Insurance Test (Dwelling policies)

Collapse

"Collapse" is defined as the abrupt falling down or caving in of a building, or any portion of a building, but only if it cannot be occupied for its current intended purpose. If a building, or any portion of a building, is in danger of falling down or caving in — or if it's standing, it is NOT in a state of collapse. Under the DP-2 and DP-3 forms, coverage is provided for direct physical loss to covered property involving collapse of a building, or any part of a building, but only if the cause of loss is: any of the Coverage C named perils; hidden decay; hidden insect or vermin damage; weight of contents, equipment, animals or people; weight of rain which collects on the roof; and use of defective materials or methods in construction, remodeling or renovation if the collapse occurs during the course of the construction, remodeling, or renovation. Collapse does not include settling, cracking, shrinking, bulging, or expansion. This coverage does not increase the limit of insurance and is NOT provided by the DP-1. DP-2 AND DP-3 ONLY

eligibility

-Residential use -1 to 4 family dwellings -up to 5 roomers or boarders -allows some INCIDENTAL BUSINESS USE of the premises, such as school, studio, or office occupancy -Mobile homes may be insured on the basic form -Farm and Farm building are NOT ELIGIBLE

Which of the following does not apply to the Other Coverage Glass or Safety Glazing Material? A. Applies to all Dwelling forms B. May be settled on a replacement cost basis C. No coverage applies if a dwelling is vacant for 60 consecutive days before the loss D. Covers glass that is part of a covered structure

A. Applies to all Dwelling Forms Coverage is provided under only the DP-2 and DP-3 forms

Choose the true statement about the Basic Dwelling Form. A. The Basic Form covers internal explosion B. The Basic Form covers contents on an open perils basis C. The Basic Form covers loss to trees, shrubs and plants D. The Basic Form automatically covers contents for theft

A. Basic form covers internal explosion

Which is true regarding dwelling policies? A. Coverage C applies while insured property is located at the described location B. Coverage C includes coverage for personal property of tenants and boarders C. Coverage D is considered a direct loss coverage D. Coverage B would cover an attached garage

A. Coverage C applies while insured property is located at the described description

Which of the following claims would be covered under the DP-3? A. Damage by vandalism to a dwelling vacant for 30 days before the loss B. Damage to a fence due to freezing and thawing of ice due to a winter storm C. Wind damage to TV antennas D. Theft to a dwelling under construction

A. Damage by vandalism to a dwelling vacant for 30m days before the loss Loss from vandalism and malicious mischief is excluded if the dwelling has been vacant for more than 60 consecutive days immediately before a loss. A dwelling vacant for only 30 days would still be covered.

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. Resulting damage caused by malicious mischief and vandalism is covered D. Theft and attempted theft are covered

A. It does not apply to the DP-1 The theft coverage endorsement can be added to any form, including the basic DP-1

Which of the following is true regarding the Personal Liability Supplement? A. It provides coverage for claim expenses, first aid expenses and damage to property of others B. It covers Professional Services rendered by the insured C. It covers the insured's personal autos D. The Limit of Liability is the same as the Coverage A amount

A. It provides coverage for claim expenses, first aid expenses, and damage to property of others The Claim Expenses, First Aid Expenses, and Damage to Property of Others are Additional Coverages that supplement Coverage L, Personal Liability, and Coverage M, Medical Payments.

Which of the following property is not covered under Coverage A of a Dwelling Policy? A. The land on which the dwelling is located B. Materials for repairing the dwelling, located on the described location C. Outdoor equipment on the location used to service the dwelling D. Fire or lightning damage to outdoor television antennas

A. The land on which the dwelling is located

Automatic Increase in Insurance Endorsement (DP 04 11)

An automatic pro rata increase in the Coverage A and B limits of insurance is applied by the percentage shown on the endorsement. This endorsement is used to help offset inflation and may also be referred to as the Inflation Guard Endorsement. The increases are calculated per day, and will increase the dwelling coverage, as well as the premium, annually when the policy renews. If a loss occurs throughout the year, coverage is based on a pro-rated basis.

Nuclear Hazard

Any nuclear reaction, radiation, or radioactive contamination — whether controlled or uncontrolled, except that fire resulting from the nuclear hazard is covered.

