Chapter 5 3rd attempt

Coverage D of a Dwelling policy covers which of the following losses? A. Access prevented by a civil authority because of a neighboring location's direct loss by a peril covered under the insured's policy B. Additional living expenses after a covered loss C. Loss of rental income due to the cancellation of a lease D. Damage to a swimming pool

A. Access prevented by a civil authority because of a neighboring location's direct loss by a peril covered under the insured's policy

A Broad Form Dwelling policy would cover all of the following losses, except: A. Fence that is damaged by a fallen tree branch B. Glass on a storm door that is broken during a riot C. Building damage caused by burglars D. Floor damage caused by accidental discharge of water from a household appliance

A. Fence that is damaged by a fallen tree branch

If an insured adds the Automatic Increase in Insurance Endorsement to their Broad Form Dwelling policy, what effect does it have on the policy? A. It increases policy limits for the dwelling and other structures only B. It increases policy limits for the dwelling only C. It increases policy limits for the dwelling, other structures, and personal property only D. It increases policy limits for all coverages

A. It increases policy limits for the dwelling and other structures only

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

A. No Dwelling form offers this coverage

W has a Basic Form Dwelling policy with Extended Coverage that insures a rental property for $80,000. Vandals attack a tree on the property, causing it to fall and severely damage the dwelling. The tree is worth $500, and the dwelling sustained $25,000 of damage. How does W's policy provide coverage? A. No coverage is provided B. The policy covers the loss to the tree and the dwelling C. The policy covers the loss to the tree, but not the loss to the dwelling D. The policy covers the loss to the dwelling, but not the loss to the tree

A. No coverage is providedop

A policyholder has a Special Form Dwelling policy. Which of the following statements about loss settlements is correct? A. Personal property is valued on an actual cash value basis B. Outdoor equipment covered under Coverage A is valued on a replacement cost basis C. Other structures must meet a 50% insurance to value requirement to receive full coverage for partial losses D. Losses to the dwelling are paid on an actual cash value basis

A. Personal property is valued on an actual cash value basis

H has a Basic Form Dwelling policy insuring a single-family rental property for $100,000. A fire causes $8,000 in damage to a detached garage, and removing debris will cost $4,000. How much will the insurer pay for these losses? A. $8,000 B. $10,000 C. $12,000 D. $4,000

B. $10,000

S owns a rental property covered by a Broad Form Dwelling policy. After a fire loss to the dwelling, S's policy would cover all of the following, except: A. Hotel costs incurred while the dwelling is repaired B. All food costs incurred while the dwelling is repaired C. Increased gas costs to get to work while S stays in a hotel D. Loss of rental income while the dwelling is uninhabitable

B. All food costs incurred while the dwelling is repaired

K has a Broad Form Dwelling policy. Which coverage applies to the building described in the Declarations? A. Coverage E B. Coverage A C. Coverage B D. Coverage C

B. Coverage A

Under the Broad Form (DP-2), what limit of insurance is available for fair rental value and additional living expenses coverages? A. 30% of the Coverage A limit B. 10% of the Coverage A limit C. 50% of the Coverage A limit D. 20% of the Coverage A limit

D. 20% of the Coverage A limit