Chapter 4 - Dwelling Flashcards
Dwellings must be used principally for __________ dwelling purposes and cannot have more than __ dwelling units or more than __ roomers/boarders,
Residential
4
5
Which of the following is not eligible for the Dwelling Program?
A. Dwelling includes a piano school
B. Dwelling has 4 apartment units
C. Dwelling has 5 roomers
D. Dwelling is located on farm property
D. Dwelling is located on a farm property
What perils does the DP-1 (Basic Form) cover?
The insured perils are fire, lightning, and internal explosion.
Which of the following Dwelling forms pays for losses to the dwelling on an actual cash value basis?
A. DP-4
B. DP-3
C. DP-1
D. DP-2
C. DP-1
Which of the following Dwelling forms pays for losses to the dwelling on a replacement cost basis? Choose all that apply.
A. DP-4
B. DP-3
C. DP-1
D. DP-2
B. DP-3 & D. DP-2
Which losses are covered by the DP-2 Form? choose all that apply. A. Constant or repeated leakage of water B. Freezing of HVAC C. Damage by Burglars D. weight of Ice, snow or sleet
B. Freezing of HVAC, C. Damage by Burglars, & D. weight of Ice, snow or sleet
are all covered by DP-2.
A is not because only accidental discharge or overflow of water or steam is.
DP-2 Personal Property are paid on a ________ basis.
a. Actual Cash Value
b. Replacement Value
a. Actual Cash Value
What type of peril coverage is DP-3 (broad form)?
DP-3 (broad form) coverage is provided on a open perils basis, meaning all except exclusions are covered.
What losses does the DP-3 (broad form) specifically exclude under coverages A & B?
-Collapse
Freezing, thawing, or weight of water or ice on patios, fences, 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, or sleet to outdoor radio and TV antennas and aerials, trees, shrubs, plants, and lawns.
-Vandalism and malicious mischief, theft or attempted theft, and any ensuing loss if the dwelling has been vacant for more than 60 consecutive days immediately before a loss.
-Constant or repeated seepage or leakage of water or steam over a period of time from within a HVAC, or automatic fire protective sprinkler system, or household appliance – these systems and appliances do NOT include sumps, sump pumps, mold, fungus, or wet rot unless resulting from accidental discharge or overflow of water or steam and is hidden from view.
-Any of the following: wear and tear; deterioration; mechanical breakdown; smog, rust, or corrosion; smoke from agricultural smudging or industrial operations; pollution; settling, cracking, bulging, or expansion of foundation, walls, floors, pavement, or patios; and birds, vermin, rodents, insects, or domestic animals.
-Theft of property that is part of the dwelling or other structures is covered as long as the dwelling or other structures have not been vacant for more than 60 days.
-Theft of contents is still excluded unless coverage has been added by an endorsement.
DP-3 (Special Form) has what type of peril coverage on dwelling and other structures?
Open perils coverage
DP-3 (Special Form) has what type of peril coverage for personal property?
Named Perils
What Dwelling Policy form does this occurrence match?
A fire breaks out in the kitchen of the insured property. After proof of loss, the insurer pays the actual cash value for damages to the dwelling.
DP-1 (Basic Form)
What Dwelling Policy form does this occurrence match?
The insured property was damaged when someone drove into the garage. After proof of loss, the insurer pays the actual cash value for damages to the dwelling.
DP-1 (Basic Form) with Extended Coverage (EC).
What Dwelling Policy form does this occurrence match?
After an ice storm, the pool on the insured property was damaged. The insurer pays the claim on a replacement cost basis.
DP-3 (Special Form)
Which of the following losses would be covered under all Dwelling forms?
A. Damage caused by subsidence of land the dwelling is sitting on
B. Fire damage to building materials and supplies that are located on the insured premises
C. Damage caused by a sewer or drain backup
D. Collapse due to settling
B. Fire damage to building materials and supplies that are located on the insured premises
***Loss by fire is covered under all forms.
What Dwelling Policy form does this occurrence match?
While the insured property was unoccupied, it was burglarized. The insurer pays to replace the broken window the burglar used for entry, but not for the personal property stolen.
DP-2 (Broad Form)
What does Coverage A protect?
