Dwelling / Homeowner Policies

Question 1

What is a DP1 Policy?

Answer 1

The most basic version with the most basic coverage of all the rental property options.

Question 2

What type of risk insurance is DP1?

Answer 2

Named Risk Insurance

Question 3

What is named risk insurance?

Answer 3

Only covers perils that are specifically listed or named in the policy itself.

Question 4

What are some common DP1 Named Perils?

Answer 4

Fire/Lightning, Internal/External Explosion, Riot & Civil Commotion, Smoke, Aircraft, Vehicles, Volcanic Eruption, Vandalism & Malicious Mischief

Question 5

What valuation is DP1 based upon?

Answer 5

Actual Cash Value

Question 6

What is a DP2 Policy?

Answer 6

The average amount of protection.

Question 7

What is DP2 often referred to?

Answer 7

The dwelling fire form 2

Question 8

What type of risk insurance is DP2?

Answer 8

Named Risk Insurance

Question 9

What are some common DP2 Named Perils?

Answer 9

Fire/Lightning, Internal/External Explosion, Riot & Civil Commotion, Smoke, Aircraft, Vehicles, Volcanic Eruption, Vandalism & Malicious Mischief, glass breakage, Weight of Ice & Snow, Freezing of Pipes, Electrical Damage, Collapse, Falling Objects, Accidental Discharge or Overflow of Water or Steam.

Question 10

What valuation is DP2 based upon?

Answer 10

Replacement Cost

Question 11

What is a coverage that is often included in DP2 insurance?

Answer 11

Loss of Rents - Provides the insured with continued rental income while home is being repaired due to damage from a covered peril.

Question 12

Who is DP2 good for?

Answer 12

Landlords

Question 13

What is a DP3 Policy?

Answer 13

Rental Home Insurance Policy

Question 14

What is DP3 best suited for?

Answer 14

Rental Properties / Non-owner occupied homes

Question 15

What type of risk insurance is DP3?

Answer 15

All Risk Insurance

Question 16

What is the difference regarding perils for DP3 vs DP2/DP1?

Answer 16

DP3 is an open peril policy and DP2/DP1 are named peril policies.

Question 17

What valuation is DP3 based upon?

Answer 17

Replacement Cost

Question 18

True or False: Loss of rents are NOT included in DP3?

Answer 18

False - loss of rents is included.

Question 19

What is a DP3 policy similar to?

Answer 19

A standard home insurance policy.

Question 20

What is the primary difference between dwelling fire insurance and home insurance?

Answer 20

Loss of use and Loss of Rents

Question 21

What is key part of a DP3 policy?

Answer 21

Loss of rents

Question 22

What does loss of rents cover?

Answer 22

Provides the insured with continued rental income while home is being repaired due to damage from a covered peril.

Question 23

Where is loss of use insurance primarily used?

Answer 23

Home owner insurance policies where occupied.

Question 24

What type of form is HO-2?

Answer 24

Broad Form - Think of this as the basic policy.

Question 25

What type of form is HO-3?

Answer 25

Special Form - Think of this as a upgrade of HO-2

Question 26

What type of form is HO-4?

Answer 26

Contents Broad Form - This is for renters to cover personal property.

Question 27

What type of form is HO-5?

Answer 27

Comprehensive Form - Covers on an open peril basis. Think of this as the best possible option.

Question 28

What type of form is HO-6?

Answer 28

Unit Owners Form - This is for owners of a condominium or a cooperative unit.

Question 29

What type of form is HO-8?

Answer 29

Modified Coverage Form - This is best for owner-occupied older homes.

Question 30

What does HO-2 cover?

Answer 30

Named perils that are specifically listed on the policy.

Question 31

What does HO-3 cover?

Answer 31

Provides coverage for all losses unless specifically excluded. - General exclusions include ordinance or law, earth movement, flood and surface water, power failure, neglect and intentional acts.

Question 32

What does HO-4 cover?

Answer 32

The contents broad or tenants form cover personal property against the same perils as HO-2 or HO-3 with liability coverage.

Question 33

What does HO-5 cover?

Answer 33

Covers the dwelling and contents on an open peril basis. As long as the cause of loss is not excluded it will provide coverage.

Question 34

What does HO-6 cover?

Answer 34

Covers a condo or cooperative unit provided that the unit is primarily used for residence.

Question 35

What does HO-8 cover?

Answer 35

Property whose replacement cost exceeds the property market value and homeowner wishes to recover the actual cash value of the home.

Question 36

What is a characteristic of a DP policy?

Answer 36

It is for renters typically where building is tenant occupied.

Question 37

What is a characteristic of a HO policy?

Answer 37

It is for owner occupied homes.