The Automatic Increase in Insurance endorsement typically increases Coverages A and B by which of the following? A. Flat amount B. A percentage designated on the endorsement C. $10,000 D. $23,500

B. A percentage designated on the endorsement The increase is applied by the percentage shown on the endorsement annually

Which of the following coverages is NOT INCLUDED in the Basic Dwelling Form? A. Property moved to a Newly Acquired Residence B. Additional Living Expenses C. Fair Rental Value D. Personal Property Coverage on a World-Wide basis

B. Additional Living Expenses The Basic Dwelling Form (DP-1) does not provide coverage for Additional Living Expenses unless added by endorsement

Which of the following would not be covered under Coverage B? A. Swimming pool B. Grain silo C. Shed D. Pole barn

B. Grain Silo

Broad Theft Coverage Endorsement (DP 04 72)

Because none of the dwelling forms include theft coverage, one of two endorsements must be used if the named insured wishes to have coverage for the peril of theft. The Broad Theft Coverage endorsement may be added to any of the dwelling forms IF the described location is owner occupied. If the dwelling is tenant occupied, the Limited Theft Coverage endorsement must be used.

How much will the Dwelling Policy pay for living expenses after a dwelling insured for $100,000 Coverage A is damaged by a fire? A. $30,000 B. $10,000 C. $20,000 D. $50,000

C. $20,000 The coverage E limit of insurance is 20% of the Coverage A Limit $100,000 x .20 = $20,000

Coverage B of a dwelling policy will not apply to a detached garage if which of the following is being stored? A. Ski equipment owned by the insured's 18 year old son B. A broken down farm tractor belonging to the tenant C. A helium tank used for the insured's business D. A tenant's lawnmower with a full tank of gas

C. A helium tank used for the insured's business No coverage is provided for other structures used in whole or in part for commercial, manufacturing, or farming purposes unless the property is only being stored and is owned by the insured or tenant and does not contain gaseous or liquid fuel located other than a fuel tank. The helium tank is not allowed for coverage to apply.

An insured looking to cover the dwelling against damage from hail would need to purchase which dwelling form? A. DP-3 B. DP-1 C. Any form except for the unendorsed DP-1 D. DP-2

C. Any form except for the unendorsed DP-1 Hail is a covered peril under the DP-3, the DP-2, and the DP-1 if purchased with the Extended Coverage endorsement.

An insured looking to cover the dwelling against an intentional loss would need to purchase which dwelling form? A. DP-2 B. DP-1 C. No Dwelling form offers this coverage D. DP-3

C. No Dwelling form offers this coverage Intentional acts are excluded under all 3 DP forms

Which of the following is NOT true about coverage for Property Removed? A. Coverage does not increase the limit of insurance that applies to the property removed B. Property is covered while being removed from the premises to avoid a covered loss C. Property coverage applies under the DP-1 policy for 30 days while the property is removed D. Coverage applies under the DP-3 form for 30 days while the property is removed

C. Property coverage applies under the DP-1 policy for 30 days while the property is removed The DP-1 policy only provides 5 days of coverage while the property is removed from the dwelling to avoid a covered loss

Which of the following is TRUE of the Dwelling Under Construction Endorsement of a Dwelling Policy? A. The premium is a percentage of the Coverage A limit B. The insured has up to 90 days to notify the company that the dwelling is occupied C. The liability limit is a percentage of the finished building's value D. The insurer does not need to be notified of building completion

C. The liability limit is a percentage of the finished buildings value The limit of insurance at any given time prior to completion is a percentage of the Coverage A limit that equals the proportion the actual value bears to the value on the date of completion. The insurer must be notified of completion so coverage may be adjusted.

Under a dwelling policy, an insured tenant may use up to what percentage of the Coverage C limit of insurance for a covered loss to improvements, alterations, and additions made at the insured's expense to that part of the described location occupied by the named insured? A. 0% B. 5% C. 20% D. 10%

D. 10% An insured tenant may use up to 10% of the Coverage C limit for a covered loss to improvements, alterations, and additions made at the insured's expense to that part of the described location occupied by the named insured.

