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
