. Both the water softener and the roof D. The water softener
B. None
Which of these statements about Hurricane coverage in Florida is FALSE? A. The minimum deductible for this coverage is $500. B. Properties along the coast are required to buy this coverage through the Citizens Property Insurance Corporation. C. The deductible for this coverage is often higher than the deductible that applies to the rest of the policy. D. All Florida residential property insurance policies must include it.
B. Properties along the coast are required to buy this coverage through the Citizens Property Insurance Corporation.
Lightning strikes a tree in Pam's front yard, sending a limb crashing through her bay window. Pam hires a contractor to put up some plywood, temporarily sheltering the living room from the elements until she can get a few estimates and have the window replaced. Which coverage in her DP-3 could help with the cost of installing the plywood? A. Trees, shrubs, other plants B. Reasonable repairs C. Debris removal D. Improvements, alterations, and additions
B. Reasonable repairs
While traveling abroad, Christopher's belongings are stolen out of his hotel room. He is fortunate enough to have planned ahead for this by maintaining a DP-3 policy with which additional coverage? A. Theft: special form B. Theft: broad form C. Theft: limited form D. Theft: abroad form
B. Theft: broad form
A lightning strike sparks a fire on the grounds of Blake's property, causing damage to several trees and shrubs in the process. Assuming Blake carries a $120,000 DP-2 on his home with a trees, shrubs, and other plants endorsement, what is the maximum Blake can receive for his 15 damaged plants? A. $500 - Only one occurrence is paid B. $7,500 - All perils are covered and all damaged plants are covered at $500 per plant C. $6,000 - Lightning is a covered peril and damaged plants are covered at $500 per plant up to 5% of coverage A limit D. $0 - Lightning is not a covered peril with the trees and shrubs additional coverage
C. $6,000 - Lightning is a covered peril and damaged plants are covered at $500 per plant up to 5% of coverage A limit
If a Florida HO policy has only been in effect for 45 days, the insurer must notify the policyholder at least ____ days before cancelling it for non-payment of premiums, or at least ____ days before cancelling it for any other approved reason. A. 20; 100 B. 10; 45 C. 10; 20 D. 20; 30
C. 10; 20
Tom owns a home in Florida that has been insured with Diamond Insurance Co. for six months. Now he is thirty days late in paying his monthly premium, and Diamond Insurance Co. wants to cancel his policy. Which of the following is TRUE? A. Diamond Insurance may cancel Tom's policy, but must notify Tom about the cancellation at least 20 days in advance. B. Diamond Insurance cannot cancel coverage until they receive notification from Tom about his desire to cancel the policy. C. Diamond Insurance may cancel Tom's policy, but must notify Tom about the cancellation at least 10 days in advance. D. Diamond Insurance must wait an additional 60 days before cancelling Tom's policy.
C. Diamond Insurance may cancel Tom's policy, but must notify Tom about the cancellation at least 10 days in advance.
ABC Trucking owns a nice vacation house in the country, to which they regularly bring high-ticket clients as a benefit for staying loyal to them. They would like to purchase a policy to insure the property from things like fire, windstorm damage, or vandalism. What policy type should ABC Trucking purchase to cover the property? A. Standard fire policy B. Homeowner's policy C. Dwelling policy D. Commercial liability policy
C. Dwelling policy
Frank recently purchased some rural property that he would like to use as a hunting lodge. He won't be able to live there year-round, but will keep it furnished with the regular camping equipment. Frank needs to purchase insurance to protect his investment. Which type of policy would best fit Frank's needs? A. Commercial general liability B. Standard fire policy C. Dwelling policy D. Homeowners policy
C. Dwelling policy
Phil is moving to a new town, but he's having a new house built. He hires a home builder and purchases a DP-3 policy to cover the new home. Which endorsement will help insure his house, even before it is finished? A. Ordinance or law B. Reasonable repairs C. Dwelling under construction D. Debris removal
C. Dwelling under construction
Which of the following represent the four most common endorsements for dwelling policies? A. Debris removal, reasonable repairs, fire department service charge, and liability B. Liability, theft (limited or broad), debris removal, reasonable repairs C. Dwelling under construction, theft (limited or abroad), automatic increase, and liability coverage D. Liability coverage, theft (limited or broad), automatic increase, debris removal
C. Dwelling under construction, theft (limited or abroad), automatic increase, and liability coverage
Which statement is FALSE about coverage for trees, shrubs, and other plants in the DP-2 and DP-3? A. It is limited to $500 per tree or plant B. It cannot pay more than 5% of the coverage A limit of liability C. It includes the perils of windstorm and hail D. It pays in addition to the coverage A limit of liability
C. It includes the perils of windstorm and hail
A windstorm blows down trees all over town, sending one of Greg's neighbor's trees into Greg's yard. Luckily for Greg, the tree doesn't hit his house, cause any damage to his fence, or even block his driveway. It's merely an eyesore. Which coverage in Greg's DP-2 would pay to remove the tree from his yard? A. Trees, shrubs, other plants B. Reasonable repairs C. No coverage applies to this loss D. Debris removal
C. No coverage applies to this loss
Greg's neighbor Sam is trimming his trees in his back yard. In the process, a big limb from one of Sam's trees crashes down onto Greg's fence. Assuming Greg has as DP-1 policy with the extended coverage endorsement, which of the following could help indemnify Greg for the repairs to his fence? A. Trees, shrubs, other pants B. Reasonable repairs C. None D. Debris removal
C. None
In the Dp-2 and DP-3, what is the time-based limit for coverage D - fair rental value? A. 180 days, or the amount of time needed to repair or replace damaged property, whichever is shorter B. 60 days C. The shortest time required to make repairs or replacements needed to return the property to rentable condition D. The amount of time that it takes for the insured to start receiving rental income again after a loss
C. The shortest time required to make repairs or replacements needed to return the property to rentable condition
What does coverage B (appurtenant physical structures) provide?