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 causes a fire on the described location D. Power failure that occurs off the insured premises

D. Power failure that occurs off the insured premises

Which of the following is true regarding Coverage A under the Dwelling Policy? A. Outdoor equipment is not covered B. Coverage A includes a detached carport C. Coverage for land is restricted to the land upon which the dwelling is sitting D. The policy does not include coverage for wind loss of television antennas

D. The policy does not include coverage for wind loss of television antennas

Under the Basic Dwelling Form, when is damage caused by vandalism included as covered peril? A. This coverage is not available in the Basic Dwelling Policy B. When under the unendorsed DP-1 C. When the Extended Coverage perils are added to the DP-1 D. When the V&MM endorsement is added to the DP-1

D. When the V&MM endorsement is added to the DP-1 The DP-1 provides coverage against three perils: fire, lightning, and internal explosion. The Vandalism and Malicious Mischief endorsement adds coverage for damage caused by vandalism.

General Exclusions The dwelling forms do not insure for loss caused directly or indirectly by any of the following -- regardless of any other cause or event that contributes concurrently or in any sequence to the loss:

Dwelling Forms DO NOT COVER loss caused by: -Ordinance or Law -Earth Movement -Water Damage -Power Damage -Neglect -War -Nuclear Hazard -Intentional Loss -Non-concurrent Exclusions

Coverage D

Fair Rental Value Coverage D provides insurance for 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. The policy pays the fair rental value of that part of the described location that is rented to others, or held for rental to others, at the time of a loss IF the rental unit is unfit for its normal use because of a direct loss covered by the policy. Payment will be made for the shortest time necessary to repair the damaged portion of the dwelling that's normally held for rental. A deduction is made for any continuing expenses — meaning expenses that would continue without regard to whether the unit can be occupied (e.g., electric bills or the mortgage payment).

Property Removed

If property is being removed from the described location to protect it because it is endangered by a covered peril, coverage is provided for direct loss by any peril while removed. Under the DP-1 form, coverage is provided for 5 days while removed; under the DP-2 and DP-3 forms, coverage is provided for 30 days while removed. This coverage does not increase the limit of insurance that applies to the property being removed.

Improvements, Alterations, and Additions

If the insured is a tenant, he or she may use up to 10% of the Coverage C limit of insurance for a covered loss to improvements, alterations, and additions made or acquired at the insured's expense to that part of the described location only occupied by the named insured. In the DP-1 form, coverage is included in the limit of insurance; in the DP-2 and DP-3 forms, it's additional insurance

Intentional Loss

Loss arising out of any act committed by or at the direction of the named insured or any additional insured, with the intent to cause a loss. Coverage is excluded for any insured committing the intentional loss, even those who did not commit or conspire to commit the act that causes the loss.

Coverage B

Other Structures Coverage B applies to other structures on the described location if they are separated or detached from the dwelling by clear space, a fence, or a utility line. Examples include a detached garage, shed, pool, and an outdoor storage building.

Personal Liability Supplement

Personal liability coverage applies to claims made or suits brought against an insured for damages because of bodily injury or property damage caused by an occurrence to which the policy applies. Payment will be made up to the limit of liability appearing on the declarations for which an insured is legally liable. Coverage is also provided for defense in addition to the limits of liability.

Limited Theft Coverage

Provides insurance for the perils of theft, attempted theft, and vandalism or malicious mischief that results from theft or attempted theft. • No VMM coverage applies if the dwelling was vacant for more than 60 consecutive days immediately before the loss. • On-premises coverage applies when covered property is owned or used by the named insured or a residence employee and is at the described location.

Dwelling Under Construction

Provides property coverage for a dwelling that is being built and is not occupied

Non-Concurrent Exclusions

The following exclusions apply, however, if an ensuing loss is otherwise covered by the policy, it will not be excluded: weather decisions; acts or decisions, including the failure to act or decide, of any person, group, organization, or governmental body; faulty, inadequate, or defective planning, zoning, development, surveying, sighting, design, workmanship, repair, construction, renovation, remodeling, grading, compaction, materials used in repair, and maintenance.

