Dwelling Insurance (7)
under the DP-1, the insured may opt to have property covered against?
1) fire, lightening and internal explosion 2) all of the perils described in A plus the extended coverage peril 3) all of the perils described in A plus the extended coverage perils and vandalism and malicious mischief
The Johnsons' home is covered by the DP-3. When a fire damages the home, they are forced to stay at a motel for a month while repairs made. What coverage would reimburse them for these expenses?
Coverage E
An insured has a $40,000 dwelling special form (DP-3) policy. After hosting an afternoon party, the insured discovers that the family's credit cards and ATM cards are missing. If the cards are used, what coverage is provided under Coverage C-Personal Property and why?
$0. Coverage C excludes coverage for credit cards. The dwelling forms exclude coverage for accounts, bank notes, bills, coins, securities, animals, aircraft, motor vehicles and equipment, watercraft, and data.
An insured has a $70,000 dwelling policy (DP-1 basic) with a $500 deductible. While the insured is on vacation, burglars enter the house and steal several items. The total loss is estimated to be $5,000. How much of that loss will be paid under the policy?
$0.00 The DP-1 basic is a named peril policy that provides coverage only if a loss is caused by one of the perils specifically named or identified in the policy. If a peril is not listed, it is not covered. The DP-1 basic covers only fire, lightning, and internal explosion. Burglary is not listed as a named peril and is not covered.
An insured has a $60,000 special form (DP-3). When a covered loss in the amount of $10,000 damages the attached garage, how much of that amount is paid under the Coverage B-Other Structures?
$0.00 The attached garage is considered part of the dwelling so the $10,000 is paid under Coverage A-Dwelling. Real property located on the described property and separated from the dwelling by clear space is covered by Coverage B-Other Structures.
Which dwelling forms pay losses to personal property on an actual cash value basis?
ALL DP-1 DP-2 DP-3
Coverage E in the dwelling policy provides coverage for:
additional living expense
An insured has a dwelling policy (DP-3 special form) for $50,000. After a covered fire loss, the insured moves to a local hotel while repairs are being made to the house. While staying in the hotel's penthouse suite, the insured uses room service, always choosing the most expensive food and wine. The entire stay costs $12,000. How much of that amount will the policy cover?
$10,000.00 Under the special form dwelling policy, up to 20% of Coverage A may be applied to either or both fair rental value and additional living expense as an additional amount of insurance. In this case, the insured is covered for up to $10,000 (20% of the $50,000 Coverage A amount). The additional $2,000 ($12,000 - $10,000) is the insured's out-of-pocket expense. Insurance is intended to make the insured whole after the loss, not to enrich the insured.
Gisselle's home is covered by the DP-3 with the personal liability and medical payments to others endorsement. When a visitor and Gisselle's home is injured, Gisselle calls and an ambulance to provide immediate first aide and transfer 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 $1000. How much would the insurer pay for this loss?
$1050. The first aide is in addition to...
The dwelling policy will provide how much additional coverage for a fire department service charge?
$500.00 Dwelling policies provide up to $500 for fire department service charges, the same amount that the homeowners policies provide.
The insured has a DP-3 covering a home that has a replacement value of $1000,000. 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?
$9000 Must have 80% to qualify for replacement cost.
A DP-1 automatically provides coverage for what?
-fire -lightening -internal explosion
what coverage's are included in all dwelling forms?
1) fire department charge 2) debris removal 3) reasonable repairs 4) property removed
An insured has an $80,000 dwelling policy with a $500 deductible. In addition to the house, the property includes a detached garage, storage shed, and an artist's studio. During a thunderstorm, the garage and storage shed are damaged by lightning. The loss is $3,000 to the garage and $1,000 to the shed. What amount is covered by the policy?
3500 Coverage B--Other Structures provides coverage for real property located on the described location and separated from the dwelling by clear space. Up to 10% of Coverage A (in this case $8,000) is included for other structures. Lightning is a covered peril so the policy would pay $3,500 (the $4,000 loss less the $500 deductible).
In the dwelling forms, damage from vandalism is not covered if the building has been vacant for more than:
60 consecutive days.
What percent of a loss must you have to qualify for replacement cost?
80%
Which of the following would be covered under Coverages A or Coverages B of the dwelling policy? a) A storage shed 100 feet in back of the insureds dwelling where she keeps various yard tools b) a detached garage that has been altered to house a manufacturing operation c) a stack of lumber placed at the edge of the insureds property that will be used to construct a boat shed d) a water softener and water heater located in the insureds attached garage
A, B and D A detached garage that is used for commercial, manufacturing, or farming purposes may not be covered under a dwelling policy.
Damage caused by burglars is excluded under which of the dwelling forms?
Basic Form.
Which of the following statements about the dwelling basic form (DP-1) is CORRECT? A) The policy covers fire, lightning, and all types of explosion. B) The policy is designed to provide broad coverage for personal property. C) The DP-1 provides coverage for appurtenant structures. D) The DP-1 is an open-perils policy.
C) The DP-1 provides coverage for appurtenant (attached) structures. The policy provides coverage for appurtenant (other) structures. The DP-1 policy is a named perils policy that provides coverage only for perils specifically named in the policy: fire, lightning, and internal explosion. The definition of internal explosion does not include electric arcing, breakage of water pipes or pressure devices, or loss by explosion of steam pipes or boilers. Coverage for personal property is limited to a declared value, and not all items may be insured.
An insured suffers a covered loss to some rental property that forces the tenant to move to another location. Under which section of the dwelling policy would the insured receive payment during the time the property is being repaired?
