Chapter 4

Question 1

Coverage A

Answer 1

Dwelling (attached and construction materials)

Question 2

Coverage B

Answer 2

Other Structures

Question 3

Coverage C

Answer 3

Personal Property

Question 4

Coverage D

Answer 4

Fair Rental Value

Question 5

Coverage E

Answer 5

Additional Living Expenses – DP 2&3 ONLY

Question 6

vandalism or malicious mischief (VMM)

Answer 6

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.

Question 7

Damage by Burglars

Answer 7

includes damage to the covered property caused by the burglar, but not theft of property

Question 8

Vehicle Peril

Answer 8

does not include loss to a fence, driveway, or walkway caused by a vehicle owned or operated by the insured

Question 9

Smoke Peril

Answer 9

does not include loss caused by smoke from agricultural smudging or industrial operations

Question 10

DP–3 (Special Form)

Answer 10

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.

Question 11

DP–3 specifically excludes the following losses under Coverages A and B

Answer 11

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.

Question 12

Open Peril Basis

Answer 12

DP-3 Special Form

Question 13

Coverage B Limit of Insurance

Answer 13

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.

Question 14

DP-1 EC Perils (WC SHAVER)

Answer 14

Windstorm, Civil Commotion, Smoke, Hail, Aircraft/vehicles, Volcanic Eruption, Explosion, Riot

Question 15

DP-2 Broad Form - Covered Perils

B.B.BICE & GOLF

Answer 15

Bursting of heating systms. Burglary damage, Broken water heater, Ice, snow, sleet weight, Collapse, Electrical damage.
Glass breakage, Objects falling, Leakage, Freezing of plumbing.

Question 16

Limits of Insurance on DP-2&3

Answer 16

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)

Question 17

DP-1 Basic Form Limit of Insurance

Answer 17

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

Question 18

Other Coverages

Answer 18

Debris Removal
Improvements, Alterations, Additions
Worldwide Coverage
Reasonable Repairs
Property Removed 
Trees, Shrubs, and Plants/Lawns
Fire Department

Question 19

Property Removed

Answer 19

5 days for DP1 30 days for DP2&3

Question 20

Trees, Shrubs, Other Plants

Answer 20

No DP1
5% of Coverage A
$500 max per tree
No coverage for wind, hail, snow

Question 21

Ordinance or Law

Answer 21

Not DP1
10% of Coverage A
Brings up to code

Question 22

Debris Removal

Answer 22

Reasonable Expenses, not additional

Question 23

Collapse

Answer 23

Must be collapse by settling; can’t be because of decay or insects

Question 24

Improvements, Alterations, Additions

Answer 24

10% of Coverage C for tenant upgrades

Question 25

Reasonable Repairs

Answer 25

Example: Tarp to protect from further damage

Question 26

Fire Dept Service Charge

Answer 26

$500

Question 27

Glass

Answer 27

Safety glazing material and storm windows and doors

Question 28

Worldwide Coverage of Personal Property

Answer 28

10% of Coverage C