Worldwide Coverage

The insured may use up to 10% of the Coverage C limit of liability for a covered loss to property insured under Coverage C while it's located anywhere in the world. This coverage does NOT apply to rowboats, canoes, or property owned by guests or servants. It is included in the Coverage C limit of liability.

DP-1 (Basic Form) Dwelling Coverage Forms

The perils insured against are fire, lightning, and internal explosion. If an additional premium is paid for Extended Coverage (EC), the following perils are also included: -Wind storm or hail -Explosion -Riot or civil commotion -Aircraft, vehicles -Smoke -Volcanic eruption The peril of vandalism or malicious mischief (VMM) may also be included with the payment of an additional premium. EC and VMM coverages, if purchased, must appear on the declarations. If VMM is purchased, it excludes loss for vandalism in vacant buildings. Losses to the dwelling, other structures, and contents are paid ON AN ACTUAL CASH VALUE BASIS

Fire Department Service Charge

Under each of the dwelling forms, the policy will pay up to $500 for the named insured's liability assumed by contract or agreement for fire department charges incurred when the fire department is called to save or protect covered property from an insured peril. Coverage does not apply if the property is located within the limits of the city, municipality, or protection district furnishing the fire department response. Essentially, coverage is provided for services provided by an assisting fire department. This is additional insurance and the policy deductible does not apply.

Neglect

the insured's neglect to use all reasonable means to save and preserve property at and after the time of a loss

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. 100% C. 10% D. 50%

A. 5% This coverage is also addition to the Coverage A Limit

Which of the following dwelling forms pays for losses to the dwelling on an actual cash value basis? A. DP-1 B. DP-3 C. DP-2 D. DP-4

A. DP-1

DP-1 (Basic Form)

Covered perils covered are: -Fire and Lightning -Internal Explosion Extended Coverage (EC) perils: -windstorm or hail -explosion -riot or civil commotion -aircraft and vehicles -smoke -volcanic eruption -EXCLUDES VANDALISM & MALICIOUS MISCHEIF (VMM) PAYS FOR LOSSES TO THE DWELLING ON AN ACTUAL CASH VALUE BASIS

Which is TRUE of the Dwelling policy Special Form? A. The form will cover the theft of contents B. Losses to the dwelling are paid on an actual cash value basis C. The form will cover the cracking of walls D. Contents are covered on an actual cash value basis

D. Contents are covered on an actual cash value basis Losses to the dwelling are paid on a replacement cost basis, while the contents are paid on an actual cash value basis. Cracking of walls and theft are excluded under the policy.

The Earth Movement exclusion contains all of the following perils, except: A. Earthquake B. Mudflow C. Landslide D. Explosion

D. Explosion

Which of the following coverages is not provided by the Personal Liability endorsement? A. First aid expenses B. Medical payments to others C. Defense costs D. Injury caused to a regular resident of the dwelling

D. Injury caused to a regular resident of the dwelling

Which of the following is false regarding the Broad Theft Endorsement under the Dwelling policy? A. It includes vandalism resulting from theft B. It applies only to owner-occupied structures C. It may be added to any of the Dwelling forms D. Only on-premises coverage is available

D. Only on-premises coverage is available The Broad Form Theft endorsement is attached to owner-occupied Dwelling policies to provide theft coverage for the owner-occupant's Personal Property. On-premises and off-premises coverage is available.

Water Damage

Flood, surface water waves, tidal water, overflow of a body of water, water or waterborne material that backs up through sewers or drains or overflows from a sump or sump pump, water or waterborne material below the surface of the ground — including water that exerts pressure on or seeps or leaks through a building, sidewalk, driveway, foundation, swimming pool, or other structure (such as basement walls). If a direct loss by fire or explosion results from water damage, it is covered.

Power Failure

The failure of power or other utility service if it takes place off the described location. Power failure occurring on the described location is covered.

