Florida Dwelling, Homeowners & Personal Inland Marine Insurance
Which of the following is NOT a general exclusion of all the Dwelling policy forms?
"Lightning" is covered, it is NOT an exclusion.
Charlie has her house covered by a DP-1 form with a $50,000 Coverage A limit. There are no endorsements attached for a deductible or any other coverage. When it is damaged by a fire, Charlie is provided how much coverage for "Additional Living Expenses"?
$0, Charlie's policy is a DP-1 and does not provide Coverage E -- Additional Living Expenses unless it is added by endorsement.
The insured has suffered a severe storm and some of his trees, shrubs, and plants are heavily damaged by the wind. How much coverage could the insured expect to receive for his claim under his DP-3 Dwelling policy?
$0., The Dwelling policy provides an additional coverage for trees, shrubs, and plants. However, the coverage applies for specified perils and "wind" is a peril that is NOT covered for the loss to trees, shrubs, and plants. The insured will not collect anything for this loss.
The insured carries an unendorsed DP-3 dwelling policy on his home and personal contents. While traveling abroad someone broke into the home and stole $200 in cash, a shotgun valued at $1,000, and other household items valued at $2,000. Damage caused by the burglars is $1,500. Assuming no deductible applies to their coverage how much would be paid?
$1,500, The DP-3 only provides damage to covered property caused by the burglars. Theft is excluded under the DP-3 unless endorsed with the theft endorsement.
The insured has suffered roof damage as a result of a tornado. He makes temporary repairs until permanent repairs can be made. He spends $1,500 for this work. How much, if any amount, will the DP-2 Dwelling policy pay on the repairs?
$1,500, The policy will pay all of the costs due to the "reasonable repairs" clause in the policy. This pays for the cost to make reasonable repairs in order to protect covered property from further loss.
Under a standardized DP-2 or DP-3 policy, what is the maximum that would be paid for additional living expenses if Coverage A was $60,000?
$12,000, The form provides 20% for additional living expenses and fair rental value. You can figure this out in your head by asking yourself, "What is 10% of $60,000" and then double it. 10% of $60,000 is $6,000 x 2 = $12,000. This is a coverage that is frequently amended to comply with state laws, so please notice that this question is asking about the STANDARDIZED policies.
Roxanne has her home covered under a DP-2 policy. She regularly works on her laptop computer at the bar in her kitchen. One day she decided to go out for lunch, leaving her laptop plugged in and turned on. While she was out, the electrical cord attached to her laptop began to short out and create sparks. One of the sparks fell on a dish towel Roxanne had left on the bar and it caught fire. This led to a larger fire that caused extensive damage to Roxanne's kitchen. The damage caused to the kitchen came to $15,000. The laptop was destroyed and it's ACV was $1,800. The policy did not have a deductible form attached. How much will be paid on this claim?
$15,000, The policy will pay for the damage to the kitchen caused by the fire, but it excludes coverage for the laptop computer under the "Artificially Generated Electrical Current" peril.
An insured is covered under a DP-2 broad form Dwelling policy. A water pipe has frozen and burst and the insured has suffered floor and ceiling damage in his two-story home. The cost to remove and replace the walls to get to the pipe is $300. The cost to repair the floor is $400. The pipe that burst must now be replaced with a more expensive option to meet newer building codes. The cost to replace the pipe is $200. How much will the insurer pay?
$700, The form will not cover the pipe that burst and caused the damage, but will cover the other damages.
Don is having a new home built. He has purchased a Dwelling policy to insured the home and has attached the Dwelling Under Construction endorsement. The policy limit for the completed dwelling is $200,000. Don's home is 15% complete when a covered loss occurs. How much of the coverage limit will apply to the loss?
15% of $200,000 will apply, which is $30,000.
A Personal Articles Floater (PAF) is designed to protect property owners from damage or losses to personal property while in the process of transport. Which of these statements about a PAF is FALSE?
A PAF only covers property in the continental United States.
Which of the following is NOT excluded under Coverage C of a Dwelling policy?
A canoe used on the premises by the insured
All of the following are types of businesses that would be covered by the "Permitted Incidental Occupancies" endorsement to a Dwelling policy, EXCEPT:
A dog grooming business with a receptionist and 3 groomers employed by the named insured would NOT be covered by the "Permitted Incidental Occupancies" endorsement to a Dwelling policy. No more than 2 people can be working in the business at any one time to have the endorsement provide coverage.
