Dwelling Insurance
Minimum limit for Coverage M?
$1,000 per person. The insured does not have to be legally liable for coverage to apply. Coverage does not apply to any injury sustained by the insured or the insured's family members.
Jewelry, watches, furs, and precious stones (Special Limits of Theft Coverage)
$1,500
Securities, manuscripts, and the valuable paper property (Special Limits of Theft Coverage)
$1,500
Trailers not used with watercraft (Special Limits of Theft Coverage)
$1,500
Watercraft, including trailers and equipment (Special Limits of Theft Coverage)
$1,500
What is the policy minimum limit for Coverage L - - personal liability?
$100,000
Firearms (Special Limits of Theft Coverage)
$2,500
Silverware, goldware, or pewter ware (Special Limits of Theft Coverage)
$2,500
Money or related property, coins, and precious metals (Special Limits of Theft Coverage)
$200
How much will a policy pay for damage to any one tree, shrub, or plant under DP-2 & 3?
$500 and no more
Items NOT covered under Coverage C would include?
-Animals -Aircraft -motor vehicles, other than the ones used to maintain the property -Boats, other and rowboats and canoes -Accounts, bills, currency, evidence of debt, money, and securities
Property not covered under Theft Coverage Endorsements
-Animals, birds, and fish -Credit Cards and fund transfer cards -Property while it is in the mail -Aircraft and parts -Property held as a sample or for sale or delivery after sale -Property separately described and specifically insured by other insurance -Property of tenants -Business property -Property in the custody of others, EX laundromat, tailer, etc. -Motor vehicles
DP-1 Basic Form ONLY covered perils are???
-Fire - only covers damage from an unfriendly fire. Damage from a friendly fire (fireplace) is not covered. -Lightening - natural electricity -Internal explosion - includes the explosion of a furnace, stove, or hot water heather inside the dwelling
Excluded Perils under DP-3 Special Form
-Intentional damage -Theft -Freezing of plumbing (if unoccupied) -Wear and tear -Foundations
General Exclusions of ALL DP policies
-Losses from ordinances or laws -Earthquakes, mudslides, sinkholes, etc. -Water damage including flooding -Power interruption -War -Nuclear hazard -Seizure of property by the government or public authority
Coverage M applies to injures sustained while the injured party is?
-On the insured location with permission -Off the insured location if the injury arises out of a condition such as --on the insured location --caused by activities of the insured --caused by an animal in the insured's care
What are other coverages automatically included for no additional premium under DP-1 Basic Form?
-Other Structures -Debris removal -Property removed -Reasonable repairs -Improvements, alterations, and additions -Fire department service charge -Worldwide coverage -Rental value
Additional coverages under DP-2 & 3 that are not included in DP-1
-Trees, shrubs, and other plants -Collapse -Glass or safety glazing material -Ordinance or law -Property removed
What are some ELIGIBILITY of dwelling policies?
-Vacation Homes -Rental property -Dwellings with no more than 4 units (i.e boarders) -Dwellings under construction -Mobile homes that meet certain qualification, (i.e. they are permanently located
Exclusions for Coverage L & M
-War -Losses that are expected or intended by the insured -Business pursuits or the rendering of or failure to render professional services -Transmission of a communicable disease -Sexual molestation, corporal punishment, or physical/mental abuse -controlled substances except prescriptions -Rental of a premises not eligible for coverage
Broad Form DP-2 exceptions to BIG AFFECT
-Weight of ice or snow DOES NOT cover damage to awnings, fences, patios, pavement, swimming pools, foundations etc. -Falling objects DOES NOT include awnings, fences, outdoor equipment, etc. -Damage to interiors is COVERD ONLY if the falling object first damages the roof or exterior wall -Accidental discharge DOES NOT include continuous or repeated leakage, freezing, etc
Additional Exclusions that apply only to Coverage L include liability for?
-damage to property owned by an insured -damage to property rented -losses that would be covered under workers comp -loss assessments charged against the insured as a member of an association, corporation, or community of property owners -assumed under most contact or agreements -injury to the insured or relative to lives in the same house
Coverage M does not apply to bodily injury to?
-residence employees that occurs off the insured location and does not arise out of or in the course of work the employee performs for the insured -any nuclear hazard -any person other than a residence employee who regularly resided on any part of the insured location
Coverage L (personal liability) and Coverage M (medical payments to others) also includes three additional coverages?
1. Claim Expenses 2. First Aid to others 3. Damage to property of others
5 Coverages offered for dwelling policies
1. Coverage A-dwelling 2. Coverage B - Other structures (detached from the main dwelling) (APPURTENANT structures) 3. Coverage C - insured's personal property 4. Coverage D - fair rental value 5. Coverage E - additional living expenses
What are the 3 Dwelling Policies?
1. DP-1 (the Basic Form) 2. DP-2 (the Broad Form) 3. DP - 3 (the Special Form)
What % is available for personal property NOT on the premises of Coverage C - personal property?
10% may be used as a limit for loss for the amount purchased in the Coverage C policy for anywhere around the world
What % of Coverage D (fair rental value) offered?