Dwelling & attached structures
Coverage E
Additional living expenses incurred when a covered loss makes the unit uninhabitable
What does Coverage B protect?
Other non-attached Structures
shed, fence, unattached garage, ect.
What does Coverage C protect?
Personal Property
What does Coverage D protect?
Dwelling Coverage
Fair Rental Value
What does Coverage E protect?
Dwelling Coverage
Additional Living Expenses
What does Coverage A apply to? More than one may apply.
- attached garage
- deck
- breezeway
- backyard
Coverage A applies to 1,2 & 3. It covers structures attached to the dwelling, but not land the dwelling is on.
What does Coverage B apply to? Select all that apply.
- Shed
- Fence
- Utility Line
- Tractor
Coverage B applies to 1, 2 & 3. Farm equipment is not covered.
**Coverage B covers structures NOT attached to dwelling, no coverage for structures rented to others
Property not included in Coverage C:
- Accounts, bank notes, coins, and currency
- Birds, animals, and fish
- Aircraft and watercraft other than rowboats or canoes
- Motor vehicles other than those used to service the described location or to assist the handicapped
- Hovercraft
- Data, including books of account, drawings, paper records, computers, and their equipment
- Credit cards, funds transfer cards, and other access devices
- Water or steam
- Grave markers
Coverage C applies to which persons?
a. Insured
b. Renter of Insured
c. Insured Relative
d. Insured & Resident Relative
d. Insured & Resident Relative
Coverage C applies to which persons?
a. Insured
b. Renter of Insured
c. Insured Relative
d. Insured & Resident Relative
d. Insured & Resident Relative
Is gold covered under coverage C?
No. Gold, silver, money, and alike things are not covered.
What coverage insures additional expenses?
Coverage E
hotel stay, pet boarding, eating out - due to peril that makes dwelling not fit for normal use
Coverage D
Fair rental value of that part of the described location that is rented to others if the rental unit is unfit for normal use
Do the dwelling forms include theft coverage?
No, an endorsement must be added if theft protection is wanted/needed.
Coverage A
Dwellings and structures attached to the dwelling
Coverage C
Personal property usual to the occupancy of a dwelling
Other Coverages - Debris Removal
The policy pays the insured’s reasonable expenses for the removal of debris of covered property if the property is damaged by an insured peril. Debris removal expense is included in the limit of insurance that applies to the damaged property.
Improvements, Alterations, and Additions
If the insured is a tenant, he or she may use up to 10% of the Coverage C limit of insurance for a covered loss to improvements, alterations, and additions made or acquired at the insured’s expense to that part of the described location only occupied by the named insured.
In the DP–1 form, coverage is included in the limit of insurance; in the DP–2 and DP–3 forms, it’s additional insurance.
Worldwide Coverage
The insured may use up to 10% of the Coverage C limit of liability for a covered loss to property insured under Coverage C while it’s located anywhere in the world. This coverage does NOT apply to rowboats, canoes, or property owned by guests or servants. It is included in the Coverage C limit of liability.
Reasonable Repairs
If covered property is damaged by an insured peril, the policy will pay the reasonable costs incurred by the named insured for necessary measures taken to protect covered property from further damage. This is not additional insurance and coverage does not increase the limit of insurance that applies to the covered property.
Property Removed
If property is being removed from the described location to protect it because it is endangered by a covered peril, coverage is provided for direct loss by any peril while removed. Under the DP–1 form, coverage is provided for 5 days while removed; under the DP–2 and DP–3 forms, coverage is provided for 30 days while removed.
This coverage does not increase the limit of insurance that applies to the property being removed.
Trees, Shrubs, and Other Plants
Under the DP–2 and DP–3 forms, coverage is provided for trees, shrubs, plants or lawns on the described location for loss caused by the following perils: fire or lightning; explosion; riot or civil commotion; aircraft; vehicles not owned by the named insured or by a resident of the described location; vandalism or malicious mischief; and damage caused during a burglary or an attempted burglary. This coverage is not included in the DP–1 form.
Damage to trees, shrubs, plants, or lawns caused by the following perils are not covered: wind; hail; weight of snow, ice or sleet; and loss by theft. The limit of insurance for this coverage is up to 5% of the Coverage A limit, with a maximum of $500 applying to any one tree, shrub, or plant.
This is additional coverage.