Debris removal coverage

This policy pays the insured's reasonable expenses for the removal of debris of covered property if the property is damaged by an insured peril. Debris removal expense is included in the limit of insurance that applies to the damaged property Debris: scattered pieces of waste or remains

Dwelling

a house, apartment, or other place of residence

Peril of Vandalism or Malicious Mischief

is damage caused to someone else's property, simply for the sake of causing damage. This peril covers damage to parts of the premises for which you're responsible, as well as to personal property EX: someone slashes the tires of your bike on the premises

Coverage C: Personal Property

-Personal property coverage is provided off-premises subject to the following: -insured worldwide for loss by a covered peril -maximum limit = 10% coverage C limit -No additional insurance

DP-2 (Broad Form)

A named peril policy that adds several more perils. Includes all DP-1 coverage, the EC perils, VMM and the following: -Damage by burglars (not theft coverage) -Falling objects -Weight of ice, snow, or sleet -Accidental discharge or overflow of water or steam -Sudden and accidental tearing apart, cracking, burning and bulging -Freezing -Sudden and accidential damage from artificially generated electrical current ***Losses to the dwelling and other structures are paid on a REPLACEMENT VALUE BASIS , and losses to personal property are paid on an ACTUAL CASH VALUE BASIS

Which coverage pays for the loss of rents due to direct loss to the dwelling from a covered peril? A. Coverage D - Fair Rental Value B. Coverage C - Personal Property C. Coverage B - Other Structures D. Coverage E - Additional Living Expense

A. Coverage D - Fair Rental Value The Coverage D - Fair Rental Value limit of insurance is up to 20% of the Coverage A limit.

Water damage caused by which of the following is a covered loss under the Dwelling policy? A. Discharge caused by a plumbing failure B. Leaks through a driveway C. Overflow of water from a sump pump D. Water below the surface of the ground

A. Discharge caused by a plumbing failure Water damage is excluded if caused by surface water, tidal water, and leakage through a building, foundation, or other structure.

Under a Dwelling Policy, the coverage extension of Debris Removal will pay for: A. The removal of the debris caused by an insured peril B. The removal of debris resulting from the action of a civil authority C. The removal of the debris from an automobile accident on the insured location D. The removal of debris resulting from demolition required by an ordinance or law

A. The removal of the debris caused by an insured peril This coverage pays the insured's reasonable expenses for the removal of debris of covered property if the property is damaged by an insured peril.

Damaged household and personal property in transit between the insured's old and new residences is covered by the Dwelling Policy under: A. Coverage D B. Coverage C C. Coverage A D. Coverage B

B. Coverage C Coverage C is the coverage for Personal Property. 10% of the Coverage C limits apply to the Insured's Personal Property away from the premises anywhere in the world.

Which of the following dwelling program forms covers the building on an open peril basis? A. DP-1 B. DP-3 C. DP-2 D. DP-4

B. DP-3 The DP-3 Special form covers the dwelling and other structures on an open peril basis, which covers all perils except the perils specifically excluded.

Under Coverage A of a Dwelling Policy, all of the following are covered, except: A. Fire or lightning damage to outdoor television antennas B. Land, including the land on which the dwelling is located C. Materials for repairing the dwelling, located on the described location D. Outdoor equipment on the location used to service the dwelling

B. Land, including land on which the dwelling is located

Under the Broad Form Dwelling Policy (DP-2), which peril is not included for coverage without an endorsement? A. Damage to appliances by artificially generated electricity B. Theft C. Volcanic Eruption D. Falling Objects

B. Theft

Which of the following is false regarding dwelling policies? A. Incidental business occupancies are permitted B. Trees, shrubs and plants are covered for up to $2,500 total C. Mobile homes are eligible if written on a DP-1 D. Farm dwellings are not eligible

B. Trees, shrubs and plants are covered for up to $2,500 total

Under the Dwelling policy, which is correct regarding coverage of trees, shrubs or plants? A. The Limit of Liability is $1,000 for any tree, shrub, or plant B. All vehicle damage to trees, shrubs, or plants is covered C. Damage by wind, hail, weight of ice, snow or sleet is not covered D.Theft of shrubs and plants is covered

C. Damage by wind, hail, weight of ice, snow or sleet is not covered Damage to outdoor plants by forces of nature other than lightning are so common that such damage is considered uninsurable. Coverage for certain other perils is provided, with a limit of $500 for any one tree, shrub, or plant.