The "Sudden and Accidental Tearing Apart, Cracking, Burning or Bulging" broad form peril applies to all of the following, EXCEPT:
Any structural wall of the covered dwelling or other structure
Which of the following is NOT an "other coverage" of the DP-1 form?
Collapse
Danielle has elected to purchase and attach the "Automatic Increase in Insurance" to her Dwelling policy. Which of the following coverages of the policy will be affected by this endorsement?
Coverage A - Dwelling and Coverage B - Other Structures are the only insuring agreements that are affected by the "Automatic Increase in Insurance" endorsement.
Coverage D of a Dwelling policy provides coverage for:
Coverage D of a Dwelling policy is the Fair Rental Value insuring agreement.
Under the DP-3 special form, which of the following losses would NOT be covered?
Damage to the dwelling that is caused by an infestation of mice.
Which of the following statements regarding the eligibility requirements for coverage under a Dwelling policy is TRUE?
Dwellings owned by corporations or other business entities are eligible.
The standard Dwelling coverage forms may be used to cover all of the following, EXCEPT:
Farm houses are not eligible for coverage under the Dwelling forms.
Kari has her home covered under a DP-3 form and has suffered a loss that will require major repairs. How much coverage does she have to comply with laws causing an increase in costs due to new regulations requiring newer plumbing materials be used when the repairs are made?
In Kari's situation, she will have 10% of the Coverage A limit as additional insurance under the "Ordinance or Law" other coverage of the DP-2 and DP-3.
An insured has his home covered under Dwelling policies with three different insurance companies. Company A provides 50% of the coverage, Company B provides 45% of the coverage, and Company C provides 5% of the coverage. When settling a claim for $10,000 worth of damage to the dwelling, what will Company C pay?
In this situation, Company C will pay $500. 5% of $10,000 is $500. You should be able to figure this in your head by asking yourself "What is 10% of $10,000?" 10% of $10,000 is $1,000. Then, you can simply figure that 5% is half of 10%, which would be $500.
Which of the following statements is CORRECT regarding the Building Ordinance or Law endorsement to a Dwelling policy?
It creates a new coverage on the DP-1 policy.
Which of the following statements is NOT TRUE with regard to Coverage E: Additional Living Expenses under a DP-2 or DP-3 form?
It pays a percentage of the Coverage C limit.
Which of the following statements is TRUE regarding the DP-3 special form?
It provides open peril coverage on the structure and named peril coverage on the personal property.
Jason has his home covered by a Dwelling policy with Coverage C included. When he transports covered property temporarily off the premises, it is destroyed by fire. How much coverage does Jason have to cover his destroyed property?
Jason has 10% of the Coverage C amount to cover his destroyed personal property.
All of the following are excluded from coverage under the Personal Effects Floater, EXCEPT:
Luggage is not excluded
Max has his home covered under a DP-2 form. During a storm, a large oak tree in Max's yard splits in two and one side of the tree falls against the back wall and roof of the covered dwelling. Which of the following accurately describes the coverage that will apply to Max's loss?
Max will be covered for the damage to both the exterior of his dwelling and the interior of his dwelling. The "Falling Objects" peril specifically states that the falling object itself is NOT covered. Therefore, the tree would not be covered.
All of the following statements are TRUE regarding the Broad Theft coverage endorsement to a Dwelling policy, EXCEPT:
Off-premises coverage can be purchased by the named insured for a tenant's personal property.
Which of the following is NOT one of the three personal property floaters used as a stand-alone policy under Personal Inland Marine insurance?
Personal objects floater
Which of the following is the endorsement that may be attached to a Dwelling policy to increase the amount of insurance coverage necessary to keep pace with increasing market prices?
The "Automatic Increase in Insurance" endorsement is used to keep the coverage current as a result of inflation.
Which of the following Dwelling Insurance forms is also referred to as the "Dwelling Fire" form?
The DP-1 form is also referred to as the "Dwelling Fire" form.
Which of the following statements is TRUE regarding the DP-2 cause of loss form?
The DP-2 form, automatically includes the EC perils, V&MM coverage, and the broad form perils.
Which of the following Dwelling forms provides "open peril" coverage for dwellings and other structures?
The DP-3 special form
How much coverage is available for the theft of firearms under the Broad Theft endorsement to a Dwelling policy?
The Dwelling policy "Broad Theft endorsement" provides $2,500 for the theft of firearms.
