Dwelling Property (DP) Policies- chapter 5
The standard deductible of a dwelling policy is
$500
A dwelling is insured for $60,000 and its contents for $30,000. According to the DP-1, what part of the insurance may the insured have applied to rental value coverage?
20% of the coverage on the dwelling
A dwelling Property Basic form provides coverage for property removed. This means that the insurer will cover insured property against direct loss from any cause of loss when such property is removed from the dwelling when endangered by fire or any other covered peril for up to:
5 days
John's home is endangered by fire. He removes several items of personal property from the dwelling and places them in a neighbors garage. Under property removed coverage, John will have coverage for his property at this other location under his dwelling property basic form for:
5 days
A risk eligible for coverage under a dwelling property form may be owner occupied or non-owner occupied. Most dwellings used for residential purposes are eligible EXCEPT:
A single-family dwelling used as a beauty shop
Which of the following structures would not qualify for a dwelling form?
A six unit residential apartment building
If the insured covers the dwelling for at least 80% of the cost to replace it, he will receive what settlement option for dwelling damage on the DP-1 dwelling property form?
Actual Cash Value (ACV)
Dwelling property coverage that provides for loss of use when the insured dwelling is not habitable due to a covered loss is found in:
Coverage D
How are Coverage D and Coverage E paid in both the Broad and Special forms under the Dwelling Program
Coverage D and E are paid up to 20% for both combined, not each separately of the dwelling coverage amount.
How are coverage D and coverage E paid in both the broad and special forms under the dwelling property program?
Coverage D and E are paid up to 20% for both combined, not each separately, of the dwelling coverage amount
Under what dwelling form can the insured collect for the replacement cost when the dwelling is destroyed?
DP-2 and DP-3
Which of the following Dwelling Property forms insures against loss to dwelling on an open perils basis?
DP-3
If the insured covers the dwelling for at least 80% of the cost to replace it, he will receive what settlement option for dwelling damage on the DP-1 dwelling property form?
actual cash value
It is especially important to remember that the Coverage B limit is always __% of the Coverage A limit. Some questions on the state exam may ask you to calculate the loss payment for a claim under Coverage B, but only give you the Coverage A policy limit. It is your responsibility to know that Coverage B is __% of the given Coverage A limit so that you can accurately calculate the payment amount.
10
Under the Loss Settlement clause of a DP policy, which of the following policies provides dwelling and contents on an ACV basis?
DP-1
A dwelling policy is a monoline property insurance policy. One type of dwelling policy is the dwelling property special form that provides open-peril coverage. Which of the following situations is covered by this policy?
Damage to covered property caused by a burglar
Which of the following perils is covered by a dwelling property basic form?
Destruction of property caused by lightning
A standard dwelling property form provides no personal liability coverage. Which of the following may be added to this type of policy to provide such protection to an insured?
Personal liability supplement
Which of the following descriptions of Dwelling Program coverage forms is INCORRECT?
The basic form pays for loss to the dwelling and detached other structures on a replacement cost basis
Coverage A in a dwelling Property Policy provides all of the following coverage, EXCEPT:
covers any damage or loss to the land itself
An owner occupant of a dwelling insured by a dwelling policy is eligible for what type of personal theft coverage?
either limited or broad theft
All of the following are other coverages automatically part of a dwelling property form EXCEPT:
fair rental value (coverage D)
What risk would be eligible for a dwelling fire policy?
four-unit dwelling
In order to get replacement cost on the dwelling and other structures on the DP-2 and DP-3, what must the insured do?
insure the property for at least 80% of the cost to replace it
A dwelling property basic form is named peril policy. All of the following choices are covered perils in this standard policy, EXCEPT:
loss as a result of windstorm
A dwelling property basic form provides coverage for all of the following EXCEPT:
loss of the rental value of an un-rented apartment, if held for rental
Replacement cost coverage for dwellings is available under:
only broad and special forms
A dwelling policy provides property insurance coverage for damage to an insured's home and personal property. If this policy is written on an open-peril basis and the insured suffers a loss by theft of attached building materials, how will the insurer respond to the claim?
pay the loss less the deductible
A personal liability supplement added to a dwelling property policy:
provides liability coverage for occurrences happening both on & off the premises
Extended coverages may be added to a dwelling property basic form for an additional premium. Each of the following is covered by extended coverages EXCEPT:
vandalism damage