The Dwelling Broad Form (DP-2) insures against all of the following perils, except: A. Breakage of glass that is a part of a building, storm door or window B. Damage caused by burglars C. Theft D. Accidental discharge or overflow

C. Theft

Dwelling Property Policy

Can be purchased to insure properties solely used for residential purposes. -insures 1-2-3-4- family residential dwellings that are: -owner occupied -tenant occupied -seasonal or secondary dwellings

Coverage A: Dwelling

Coverage A insures: -The dwelling and attached structures Ex: garages, carports, decks -materials and supplies to construct or repair -building and outdoor equipment -NO COVERAGE FOR LAND

Coverage B: other structures

Coverage B insures: -other structs NOT attached to the dwelling ex: fence / utility line /rock garden -NO coverage for structure rented to others -NO COVERAGE FOR LAND -insurance limit is up to 10% of Coverage A -DP-1 doesn't increase Coverage A limit -DP-2 and DP-3 this is additional insurance

Coverage C: Personal Property

Coverage C insures: -personal property usual to a dwelling occupancy AND owned or used by an insured or resident relative AND while on the premises -At insured's request, personal property owned by a guest or servant while on the premises Property NOT covered includesL: -Accounts, bank notes, bills, coins, and currency -Birds, animals, or fish -Aircraft, hovercraft, and watercraft -motor vehicles -Data -Credit Cards, electronic transfer cards -water or steam -gravemarkers

DP-3 (special form)

Coverage for the dwelling and other structures is provided on an open perils basis, meaning coverage is provided for all causes of loss except for those perils specifically excluded. In addition to the policy's General Exclusions, the DP-3 specifically excludes the following losses under Coverages A and B: Losses to the dwelling and other structures are paid on a replacement cost basis, and losses to personal property contents are paid on an actual cash value basis to the insured.

All of the following are eligible for coverage under the Dwelling Program, except: A. A vacation home used as a secondary residence B. A single-family home in the suburbs C. A duplex D. A beauty shop with a small bedroom attached

D. A beauty shop with a small bedroom attached A dwelling used primarily for business is NOT ELIGIBLE

Automatic Increase in Insurance Endorsement

EX: A dwelling policy is issued January 1 with a dwelling coverage limit (Coverage A) of $200,000. The policy has an Automatic Increase/Inflation Guard endorsement for 5%. If a loss occurs 6 months later, the amount of coverage is now $205,000. The annual increase would be $10,000 for the year, therefore, the increase for 6 months is $5,000. When the policy renews, the increased dwelling coverage becomes $210,000 and the 5% inflation protection will be based on the increased limit (not $200,000) for the following year.

Earth Movement

Earthquake, including land shock waves or tremors before, during or after a volcanic eruption; landslide; mudslide or mudflow; subsidence or sinkhole, earth sinking, rising, or shifting. Coverage is excluded whether the earth movement is caused by human, animal, or natural forces. If a direct loss by fire or explosion ensues from earth movement, it is covered.

Coverage C

Personal Property Coverage applies to household and personal property usual to the occupancy as a dwelling if it is owned by the insured or by members of the insured's family who reside with the insured. Loss due to vandalism and malicious mischief is covered even if the property has been vacant (EMPTY) for 60 days or more. Coverage only applies while insured property is located at the described location. After a loss and at the insured's request, Coverage C will also apply to personal property of a guest or servant while located on the described location. Personal property of a tenant or boarder is not covered.

Broad Theft Coverage

Provides insurance for the perils of theft, attempted theft, and vandalism or malicious mischief that results from theft or attempted theft. • No VMM coverage applies if the dwelling was vacant for more than 60 consecutive days immediately before the loss. • On-premises coverage is provided for covered property located at the described location occupied by an insured. • Off-premises coverage is provided when covered property is away from the described location; however, the property must be owned or used by an insured or residence employee.

