Chapter 4. DWELLING POLICY
Coverage B Limit of Insurance
- 10% of Coverage A limit - DP-2 and DP-3 provide additional insurance
Coverage D Limit of Insurance
- 20% of Coverage A limit - DP-2 and DP-3 provide additional insurance
Coverage E Limit of Insurance
- 20% of Coverage A limit - not included in DP-1 - DP-2 and DP-3 provide additional insurance
Intentional Loss Exclusion
- any insured committing intentional loss - even those who did not commit or conspire to commit the act
Other Coverage: Glass or Safety Glazing Material
- covers breakage of glass that is part of a covered building - direct loss caused by earth movement
Other Coverage: Collapse
- covers direct physical loss to covered property - collapse of a building or any part of a building
Other Coverage: Property Removed
- covers property against direct loss by any peril while being removed - property is endangered by insured peril
Other Coverage: Reasonable Repairs
- covers reasonable costs incurred by insured - protecting covered property from further damage
Other Coverage: Improvements, Alterations, and Additions
- covers up to 10% of coverage c limit - improvements made or acquired at insureds expense
Other Coverage: World-Wide Coverage
- covers up to 10% of coverage c limit - insured property located anywhere in the world
Other Coverage: Trees, Shrubs, and Other Plants
- covers up to 5% of coverage a limit - maximum of $500 for any one tree, shrub, or plant
DP-2 Broad Form COVERS:
- damage by burglars - falling objects - weight of ice, snow, or sleet - accidental discharge or overflow of water or steam - accidental tearing apart, cracking, burning or bulging - freezing - damage from artificially generated electric current
Coverage A - Dwelling
- described in declarations - used for residential purposes - structures attached to dwelling
Dwelling Program Eligibility
- dwellings must be used for residential purposes - no more than 4 dwelling units or 5 roomers/boarders - mobile homes if they are permanently affixed to a foundation, but only on basic form - incidental business occupancies, if primary use is a personal residence - dwellings cannot be located on farms
Water Damage Exclusion
- flood - surface water waves - tidal water - overflow of a body of water - water or waterborne material, that backs up through sewers or drains, overflows from a sump or sump pump, is below the surface of the ground
Coverage B EXCLUDES:
- land - rented to others who were not prior tenant of dwelling - used for commercial, manufacturing, or farming purposes
Nuclear Hazard Exclusion
- nuclear reaction - radiation - radioactive contamination
Coverage B - Other Structures
- on described location - separated or detached from dwelling
Other Coverage: Debris Removal
- pays insureds reasonable expenses for removal - property damaged by an insured peril
Dwelling Policy used to insure
- personally owned residential dwelling - not eligible for coverage under homeowners policy - occupied by a tenant
Personal Liability Supplement Endorsement
- provides coverage for personal liability and medical payments to others - can be applied to any dwelling forms
Broad Theft Coverage Endorsement
- provides coverage for theft, attempted theft, and resulted damage of vmm - both on and off-premises coverage is available - can be applied to any dwelling forms
Limited Theft Coverage Endorsement
- provides coverage for theft, attempted theft, and resulted damage of vmm - only on-premises coverage is available - can be applied to any dwelling forms
Dwelling Under Construction Endorsement
- provides insured an average amount of insurance for Coverage A during course of construction
Q/A: What Other Coverages are NOT included in the DP-1 form?
- trees, shrubs, and other plants - collapse - glass or safety glazing material - ordinance or law
Automatic Increase in Insurance Endorsement
- used to provide, at the annual renewal date of the policy - automatic increase in Coverage A and B limits of insurance helps to offset inflation
War Exclusion
- warlike act by a mititary force - discharge of nuclear weapon or their consequences
Non-concurrent Exclusions
- weather decisions - acts or decisions, including failure to act or decide - faulty, inadequate, or defective planning - materials used in repair, and maintenance
DP-1 Extended Coverage (EC) COVERS:
- wind or hail - explosion - riot or civil commotion - aircraft and vehichles - smoke - volcanic eruption - vandalism or malicious mischief (VMM)
General Exclusions
1. Ordinance or Law 2. Earth Movement 3. Water Damage 4. Power Failure 5. Neglect 6. War 7. Nuclear Hazard 8. Intentional Loss 9. Governmental Action
The 5 Common Endorsements:
1. automatic increase in insurance 2. broad theft 3. limited theft 4. dwelling under construction 5. personal liability supplement
10 Other Additional Coverages
1. debris removal 2. improvements, alterations, and additions 3. world-wide 4. reasonable repairs 5. property removed 6. trees, shrubs, and other plants 7. fire department service charge 8. collapse 9. glass or safety glazing material 10. ordinance or law
DP-3 Special Form COVERS:
A & B = open perils basis, except specific exclusions C = perils listed in broad form
DP-2 LOSSES:
A & B = replacement cost C = actual cash value
DP-3 LOSSES:
A & B = replacement cost C = actual cash value
DP-1 LOSSES:
A, B, & C = actual cash value
Dwelling Coverages
Coverage A - Dwelling Coverage B - Other Structures Coverage C - Personal Property Coverage D - Fair Rental Value Coverage E - Additional Living Expenses
Dwelling Coverage Forms
DP-1 Basic Form DP-2 Broad Form DP-3 Special Form
Retention Question 13: All of the following statements are TRUE about the Broad Theft Coverage endorsement, except: a. It does not apply to the DP-1 b. Both on- and off-premises coverage is available c. Theft and attempted theft are covered d. Resulting damage caused by malicious mischief and vandalism is covered
a
Retention Question 3: Which of the following dwelling forms pays for losses to the dwelling on an actual cash value basis? a. DP-1 Basic Form b. DP-2 Broad Form c. DP-3 Special Form d. DP-4 Liability Formling Program?