Covers detached structures up to 10% of the coverage A limit
What does coverage A (dwelling) provide?
Covers main dwelling, attached structures, and service machinary
What does coverage C (personal property) provide?
Covers personal property at the described location
Jake's house is covered under a DP-2 policy with a $100,000 coverage A limit of liability. A fire destroys the dwelling and a $30,000 detached guest house. Assuming he has not endorsed or otherwise modified the coverage amounts of the policy, how much can Jake expect to receive from his insurer? A. $130,000 B. $100,000 C. Nothing - fire is not a covered peril under a DP-2 policy D. $110,000
D. $110,000
Jacob's home burns to the ground, despite the fire department's attempts to save it. His home was fully insured under his DP-3 policy for $150,000. How much can Jacob expect to receive from his insurer to cover the loss and any bills he may receive from the fire department? A. $120,000 B. $150,000 C. $100,000 D. $150,500
D. $150,500
Which of the following endorsements is mandatory for all Florida residential property policies? A. Sinkhole B. Sewer backup C. Earthquake D. Catastrophic ground cover collapse
D. Catastrophic ground cover collapse
James rents a home to Jill and maintains a DP-3 policy on the dwelling. One day, Jill accidently leaves the oven on all day while she is out, and James' house burns to the ground, along with all the contents. Which coverage in James' DP-3 might pay for the items he left in the home for Jill's use? A. Coverage B B. Coverage A C. Coverage D D. Coverage C
D. Coverage C
In Florida, what are the basic limits of liability for Coverage E and Coverage F in a homeowners policy? A. Coverage E: $50,000 per occurrence; Coverage F: $5,000 per person B. Coverage E: $300,000 per occurrence; Coverage F: $1,000 per person C. Coverage E: $100,000 per occurrence; Coverage F: $10,000 per person D. Coverage E: $100,000 per occurrence; Coverage F: $1,000 per person
D. Coverage E: $100,000 per occurrence; Coverage F: $1,000 per person
Grace purchased 40 acres of land a couple miles outside of town. To save time and money, she put up a basic mobile home and installed it permanently to the ground. Not planning on farming any of the land, Grace is now looking for a way to insure this second home and property. Which policy could best fit her needs? A. Farm and ranch policy B. Commercial policy C. Homeowner's policy D. Dwelling policy
D. Dwelling policy
An unendorsed DP-1 basic form covers what three perils? A. Windstorm, fire, lightning B. Fire, lightning, external explosion C. Vandalism, malicious mischief, windstorm D. Fire, lightning, internal explosion
D. Fire, lightning, internal explosion
Leonard has a dwelling insured under DP-1 with a limit of liability of $100,000 and no endorsements. An automobile swerves off the road and crashes through Leonard's dwelling. The cost to repair the damage to the wall is $10,000. However, when Leonard attempts to get the permits to do the repair, he finds out that current codes require that he perform a $1,000 upgrade to the plumbing in the wall. How much will the policy pay (ignore the deductible)? A. $1,000 B. $10,000 C. $11,000 D. Nothing. Damage from vehicles is not a covered peril under a DP-1 without an endorsement.
D. Nothing. Damage from vehicles is not a covered peril under a DP-1 without an endorsement.
Molly leaves town for a one week vacation. When she returns, she finds that the back door to her house has been kicked in and damaged. Her laptop is gone, and - to her surprise - she finds that the copper piping in the basement has been torn out and stolen as well! She has a DP-3 with coverage for contents but no additional endorsements. What, if anything, is covered? A. The copper piping only B. The damage to the door, the laptop, and the copper piping C. Nothing; all theft is excluded under the DP-3 D. The damage to the door and the copper piping
D. The damage to the door and the copper piping
An extended power failure in Tom's neighborhood causes his freezer to thaw, along with all the meat inside, resulting in an $800 loss. He files a claim with hid DP-3 insurer for the loss, which comes back denied. For what reason would the insurer deny the claim? A. There is no such thing as meat coverage in a dwelling policy B. Tom should have rented a generator to prevent the thawing C. Tom should have relocated the meat to another location D. The power outage occurred off-premises
D. The power outage occurred off-premises
Dan has a DP-3 policy on his home. During a storm, a tree falls onto his attached garage. The tree crashes through the garage roof and lands on Dan's water softener tank, destroying it completely. Which of these damages would be covered under coverage A? A. None B. The roof only C. The water softener only D. The roof AND the water softener
D. The roof AND the water softener
What does the DP-1 basic form cover?
Fire Lightening Explosion
What does the DP-2 broad form cover?
Fire Lightening Explosion Vandalism and malicious mischief Damage by burglars Glass breakage in occupied dwellings Falling objects that damage the exterior Weight of precipitation Sudden tearing apart, cracking, burning, bulging Accidental discharge Collapse Freezing
What does the DP-3 special form cover?
For structures: Open peril coverage For personal property: Fire, lightning, explosion, vandalism and malicious mischief, damage by burglars, falling objects that damage the exterior, weight of precipitation, sudden tearing apart / cracking / burning / bulging, accidental discharge, collapse, freezing
What does coverage E (additional living expenses) provide?
Pays added living expenses after a covered loss
What does coverage D (fair rental value) provide?
Pays lost rental income after a covered loss
What are the limits for coverage D and coverage E?
Shortest time required to repair or replace the property OR settle elsewhere
What is the acronym for extended coverages?
W.C. SHAVER
What are the extended coverages?
Windstorm Civil commotion Smoke Hail Aircraft Vehicles Volcanic eruptions External explosion Riot
