Dwelling / Homeowner Policies Flashcards
What is a DP1 Policy?
The most basic version with the most basic coverage of all the rental property options.
What type of risk insurance is DP1?
Named Risk Insurance
What is named risk insurance?
Only covers perils that are specifically listed or named in the policy itself.
What are some common DP1 Named Perils?
Fire/Lightning, Internal/External Explosion, Riot & Civil Commotion, Smoke, Aircraft, Vehicles, Volcanic Eruption, Vandalism & Malicious Mischief
What valuation is DP1 based upon?
Actual Cash Value
What is a DP2 Policy?
The average amount of protection.
What is DP2 often referred to?
The dwelling fire form 2
What type of risk insurance is DP2?
Named Risk Insurance
What are some common DP2 Named Perils?
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.
What valuation is DP2 based upon?
Replacement Cost
What is a coverage that is often included in DP2 insurance?
Loss of Rents - Provides the insured with continued rental income while home is being repaired due to damage from a covered peril.
Who is DP2 good for?
Landlords
What is a DP3 Policy?
Rental Home Insurance Policy
What is DP3 best suited for?
Rental Properties / Non-owner occupied homes
What type of risk insurance is DP3?
All Risk Insurance
What is the difference regarding perils for DP3 vs DP2/DP1?
DP3 is an open peril policy and DP2/DP1 are named peril policies.
What valuation is DP3 based upon?
Replacement Cost
True or False: Loss of rents are NOT included in DP3?
False - loss of rents is included.
What is a DP3 policy similar to?
A standard home insurance policy.
What is the primary difference between dwelling fire insurance and home insurance?
Loss of use and Loss of Rents
What is key part of a DP3 policy?
Loss of rents
What does loss of rents cover?
Provides the insured with continued rental income while home is being repaired due to damage from a covered peril.
Where is loss of use insurance primarily used?
Home owner insurance policies where occupied.
What type of form is HO-2?
Broad Form - Think of this as the basic policy.
What type of form is HO-3?
Special Form - Think of this as a upgrade of HO-2
What type of form is HO-4?
Contents Broad Form - This is for renters to cover personal property.
What type of form is HO-5?
Comprehensive Form - Covers on an open peril basis. Think of this as the best possible option.
What type of form is HO-6?
Unit Owners Form - This is for owners of a condominium or a cooperative unit.
What type of form is HO-8?
Modified Coverage Form - This is best for owner-occupied older homes.
What does HO-2 cover?
Named perils that are specifically listed on the policy.
What does HO-3 cover?
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.
What does HO-4 cover?
The contents broad or tenants form cover personal property against the same perils as HO-2 or HO-3 with liability coverage.
What does HO-5 cover?
Covers the dwelling and contents on an open peril basis. As long as the cause of loss is not excluded it will provide coverage.
What does HO-6 cover?
Covers a condo or cooperative unit provided that the unit is primarily used for residence.
What does HO-8 cover?
Property whose replacement cost exceeds the property market value and homeowner wishes to recover the actual cash value of the home.
What is a characteristic of a DP policy?
It is for renters typically where building is tenant occupied.
What is a characteristic of a HO policy?
It is for owner occupied homes.