Trees, Shrubs, and Other Plants

Under the DP-2 and DP-3 forms, coverage is provided for trees, shrubs, plants or lawns on the described location for loss caused by the following perils: fire or lightning; explosion; riot or civil commotion; aircraft; vehicles not owned by the named insured or by a resident of the described location; vandalism or malicious mischief; and damage caused during a burglary or an attempted burglary. This coverage is not included in the DP-1 form. Damage to trees, shrubs, plants, or lawns caused by the following perils are not covered: wind; hail; weight of snow, ice or sleet; and loss by theft. The limit of insurance for this coverage is up to 5% of the Coverage A limit, with a maximum of $500 applying to any one tree, shrub, or plant. This is additional coverage. DP-2 and DP-3 only

The Personal Liability endorsement includes each of the following additional coverages, except: A. Debris removal B. Claims expenses C. First aid expenses D. Damage to the property of others

A. Debris removal

Which statement is true concerning Dwelling policies? A. 100% of Coverage C applies to worldwide coverage B. The Special Form insures the dwelling on an open perils basis, and insures the contents against the broad form perils C. The Basic Form pays for losses to the dwelling on a replacement cost basis D. The Special Form automatically covers the contents against the peril of theft

B. The special form insures the dwelling on an open perils basis, and insures the contents against the broad form perils The Special Form insures the dwelling on an open perils basis, and insures the contents against the broad form perils. Theft is excluded. The Basic Form settles losses to the dwelling on an ACV basis. Up to 10% of the Coverage C limit may be applied to covered property anywhere in the world.

Personal Liability Supplement

Because the dwelling forms only provide property coverage, if personal liability coverage is desired, coverage must be secured under another policy or an endorsement must be attached to the dwelling policy. The Personal Liability endorsement contains its own Definitions section and provides Coverage L - Personal Liability and Coverage M - Medical Payments to Others.

All of the following are types of property NOT covered under Coverage C - Personal Property, except: A. Credit cards or fund transfer cards B. Motor vehicles C. Canoes D. A dog

C. Canoes Also excluded are accounts, bank notes, coins and currency, birds, animals, or fish, and electronic data processing tapes, wires, and records.

An attached carport is covered under which of the following coverages? A. Coverage C B. Coverage B C. Coverage A D. Coverage D

C. Coverage A

All of the following is covered under Coverage B - Other Structures, except: A. Storage building B. Swimming pool C. Shed D. Construction materials

D. Construction Materials

Other Coverages

Debris Removal Improvements, Alterations, and Additions Reasonable Repairs Property Removed Trees, Shrubs, other plants Fire Department Service charge Collapse Glass Ordinance or Law

All of the following are covered perils under the Extended Coverage Endorsement to the DP-1, except: A. Windstorm B. Weight of ice, snow or sleet C. Vehicles D. Volcanic eruption

B. Weight of ice, snow or sleet Weight of ice, snow or sleet is not part of the EC perils

Which statement is true regarding the Personal Liability Supplement to the Dwelling policy? A. The supplement provides coverage for claim expenses B. The Limit of Liability is the same as the Coverage A amount C. The supplement covers damage to the insured's personal autos D. The supplement covers professional services rendered by the insured

A. The supplement provides coverage for claim expenses

All of the following statements are correct regarding the Fire Department Service Charge in Dwelling Policies, except: A. The policy will pay up to $1,000 B. The coverage is additional insurance C. The policy deductible does not apply to this coverage D. Coverage is not provided if the premises is within the same jurisdiction as the fire department

A The policy will pay up to $1,000 A typical Dwelling policy will pay up to $500 for liability assumed for fire department charges when the fire department is called to save or protect covered property from an insured peril. Coverage does not apply if the property is located within the limits of the city, municipality, or protection district furnishing the fire department response. This is additional insurance and the policy deductible does not apply.

Coverage D: Fair Rental Value

Fair Rental Value insures: -loss in rental value sustained by insured if covered loss under Coverage A, B, or C makes dwelling not fit for normal use -Does not include continuing expenses -Insurance limit is UP TO 20% of coverage A. -DP-! doesnt increase Coverage A limit -DP-2 & DP-3 this is additional insurance

Reasonable Repairs

If covered property is damaged by an insured peril, the policy will pay the reasonable costs incurred by the named insured for necessary measures taken to protect covered property from further damage. **This is not additional insurance and coverage does not increase the limit of insurance that applies to the covered property.