Coverage D--Fair Rental Value. Coverage D--Fair Rental Value is the amount payable to an insured homeowner for loss of rental income due to damage that makes the premises uninhabitable. Payment is made for the shortest time required to repair or replace the part of the rental location.
Additional line expenses is which type of coverage?
Coverage E
Which of the following statements about dwelling policies is CORRECT? A) Theft can be covered under an unendorsed dwelling policy. B) Liability coverage is automatically included in a dwelling policy. C) The building must be occupied to be insured. D) They may be used to insure rental homes.
D) They may be used to insure rental homes.
which dwelling forms pay losses to dwellings and other structures on an actual cash value basis?
DP-1
Which two dwelling properties are covered under coverage E?
DP-2 and DP-3
Wilson owns a 4-family apartment building. Which dwelling form(s) would provide coverage against building damage caused by the freezing of plumbing, heating, air conditioning, and sprinkler systems?
DP-2 and DP-3
Under which of the dwelling forms may the insured be reimbursed for the replacement cost when the dwelling is destroyed?
DP-2 and DP-3 = replacement cost DP-1 = ACV
Damage to covered property caused by glass breakage is covered under which policy?
DP-2 and DP-s but not DP-1
A property owner wants to insure both the rental property and any of the tenant's belongings if they are stolen. Which policy would you recommend and why?
DP-3 special form and a separate tenant's policy to cover personal property.
Which one of the following types of property CANNOT be covered by a dwelling policy? A) Row houses. B) Three apartment dwellings. C) Farm dwellings. D) Mobile homes on permanent foundations.
Farm dwellings.
How does the dwelling policy provide theft coverage?
It must be added by endorsement.
Compared to the homeowners policy, the dwelling policy provides what type of coverage?
Limited
Will coverage L of the personal liability and medical payments to others cover a broken rented table?
No, rented items are not covered.
A home under construction is insured by the dwelling policy with the dwelling under construction endorsement attached. The policy limit is $100,000. Is the amount of coverage available during the entire policy period?
No. Coverage amount is based on the percent of completion of the home.
Of the dwelling forms, which one of the following provides the broadest coverage?
Special
Myrtle has a dwelling policy with broad theft coverage for on and off the premises. Which of the following theft losses would be covered? a) A $400 handgun taken from a bureau in her home b) a $9000 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 CD player removed from the dashboard of her car that was parked in her garage.
a) A $400 handgun taken from a bureau in her home B, C, and D are all excluded under broad theft coverage.
Which of the following coverage's are contained in an unendorsed dwelling policy? a) dwelling b) Other structures c) Liability d) personal property e) fair rental value f) medical payments to others
a) dwelling b) Other structures d) personal property e) fair rental value c) Liability- may be added as an endorsement f) medical payments to others-- may be added as an endorsement
Which of the following losses would be excluded under the DP-1? a) while the insured is on vacation, a power failure that occurs away from the insureds home causes electricity to go off in the insureds neighborhood for 10 hours. As a result, large amounts of food stored in the freezer are ruined. b) when Languid Lake overflows the first story of the insureds home is flooded, causing extensive damage. c) following a fire, the insured slippers and additional loss because a city ordinance requires that he replaced his frame dwelling with more expensive fire resistant materials. d). An earthquake causes a fire that destroyed the insureds home.
a, b, and c.
A dwelling policy can be used to insure all of the following EXCEPT: A) duplexes. B) lake cabins. C) apartment building with 6 units. D) rental homes.
apartment building with 6 units. A dwelling policy may be used to insure a building with up to four apartments.
Which of the following could be covered under a dwelling policy? a) Mobile home not permanently located b) Home under construction c) town house d) home rented to another person e) five-unit apartment building
b) Home under construction c) town house d) home rented to another person a) Mobile home not permanently located--must be permanent e) five-unit apartment building--needs to be 4 or less
Which of the following items of personal property would be covered under a dwelling policy? a) motorcycle b) poodle c) pool table d) sailboat
c) pool table
All of the following perils are covered under the DP-2 Broad Form EXCEPT: A) loss caused by fireplace smoke. B) earthquake. C) falling objects. D) freezing of pipes.
earthquake
The following perils may be insured against under a basic dwelling policy EXCEPT: A) vandalism and malicious mischief. B) flood. C) fire. D) lightning
flood Water damage, including flooding, is not a covered peril under a dwelling policy. Fire and lightning are covered perils on the basic form, and vandalism and malicious mischief is available for an additional premium.
A DP-2 policy would cover losses from all of the following perils EXCEPT: A) weight of ice, snow or sleet. B) damage by burglars. C) infestation of insects. D) falling objects.
infestation of insects.
the DP-3 provides
open peril coverage for the dwelling and broad coverage for personal property
The special form (DP-3) covers the dwelling and other structures for:
open perils
A dwelling policy can insure all of the following types of personal property EXCEPT: A) motorized wheelchairs. B) lawnmowers. C) furniture. D) sailboats.
sailboats
All of the following statements are true regarding an insured's duties to the insurer after a loss to an insured dwelling EXCEPT: A) the insured must furnish proof of loss. B) undamaged property must be protected from further loss. C) the insurance company must be notified of the loss. D) the damaged property must be appraised.
the damaged property must be appraised.
The DP-2 insures against fire, lightening, and...
the extended coverage perils, V&MM, and additional perils
The greatest difference between the dwelling basic form (DP-1) and the broad form (DP-2) is that the DP-2 automatically includes coverage for:
vandalism and malicious mischief (VMM)