20% is available for this coverage.
How many days is property removed from the premises covered in Dp2 & 3?
30 days
How many days is property removed covered for under DP-1?
5 days. For ex, the roof has a big hole in it because of a windstorm and the insured moves personal property away from the premises to a storage building for protection
How many days does the building need to be vacant for DP-2 to offer coverage for burglar damage?
60 consecutive days
How much coverage does an insured have to carry in order to get replacement costs covered under DP-2&3?
80% or more of the full replacement cost at the time of the loss. -An insured can never receive more than the policy limit
Coverage E
Additional living expenses is included in DP-2 and DP-3 and pays for additional living expenses the insured incurs after a covered loss, including reasonable motel, dining, laundry, and transportation expenses.
Other structures (additional coverage under DP-1 basic form)
Allows use of up to 10% of the Coverage A limit of liability for covered losses to other structures as described in Coverage B
BAILD ?
Bonds Aid Interest Loss Earnings Expenses Defense Costs
What is BIG AFFECT that is covered under DP-2 Broad Form?
Burglary damage Ice, Sleet and snow Glass breakage Accidental discharge of water Freezing objects (plumbing, heating, air conditions, sprinklers etc. Falling objects (Trees, light post, etc.) Electrical Current Collapse Tearing asunder
What is not excluded by Coverage L
Court Costs charged against an insured in any suit the insurer defends
DP-2 Broad Form automatically covers DP-1 plus?
DP1- Fire, lightening, internal explosion plus... BIG AFFECT
Coverage A
Dwelling - covers the dwelling, structures attached to the dwelling (ex. garage or carport), and materials and supplies for use in the construction or repair of the dwelling
Coverage D
Fair rental value covers the insured in the event a covered loss makes the rental portion of a priority unfit for use.
What is an example of reasonable repairs?
If there is a big hole in the roof, reasonable repairs would cover it
Can Coverage E (additional living expense) be covered under DP-1?
It can be added by endorsement
Why is DP-3 Special Form different than DP-1&2?
It should be read differently than the other two. Instead of the document listing what is covered, risks of direct phyla loss are covered except for the exclusions specifically named in the policy. Risks of direct physical loss are covered perils
What is another name for dwelling policies?
Monoline policies because they insure only property
Are farm dwellings eligible for coverage ?
NO
Loss resulting from the freezing of plumbing?
NOT excluded in all dwelling polices because it is under DP-2 Broad form
Is theft coverage automatically included in a dwelling policy?
No, but it may be added with a broad theft coverage endorsement or a limited coverage endorsement. -Both endorsements provide coverage for theft, attempted theft, vandalism or malicious mischief as a result of theft.
Is collapse that is a result from hidden decay or insect/vermin covered?
No, if the insured knew about the damage before the collapse
Do all dwelling policies have all 4 coverages automatically?
No, insured can pick and choose which they would want on a policy. The insurer should give recommendations
If the property is a rental property, will a tenant's property be covered?
No, only the insured's property. The renters need to get their own renters insurance
Coverage B
Other (detached) structures - insures buildings on the premises that are separated from the dwelling by a clear space or connected only by a fence, utility line. The building cannot be used for commercial, manufacturing, or farming purposes
Coverage C
Personal property covers the insured's personal property that is at the described location and is usual to the dwelling occupancy. Personal property belonging to the insured's guests or servants may be covered at the insured's request.
If the insured wishes to have personal liability and medical payments to others covered in the Dwelling policy what do they need to do?
Purchase additional coverage as an endorsement to the dwelling policy or as a separate policy.
If the insures causes damage to the property of others, the policy will provide?
Replacement costs coverage of up to $1,000 for each occurrence or loss
Dwelling insurance is only for?
Residents and not commercial
What gives the insure the right to repair or replace the damaged property with material or property of like kind within 30 days of the insured's statement of loss?
The our option condition
DP-2 Broad Form covered perils
This form covers more than DP-1 basic coverage and includes several additional perils that DP-1 does not -They both only cover named perils
If a civil authority prohibits use of the insured property because of a covered peril damaged at a neighboring location, how many weeks are payments limited too?
Two weeks
What is a renter pays for a new carpet in a rental house and the owner has DP-1 basic form?
Up to 10% of the Coverage C (personal property) limit is available
Extended Coverage (EC) perils are not automatically included in a dwelling policy. They can be added for an additional premium. What are these?
Wind Civil commotion Smoke Hail Aircraft Vehicles Volcanic Eruption Explosion Riot
Do DP-2 (broad form) and DP-3 (special form) provide the same additional automatic coverage as DP-1 (basic form)?
Yes, plus some other coverages that are not found in DP-1 (basic form). These coverages are a part of DP-2 & 3 and not additional premium is required
DP-2&3 settle losses to personal property how?
actual cash value
Mobile Home (Other Endorsements)
allows home and personal property to be insured -this endorsement requires the mobile home to be on a permanent foundation
Ordinace or law (additional coverage under DP-2 & 3)
coverage allows payment of up to 10% of the Coverage A limit of liability for the increased cost to repair or rebuild a dwelling or other structure to conform to applicable building and land use codes
Property removed (additional coverage under DP-1 basic form)
covers loss to property that occurs while the preppy is being removed to protect it from a covered peril.
