Ch. 3 - Dwelling Policy FLASH CARDS
What are some of the exclusions found in all 3 dwelling forms?
Earth movement, water damage, power failure, neglect, war, nuclear hazard, intentional loss, freezing of plumbing, ordinance or law, and government action.
Under what conditions can broad theft coverage be added to a dwelling policy?
If the insured is the owner-occupant of the dwelling.
Which dwelling form provides open peril coverage on the building?
DP-3 (Special)
What are extended coverage perils on a basic Dwelling policy?
Windstorm or hail, explosion, smoke, aircraft and vehicles, riot or civil commotion, volcanic eruption, and vandalism and malicious mischief
What are the 5 coverages of dwelling policies?
Coverage A - Dwelling Coverage B - Other Structures Coverage C - Personal Property Coverage D - Fair Rental Value Coverage E - Additional Living Expenses
What is the maximum number of units in residential dwellings insurable by a Dwelling Policy?
Up to 4 units
An insured’s house becomes uninhabitable due to damage by a fire. As a result, the insured has to rent an apartment until repairs are made. Which type of coverage under the dwelling policy will pay for the expense of renting the apartment?
Coverage E - Additional Living Expenses
In dwelling policies, within how many years of a loss may an insured bring a lawsuit against the insurer?
2 years
Which dwelling form is called the Broad Form?
DP-2
A basic dwelling policy automatically provides coverage against what?
Fire, lightning, and internal explosion
When will damage to the interior of the building be covered under the falling objects peril in the broad form of the dwelling policy?
Only if the interior damage is a direct result of exterior damage from a falling object.
In dwelling policies, any volcanic activity will be considered part of one occurrence if it all happens within how many hours?
72 hours
DP-3 (Special) is an open-peril form. What does that mean?
All perils are insured unless specifically excluded.
If volcanic eruptions happen within 48 hours, and each contributes to property damage, how many deductibles will apply in the dwelling policy?
1 deductible (all instances of volcanic eruptions that occur within a 72-hour period are considered 1 occurrence)
What do dwelling policies insure?
Dwelling only, contents only, or both dwelling and contents
In dwelling policies, what is the purpose of the automatic increase in insurance endorsement that increases the amount of insurance by an annual percentage?
To offset the effects of inflation
Which dwelling coverage form(s) will pay for the replacement cost of a dwelling?
DP-2 (Broad) and DP-3 (Special)
Which dwelling policy coverage will insure a garage not attached to the primary insured dwelling?
Coverage B - Other Structures
Which of the 3 DP forms provides the most limited coverage?
DP-1 (Basic)
Replacement cost coverage is provided in both the board and special form dwelling policies when the amount of insurance on the dwelling is what percentage?
At least 80% of the replacement cost
Which dwelling policy coverage will provide protection for contents damaged by fire in an insured dwelling?
Coverage C - Personal Property
What are the 3 types of coverage available in dwelling policies?
Basic, board, and special
If any insured is in the process of moving to a new location, his personal property coverage under the dwelling policy will apply on a pro rata basis at both locations for how long?
30 days
A gas stove exploding in the dwelling is an example of which named peril?
Internal explosion
Under Cover C - Personal Property in the dwelling policy, when will a guest’s property be covered?
Only when the property is at the insured location
