Dwelling insurance

Which of the following is NOT a general exclusion of all the Dwelling policy forms?

"Lightning" is covered, it is NOT an exclusion.

The insured has suffered a severe storm and some of his trees, shrubs, and plants are heavily damaged by the wind. How much coverage could the insured expect to receive for his claim under his DP-3 Dwelling policy?

$0- The Dwelling policy provides an additional coverage for trees, shrubs, and plants. However, the coverage applies for specified perils and "wind" is a peril that is NOT covered for the loss to trees, shrubs, and plants. The insured will not collect anything for this loss.

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)?

$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.

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?

$12,000.00- 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.

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?

$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?

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.

Jason has his home covered by a Dwelling policy with Coverage C included. When he transports covered property temporarily off the premises, it is destroyed by fire. How much coverage does Jason have to cover his destroyed property?

10% of the Coverage C amount

Which of the following is NOT excluded under Coverage C of a Dwelling policy?

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?

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

Which of the following is an "other coverage" provided on a DP-1 form?

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".

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?

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:

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