a
Retention Question 4: An attached carport is covered under which of the following coverages? a. Coverage A - Dwelling b. Coverage B - Other Structures c. Coverage C - Personal Property d. Coverage D - Fair Rental Value
a
Retention Question 8: The limit of insurance for the Other Coverage Trees, Shrubs, and Other Plants is provided at which percentage of the Coverage A limit? a. 5% b. 10% c. 50% d. 100%
a
Q/A: What is an "assisting" department?
a department outside the jurisdiction of the properties described location
Coverage A Limit of Insurance
appears on declaration as specific limit of liability
Coverage C - Personal Property
applies to household and personal property - owned by the insured or by members of insureds family who reside with insured - of guests or servants while on described loaction
Coverage D - Fair Rental Value
applies to indirect losses that occur as a result of direct losses to property insured under Coverages A, B, or C that are covered by policy
Coverage E - Additional Living Expenses
applies to indirect losses that occur as a result of direct losses to property insured under Coverages A, B, or C that are covered by the policy - automatically included in DP-2 and DP-3
Retention Question 10: Which of the following does not apply to the Other Coverage Glass or Safety Glazing Material? a. Covers glass that is part of a covered structure b. Applies to all dwelling forms c. No coverage applies if a dwelling is vacant for 60 consecutive days before the loss d. May be settled on a replacement cost basis
b
Retention Question 11: The Earth Movement exclusion contains all of the following perils, except: a. Mudflow b. Explosion c. Landslide d. Earthquake
b
Retention Question 15: The Automatic Increase in Insurance endorsement typically increases Coverages A and B by which of the following? a. A flat amount b. A percentage designated on the endorsement c. $10,000 d. $25,000
b
Retention Question 5: All of the following are covered under Coverage B - Other Structures, except: a. Swimming pool b. Construction materials c. Shed d. Storage building
b
Retention Question 7: All of the following are types of property NOT covered under Coverage C - Personal Property, except: a. A dog b. Canoe c. Motor vehicles d. Credit cards or fund transfer cards
b
Retention Question 12: What type of power failure is excluded under all of the dwelling forms? a. Power failure that occurs on the insured premises b. Power failure that causes a fire to a neighboring property c. Power failure that occurs off the insured premises d. Power failure that causes a fire on the described location
c
Retention Question 2: Which of the following dwelling program forms covers the building on an open peril basis? a. DP-1 Basic Form b. DP-2 Broad Form c. DP-3 Special Form d. DP-4 Liability Form
c
Retention Question 6: Which coverage pays for the loss of rents due to direct loss to the dwelling from a covered peril? a. Coverage B - Other Structures b. Coverage C - Personal Property c. Coverage D - Fair Rental Value d. Coverage E - Additional Living Expense
c
Q/A: Which coverages automatically provide the limit of insurance?
coverage b and d
Other Coverage: Ordinance or Law
covers increased costs incurred by insured, due to enforcement of ordinance or law because of a covered loss
Other Coverage: Fire Department Service Charge
covers up to $500 for charges incurred when an assisting department is called to protect covered property from insured peril
Retention Question 14: The Personal Liability endorsement includes each of the following additional coverages, except: a. First aid expenses b. Damage to the property of others c. Claims expenses d. Debris removal
d
Retention Question 1: Which of the following is not eligible under the Dwelling Program? a. Dwelling has 5 roomers b. Dwelling has 4 apartment units c. Dwelling includes a piano school d. Dwelling is located on farm property
d
Retention Question 9: Which of the following is NOT true about coverage for Property Removed? a. Property is covered while being removed from the premises to avoid a covered loss b. Coverage applies under the DP-3 form for 30 days while the property is removed c. Coverage does not increase the limit of insurance that applies to the property removed d. Property coverage applies under the DP-1 policy for 30 days while the property is removed
d
Earth Movement Exclusion
earth movement whether it is caused by human, animal, or natural forces
Power Failure Exclusion
failure of power or other utility service, taking place off described location
DP-1 Basic Form COVERS:
fire, lightning, internal explosion
Ordinance of Law Exclusion
increased costs due to enforcement of any ordinance or law
Coverage C Limit of Insurance
insureds choice, up to 10%
Coverage A EXCLUDES:
land, including land dwelling is located on
Q/A: What is true about the Coverage B Limit of Insurance?
limit does not increase amount of insurance under DP-1 limit is additional insurance under DP-2 and DP-3
Neglect Exclusion
neglect to use reasonable means to save and preserve property at and after time of loss
personally owned residential dwellings can also be
owner occupied or on a seasonal or secondary basis
Coverage C EXCLUDES:
personal property of a tenant or boarder
Selected Endorsements
require the payment of additional premium
Coverage D EXCLUDES:
the cancellation of a lease
If EC and VMM Coverages are purchased
they must appear on the declarations
