Chapter 4 Flashcards
Coverage A
Dwelling (attached and construction materials)
Coverage B
Other Structures
Coverage C
Personal Property
Coverage D
Fair Rental Value
Coverage E
Additional Living Expenses – DP 2&3 ONLY
vandalism or malicious mischief (VMM)
if purchased, must appear on the declarations. If VMM is purchased, it excludes loss for vandalism in vacant buildings.
Losses to the dwelling, other structures, and contents are paid on an actual cash value basis.
Damage by Burglars
includes damage to the covered property caused by the burglar, but not theft of property
Vehicle Peril
does not include loss to a fence, driveway, or walkway caused by a vehicle owned or operated by the insured
Smoke Peril
does not include loss caused by smoke from agricultural smudging or industrial operations
DP–3 (Special Form)
Coverage for the dwelling and other structures is provided on an open perils basis, meaning coverage is provided for all causes of loss except for those perils specifically excluded.
DP–3 specifically excludes the following losses under Coverages A and B
Collapse, Freezing, thawing, weight of water or ice on patios, fences, swimming pools, foundations, piers, docks, retaining walls, etc., Theft of property not part of a covered building or structure, Theft in or to a dwelling or structure under construction, Wind, hail, ice, snow, sleet to outdoor radio and TV antennas and trees, shrubs, plants, lawns, Vandalim and malicious mischief, theft or attempted theft, and any ensuing loss if the dwelling has been vacant 60+ days, constant or repeated seepage or leakage of water or steam over time from plumbing or appliance, wear and tear.
Open Peril Basis
DP-3 Special Form
Coverage B Limit of Insurance
10% of Coverage A limit, automatically provided. DP-1 the limit does not increase the amount of insurance provided. DP-2&3 forms provide additional insurance.
DP-1 EC Perils (WC SHAVER)
Windstorm, Civil Commotion, Smoke, Hail, Aircraft/vehicles, Volcanic Eruption, Explosion, Riot
DP-2 Broad Form - Covered Perils
B.B.BICE & GOLF
Bursting of heating systms. Burglary damage, Broken water heater, Ice, snow, sleet weight, Collapse, Electrical damage.
Glass breakage, Objects falling, Leakage, Freezing of plumbing.
Limits of Insurance on DP-2&3
Coverage A- Limit of Liability
Coverage B- 10% of Coverage A (additional)
Coverage C- Insured’s choice
Coverage D- 20% of Coverage A (additional)
Coverage E- 20% of Coverage A (additional)
DP-1 Basic Form Limit of Insurance
Coverage A- Limit of Liability
Coverage B- 10% of Coverage A (not additional)
Coverage C- Insured’s choice
Coverage D- 20% of Coverage A (not additional)
Coverage E- None
Other Coverages
Debris Removal Improvements, Alterations, Additions Worldwide Coverage Reasonable Repairs Property Removed Trees, Shrubs, and Plants/Lawns Fire Department
Property Removed
5 days for DP1 30 days for DP2&3
Trees, Shrubs, Other Plants
No DP1
5% of Coverage A
$500 max per tree
No coverage for wind, hail, snow
Ordinance or Law
Not DP1
10% of Coverage A
Brings up to code
Debris Removal
Reasonable Expenses, not additional
Collapse
Must be collapse by settling; can’t be because of decay or insects
Improvements, Alterations, Additions
10% of Coverage C for tenant upgrades
Reasonable Repairs
Example: Tarp to protect from further damage
Fire Dept Service Charge
$500
Glass
Safety glazing material and storm windows and doors
Worldwide Coverage of Personal Property
10% of Coverage C
