Chapter 4

Question 1

Texas Dwelling Policy (TDP)

Answer 1

Property Only

owned the property, but do not have to occupy the property

Individually owned houses, townhouses, garages, apartments, stationary mobile homes etc.

Dwellings cannot use 500+ feet for business operations or more then 50% of the dwelling used for business.

Cannot cover houseboats, boat docks, boathouses, condominiums, or dwellings under construction.

Question 2

3 different forms for Texas Dwelling Policy

Answer 2

Basic (DP1)
Broad (DP2)
Special (DP3)

Question 3

Different coverages (A, B, C, D, E)

Answer 3

A - Dwelling (ACV)

B - Other Structures (10% of coverage A)

C - Personal Property (10% of Coverage C/ minimum loss $1,000)

D - Fair Rental Value (Maximum limit is 20% of coverage A)

E - Additional Living Expenses (Indirect loss)

Question 4

Extension coverage for TDP

Answer 4

Debris Removal

Improvements/ repairs/ alterations (10% coverage C)

Trees/ Shrubs/ Plants/ Lawns ($500 for each plant/ maximum of 5%of coverage A)

Worldwide Coverage (10% of coverage C)

Question 5

General Exclusion

Answer 5

Flood

War and Nuclear Hazard

Theft

Electrical appliances

Settling or earth movement

Animals

Boats

Money

Question 6

Conditions

Answer 6

Must provide proof of loss within 91 days

Acknowledge claim, investigate claim, pay claim

Insurer will replace/ repair/ restore property

Residential Community Property (Divorce)

Liquidated Demand (Fire Losses)

Concealment

Fraud

Insurable Interest (ownership)

Policy period (12:01 AM)

Vacancy (60 days no coverage)