Dwelling Under Construction Endorsement (DP 11 43)

This endorsement is needed because eligibility for the dwelling property coverage requires insured dwellings to be occupied for residential purposes. Dwellings under construction are not occupied and, when this endorsement is added, the named insured agrees to advise the insurer when construction is completed. The limit of liability for Coverage A is provisional and is based on the building's value upon completion. The limit of insurance in place at any time prior to completion is a percentage of the Coverage A limit that equals the proportion the actual value bears to the value on the date of completion. Once the construction is completed, the named insured must notify the insurer to obtain consent to occupy the dwelling and to adjust the policy premium. Occupancy of the building under Coverage A, as a dwelling, is permitted for 30 days after completion.

Coverage E

Additional Living Expenses Like Coverage D, Coverage E provides insurance for 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. Coverage E is automatically included in the DP-2 and DP-3 forms; it's not included in the DP-1 form. The policy pays any necessary increases in living expenses incurred by the named insured when a covered loss makes the unit in which the named insured lives uninhabitable. Payment is made only to the extent the insured's household can maintain its normal standard of living. The Coverage E limit of insurance is up to 20% of the Coverage A limit and is additional coverage. Examples of expenses paid by Coverage E are the costs of a motel room, boarding pets, and dining out.

Which DP form does NOT COVER burglar damage? A. Broad Form (DP-2) B. None of the Dwelling Policies cover damage done by burglars C. Special Form (DP-3) D. Basic Form (DP-1)

D. Basic Form (DP-1)

Coverage A

Dwelling Coverage applies to the dwelling described in the declarations, used principally for residential purposes, including structures attached to the dwelling, such as an attached garage, carport, breezeway or deck. Coverage also includes materials and supplies on or next to the described location used to construct, alter, or repair the dwelling or other structures at the described location. Unless otherwise covered in the policy, building equipment and outdoor equipment used to service the described location is considered part of the dwelling IF such property is located on the described location. No coverage applies to land, including land on which the dwelling is located. The Coverage A limit of insurance appears on the declarations as a specific limit. It is chosen by the named insured at the time coverage is applied for and should represent the dwelling's replacement value

Dwelling Program Eligibility

Dwellings must be used principally for residential dwelling purposes and cannot have more than 4 dwelling units or more than five roomers or boarders. Mobile homes are eligible if they are permanently affixed to a foundation, but only on the Basic Form of coverage (DP-1). Incidental business occupancies, such as schools, studios, and offices, are permitted if the primary use of the dwelling is as a personal residence. Dwellings located on farms are not eligible.

Automatic Increase in Insurance

Inflation protection applied annually based on a percentage shown on the endorsement

Ordinance or Law

This is an additional coverage for DP-2 and DP-3. It applies to increased costs incurred by the named insured due to the enforcement of any ordinance or law that requires or regulates the construction, demolition, remodeling, renovation, or repair of a covered building or structure because of a covered loss. Up to 10% of the Coverage A limit of liability may be used for this coverage and, if the insured is a tenant, up to 10% of the limit of insurance that applies to improvements, alterations, and additions may be used. Some or all of the limit of insurance for this coverage may be used to pay for the increased costs incurred by the named insured to remove debris resulting from the construction, demolition, remodeling, renovation, repair, or replacement of covered property. This is additional insurance, and NO coverage is provided for any loss in value of a building or structure due to the enforcement of any ordinance or law or costs incurred by ordinances that require pollution clean up, removal, treatment, etc.

Glass or Safety Glazing Material

Under the DP-2 and DP-3 forms, coverage is provided for the breakage of glass or safety glazing material if it is part of a covered building, storm door, or storm window. Coverage is provided for direct loss caused by earth movement and the pieces, fragments, or splinters of broken glass from the glass or safety glazing material. No coverage applies if the dwelling was vacant for 60 consecutive days immediately before the loss. The vacancy provision doesn't apply to losses caused by earthquake. Loss for damage to glass will be settled on the basis of replacement with safety glazing materials when required by ordinance or law. Coverage doesn't increase the limit of liability and is NOT provided by the DP-1 form.

War

includes undeclared war, civil war, insurrection, rebellion, revolution, or any warlike act by a military force. The discharge of a nuclear weapon will be deemed a warlike act, even if accidental. War also includes any consequence of the preceding.