Dwelling Insurance
The insured has a DP-3 covering a home that has a replacement value of $100,000. The insured carries $60,000 of insurance. Following a loss, it is determined that it would cost $12,000 to replace the damaged portion of the home. How much could the insured collect, assuming the ACV of the loss is $6,000? A) $9,000 B) $6,000 C) Nothing D) $12,000
A) $9,000
Which of the following would be covered under Coverage E of the dwelling policy? A) Additional living expenses B) Liability C) Loss of rent D) Medical payments to others
A) Additional living expenses
Which Dwelling forms pay losses to dwellings and other structures on an actual cash value basis? A) DP-1 B) DP-2 and DP-3 C) DP-3 D) DP-2
A) DP-1
The DP-3 provides A) open peril coverage for the dwelling and broad coverage for personal property. B) basic coverage for the dwelling and broad coverage for personal property. C) open peril coverage for both the dwelling and personal property. D) broad coverage for the dwelling and basic coverage for personal property.
A) open peril coverage for the dwelling and broad coverage for personal property.
Giselle's home is covered by the DP-3 with the Personal Liability And Medical Payments To Others endorsement. When a visitor at Giselle's home is injured, Giselle calls an ambulance to provide immediate first aid and transport the visitor to the emergency room. In addition to $800 in medical expenses, the ambulance service bills Giselle $250. The insured's Medical Payments To Others limit is $1,000. How much would the insurer pay for this loss? A) $750 B) $1,050 C) $1,000 D) $800
B) $1,050
Which of the following dwelling forms includes coverage for glass breakage? A) Extended B) Broad and special C) Basic D) Basic and extended
B) Broad and special
Which of these items of personal property would be covered under a Dwelling policy? A) Sailboat B) Poodle C) Motorcycle D) Pool table
B) Poodle
Coverage for debris removal is provided in A) the DP-2 and DP-3. B) all of the dwelling forms. C) the DP-2 only. D) the DP-3 only.
B) all of the dwelling forms.
A Dwelling policy with no endorsements attached contains all of the following coverages EXCEPT A) fair rental value coverage. B) medical payments coverage. C) dwelling coverage. D) personal property coverage.
B) medical payments coverage.
In comparison to the Homeowners policy, the Dwelling policy provides A) the same amount of coverage. B) more limited coverage. C) broader coverage. D) broader liability coverage, but more limited property coverage.
B) more limited coverage.
In addition to the perils that are automatically covered in the DP-1, the insured may opt to have property covered against A) the Extended Coverage perils. B) the Extended Coverage perils and vandalism and malicious mischief. C) vandalism and malicious mischief. D) flood damage.
B) the Extended Coverage perils and vandalism and malicious mischief.
Which one of the following would NOT be covered under Coverage A or Coverage B of the Dwelling policy? A) A stack of lumber placed at the edge of the insured's property that will be used to construct a boat shed B) A storage shed 100 feet in back of the insured's dwelling where she keeps various yard tools C) A detached garage that has been altered to house a manufacturing operation D) A water softener and water heater located in the insured's attached garage
C) A detached garage that has been altered to house a manufacturing operation
Under which of the Dwelling forms may the insured be reimbursed for the replacement cost of a dwelling when it is destroyed? A) DP-1 only B) DP-3 only C) DP-2 and DP-3 D) All Dwelling forms
C) DP-2 and DP-3
Which of the following could be covered under a Dwelling policy? A) Mobile home that is not permanently located B) Five-unit apartment building C) Single family dwelling that is rented to tenants D) Two-story office building
C) Single family dwelling that is rented to tenants
Damage to covered property caused by glass breakage is A) excluded in all Dwelling forms. B) covered in the DP-1 and DP-2, but not the DP-3. C) covered in the DP-2 and DP-3, but not the DP-1. D) covered in all Dwelling forms.
C) covered in the DP-2 and DP-3, but not the DP-1.
Myrtle has a Dwelling policy with Broad Theft coverage for on and off her premises. Which of the following theft losses would be covered? A) A CD player removed from the dashboard of her car B) A $9,000 fur coat taken from the cleaners where she had stored it for the summer C) Two credit cards taken from her desk in her home D) A $400 handgun taken from a bureau in her home
D) A $400 handgun taken from a bureau in her home
Which of the following losses would be covered under the DP-1? A) While the insured is on vacation, a power failure that occurs away from the insured's home causes the electricity to go off in the insured's neighborhood for 10 hours. As a result, large amounts of food stored in a freezer are ruined. B) Following a fire, the insured suffers an additional loss because a city ordinance requires that he replace his frame dwelling with more expensive fire-resistant materials. C) When Languid Lake overflows, the first story of the insured's home is flooded, causing extensive damage. D) An earthquake causes a fire that destroys the insured's home.
D) An earthquake causes a fire that destroys the insured's home.
If eligible, why might a property owner purchase a homeowner's policy instead of a dwelling policy? A) Lower premium B) Coverage for a rental property C) Replacement cost coverage on the dwelling D) Broader coverage
D) Broader coverage
Which of the following statements regarding the dwelling policy is CORRECT? A) Personal liability is included on all dwelling policies. B) The dwelling policy is written for owner-occupied residential structures only. C) Incidental businesses are not allowed on the premises. D) Vacation homes are frequently covered by dwelling policies.
D) Vacation homes are frequently covered by dwelling policies.
The DP-1 automatically provides coverage for A) vandalism and malicious mischief. B) explosion. C) windstorm. D) fire.
D) fire.