The OUR OPTION Condition (Dwelling Policies Conditions concerning how losses will be paid)
gives the insurer the right to repair or replace damaged property with material or property of like kind and quality within 30 days of receiving the insured's statement of loss
The RECOVERED PROPERTY Condition (Dwelling Policies Conditions concerning how losses will be paid)
if the insured or insurer recovers property on which the insurer has made loss payment, the other party must be notified. The insured may have the property returned, in which case the loss payment will be adjusted, or allow the company to have it.
Limited Theft Coverage Endorsement
is available for dwellings that are not owner occupied.
Broad Theft Endorsement
is only available to owner-occupied dwellings and can apply to on and off-premise theft.
Does dwelling policy cover theft?
it requires an endorsement to cover theft
What is a dwelling policy?
it usually is used to cover properties where the insured does not permanently reside, like a lake cabin, a rental duplex, etc. -It usually covers risks not offered by homeowners insurance
How does DP-2 & 3 pay losses to insureds?
on a replacement cost basis, with no deduction for depreciation.
How does DP-1 pay losses to insureds?
on an actual cash value basis (replacement cost minus depreciation)
Glass or safety glazing material (additional coverage under DP-2 & 3)
pays for the breakage of glass or safety glazing material and damage to covered property caused by glass breakage
Collapse (additional coverage under DP-2 & 3)
pays for the collapse of the dwelling caused by a specified list of perils.
Debris Removal (additional coverage under DP-1 basic form)
pays for the expense of removing debris as a result of a loss that is covered by the policy
Reasonable Repairs (additional coverage under DP-1 basic form)
pays for the reasonable costs to make necessary repairs to protect property from further damage following a covered loss.
Fire Department service charge (additional coverage under DP-1 basic form)
pays up to $500 for fire department charges incurred when the fire department is called -NO DEDUCTIBLE APPLIES TO THIS COVERAGE
Trees, Shrubs, and Other Plants (additional coverage under DP-2 & 3)
pays up to 5% of the Coverage A limit for damage to trees, shrubs, plants, or lawns caused by a specified list of perils.
Improvements, alterations, and additions (additional coverage under DP-1 basic form)
provide coverage for insureds who are tenants form improvements or alterations made to the dwelling at the tenant's expense.
Worldwide coverage (additional coverage under DP-1 basic form)
provides 10% of the Coverage C limit for covered personal property while it is located anywhere in the world. EX: a suitcase with clothing suffers a loss while the insured is on vacation in another country
Automatic increases in Insurance (Other Endorsements)
provides an annual increase in the Coverage A and B amount of 4,6,& 8 %
Coverage L - Personal Liability Definition
provides coverage for damages that the insured become legally obligated to pay because of an occurrence to which the coverage applies that causes bodily injury (BI) or property damage (PD). -At Fault -On and off premises
DP-3 Special Form definition
provides open peril coverage on the dwelling and other structures, insuring against risks of direct phyla loss that not not specifically excluded in the policy. Personal property is coved on a named broad peril basis
Rental value (additional coverage under DP-1 basic form)
provides up to 20% of the Coverage A (dwelling) limit of liability for loss of fair rental value. With the basic policy, any amount that is paid out will reduce the limit of liability for Coverage A (dwelling) as well.
Losses to the dwelling and other structures Coverages are paid on a?
replacement cost basis as long as the insured has at least 80% coverage at the time of the loss
The Loss Settlement Condition (Dwelling Policies Conditions concerning how losses will be paid)
states that covered property losses are valued at actual cash value but are not to exceed the amount necessary to repair or replace.
The DEDUCTIBLE Clause (Dwelling Policies Conditions concerning how losses will be paid)
states that only the amount of loss over the deductible will be paid, up to the limit of liability
The LOSS PAYMENT Condition (Dwelling Policies Conditions concerning how losses will be paid)
states that the loss will be paid within 60 days after reaching an agreement with the insured
The OTHER INSURANCE Condition (Dwelling Policies Conditions concerning how losses will be paid)
states that, if a loss is also covered by other insurance, the insurance company will pay only its proportion of the loss
The PAIR OR SET Condition (Dwelling Policies Conditions concerning how losses will be paid)
states that, in the case of a loss to an item that is part of a ________, the insurance company is not obligated to pay the value of the entire ____. The company may either repair or replace ______ or pay the difference between the actual cash value of the property before and after the loss.
Coverage M - Medical Payments to Others Definition
the insurer will pay all necessary medical expenses incurred within three years of an accident that causes bodily injury (BI).
What is considered a collapse under DP-2 & 3?
the loss must involve the building or part of the building abruptly falling down or caving in, after which the building or part of the building cannot be occupied.
Dwelling under construction - attached to provide coverage (Other Endorsements)
when the intended occupant of a dwelling under construction is the named insured -the limit of the liability apply at any given time is a percentage of the policy limit based on the value of the partially completed home.
