Chapter 3 Types of Property Policies

Question 1

What do they have under a home policy that is missing from dwelling policies

Answer 1

1. Coverage for content
2. Coverage for liability

Question 2

Why would a renter not get a home policy, and renters instead?

Answer 2

Because if your not living on the property then the content is not your own

Question 3

What is a Dwelling policy purchased for?

Answer 3

• For 1-4 residential Units/ or 1-5 roomers
• For Owner or tenant occupied
• Not for Farm Property
• Can insure dwelling under construction
• For mobile homes perm located on a lot
• Incidental Business (DW) no more than 2 pp working

Question 4

What is a ISO?

Answer 4

Insurance Service Organization

Question 5

What is the Structure of a DP ISO?

Answer 5

1. Agreement
2. Definitions
3. Deductibles
4. Coverages and other Coverages
   A)Dwelling, all attached property
   (B)Other structures/Not attached
   (C) content
   (D)Indirect Cov.
5. Perils Insured Against
6. General Exclusions
7. Conditions

Question 6

Types of Dwelling Forms?

Answer 6

Basic DP-1
Broad DP-2
Special DP-3

Question 7

What is covered under a DP 1 (Basic Form)

Answer 7

Fire, Lightning, Internal explosion

Question 8

What gets paid out in a DP 1

Answer 8

Losses paid on actual cash value

Question 9

What is DP 1 Basic Form Option 1?
(Extended Coverage Endorsements)

Answer 9

Windstorm/Hail, Explosion, Smoke, Aircraft/Vehicles, Riot/Civil Commotion, Volcanic Eruption (require additional prem as a package)

Question 10

Can you only purchases Option 2 for DP -1 Basic Form on its own?

Answer 10

No, you have to buy Option 1 first then you can but Option 2

Question 11

What is covered under DP-1Basic Form Option 2

Answer 11

Windstorm/Hail, Explosion, Smoke, Aircraft/Vehicles, Riot/Civil Commotion, Volcanic Eruption AND Vandalism& Malicious mischief (require additional prem as a package)

Question 12

What does WHARVES?

Answer 12

Windstorm
Hail
Aircraft/vehicle
Riot/Civil commotion
Volcanic eruption
Smoke

Question 13

What does W.C.Shaver stand for

Answer 13

Windstorm
Civil commotion
Smoke
Hail
Aircraft/vehicles
Volcano
Explosion
Riot

Question 14

For Broad Form coverage it is paid out as….

Answer 14

Losses on replacement cost basis as long as insured maintains a minimum amount of coverage equal to 80% of the dwelling replacement cost.

Question 15

Broad Form covorages are…

Answer 15

Burglary, Falling Objects, Artificially generated electricity, Weight of ice and snow or sleet, accidental discharge or overflow, tearing apart crackling, burning or bulging, freezing of plumbing.

Question 16

Additional Covorages in Bread Form are…

Answer 16

Lawns, Trees shrubs and plants ($500 each/Max 5% of dwelling), Glass Breakage part of the building/no coverage if vacant over 60 days, Collapse (Broad and Special) Broad form perils or specifically named perils, Excludes settling, cracking, shrinkage, bulging or expansion

Question 17

For Broad Form what are Covered Perils?

Answer 17

B.B BICE-Golf
Bursting of heating systems
Burglary damage
Breaking of water heaters
Ice, Snow, or Sleet weight
Collapse of building or part of a building.
Electrical damage
Glass breakage
Objects falling from outside
Leakage of water or steam damage
Freezing of plumbing

Question 18

What does B.B BICE-GOLF

Answer 18

Broad Form Covered Perils
Bursting of heating systems
Burglary damage
Breaking of water heaters
Ice, Snow, or Sleet weight
Collapse of building or part of a building.
Electrical damage
Glass breakage
Objects falling from outside
Leakage of water or steam damage
Freezing of plumbing

Question 19

DP-2 Broad Theft Coverages