Which of the following is an "other coverage" provided on a DP-1 form?
The Fire Department Service Charge is the only item in the answer choices that is included on the DP-1 form as an "other coverage".
Flora designs and makes custom dresses out of a small room at the back of the home she owns. She has the home covered by a Dwelling policy with the Permitted Incidental Occupancies endorsement attached. She has boxed up several dresses and stored them in the back room to be shipped out later when fire breaks out and burns them up. How much coverage will Flora's endorsed Dwelling policy provide?
The Permitted Incidental Occupancies endorsement to a Dwelling policy can provide up to $10,000 for the loss of stored merchandise.
Under the Personal Articles Floater, a loss is covered when it occurs:
The Personal Articles Floater covers covered property on a world-wide basis, except for fine arts.
Which of the following statements is TRUE regarding the Personal Effects Floater?
The Personal Effects Floater can be purchased either on a permanent basis for frequent travelers or for a single trip.
Tori owns a cabin in the Ozark Mountains that she rents to Vincent. Tori has the cabin covered under a DP-2 policy. One cold evening, Vincent started a large fire in the cabin's fireplace and left the room to start dinner in the kitchen. Vincent didn't realize that he forgot to open the chimney flue before starting the fire and by the time he came back into the living room, it was completely filled with smoke. Vincent immediately opened the doors and windows to "air-out" the cabin but when the smoke cleared, there was extensive soot damage to the walls, ceilings and furnishings in the room. Which of the following statements is true regarding how this claim will be handled?
The claim will be paid because the DP-2 extends the peril of "smoke" to cover smoke damage from a fireplace
Which of the following Dwelling insuring agreements would be included on a DP-3 form but not on a DP-1 form?
The coverage for "Additional Living Expenses" is NOT included on the DP-1.
The DP-1 basic form peril of "internal explosion" will cover which of the following losses?
The explosion of a furnace that the insured owns, inside the covered dwelling.
Which of the following losses would be covered under the standard Dwelling policy optional coverage Vandalism & Malicious Mischief (V&MM)?
The graffiti would be covered under the V&MM coverage.
Sam's home is located in a rural area and is covered by a standardized DP-2 Dwelling form with a $500 deductible form attached. He experiences a fire at his home and has to call the local volunteer fire department to extinguish the fire. He receives a bill from the fire department in the amount of $800. How much of the bill will Sam's DP-2 form cover?
The policy will provide $500 to pay for fire department charges incurred when the fire department is called to save or protect covered property from a peril insured against. This coverage is additional insurance and no deductible applies. PLEASE NOTE: This question is asking about the STANDARDIZED DP-2 form. If the state statutes in the state for which you are studying amends this amount, we will cover this amount in the course and in another question.
Which of the following losses would be covered by the EC peril of "Windstorm or Hail" under a Dwelling policy?
The roof is the only property that would be covered under the Dwelling EC peril of windstorm and hail.
The standardized Dwelling forms consider all eruptions of a volcano within a __________ period to be a single "occurrence".
The standard Dwelling forms consider all eruptions of a volcano that occur within a 72-hour period to be a single "occurrence".
Under the DP-3 special form, which of the following would be covered?
Theft of outside lighting attached to the dwelling. The special DP-3 form provides open peril coverage on the structures. This covers the light because it is attached to the building.
Under a standardized Dwelling form, a loss by a covered peril for Improvements, Alterations and Additions is covered for up to:
Under a standardized Dwelling form, a loss by a covered peril for Improvements, Alterations and Additions is covered for up to 10% of the Coverage C limit.
Under the special limits of liability for the "broad" or "limited" theft endorsement to a Dwelling policy, how much coverage is available for the theft of money?
Under the special limits of liability for the "broad" or "limited" theft endorsement to a Dwelling policy, $200 of coverage applies.
Which of the following statements is CORRECT regarding the coverage endorsement for grave markers under a Dwelling policy?
Up to $5,000 of coverage is provided for grave markers and mausoleums on the covered premises described in the policy.
When the "Building Ordinance or Law" endorsement is added to a DP-2 policy:
When the "Building Ordinance or Law" endorsement is added to a DP-2 policy, it increases coverage above the automatic 10% coverage already provided.
Under a standardized Dwelling policy, when an insurer opts to repair or replace the damaged property with like kind and quality, they must do so:
Within 30 days of receiving the insured's proof of loss.
