Dwelling Insurance

Question 0

Broad form

Answer 0

Named perils

- DP-2

Question 1

Basic form

Answer 1

Named peril

- DP-1

Question 2

Special form

Answer 2

Open peril

- DP-3

Question 3

DP- 1 coverages (3)

Answer 3

Fire, lightning, internal explosion

Question 4

Extended coverage perils for DP-1 (9)

Answer 4

Riot, explosion, vehicles, civil commotion, smoke, hail, aircraft, windstorm, volcanic eruption

Vandalism and malicious mischief available for separate premium

Question 5

DP- 2 covered perils (6)

Answer 5

All coverages covered by DP-1 along with:
Damage due to burglars, weight of ice snow or sleet, discharge of water or steam, falling objects, sudden tearing cracking or burning

Question 6

DP-3 policy form

Answer 6

Open peril coverage

Insurers against all direct physical damage to property unless specifically excluded

Question 7

Eligibility for dwelling insurance

Answer 7

Residential structures with 1-4 units

Property does not need to be owner occupied
Farms are not eligible

Question 8

How are coverages A-E added to each policy

Answer 8

Added by endorsement to DP-1

Included on the DP-2 and 3

Question 9

Coverage A: Dwelling

Answer 9

Valued policy loss settlement
Coverage includes:
Dwelling, structures attached to the dwelling, supplies or materials used for construction or repair, outdoor equipment used to service the premises

Question 10

Coverage B: Other Structures

Answer 10

• Policy limit 10% of coverage A
• Buildings on the premises not attached to dwelling
• Building can’t be used for commercial, farming, or manufacturing purposes

Question 11

Coverage C: Personal Property

Answer 11

Policy limit: declared amount, selected by customer
- Property of tenants NOT covered

personal property off premises- 10% of coverage C limits

Question 12

Coverage D: Fair Rental Value

Answer 12

• Policy limit 20% of coverage A
• Reimburse lost rental revenue after covered loss
• Civil authority- 2 weeks

Question 13

Coverage E: Additional living expenses

Answer 13

• 20% of coverage A
• Additional living expenses after covered loss
• Must be owner occupied
• Civil authority- 2 weeks

Question 14

What are some additional coverages paid in addition to all other limits of liability

Answer 14

Debris removal, reasonable repairs, property removed, fire department service charge
Improvements, alterations, additions
- 10% of Coverage C available
- tenants making alterations to dwelling

Question 15

Additional coverages for DP-2&3 only

Answer 15

Collapse
Glass or safety glazing material
Ordinance or law
Trees and shrubs

Question 16

Common Exclusions for dwelling insurance (7)

Answer 16

Property insured elsewhere, property rented to others, animals birds fish ect., property of renters, aircraft, motorized vehicles, watercraft

Question 17

Coverage L: Personal liability

Answer 17

Personal liability

• Bodily injury and property damage
• insured must be legally liable
• Supplementary payments
• Comparable to HO section 2: coverage E

Question 18

Coverage M: medical payments to others

Answer 18

• Reasonable medical and funeral expenses
• 3 year limit on claims
• Insured not required to be liable
• Excludes insured and family members
• Comparable to HO Section II: coverage F

Question 19

Other endorsements for dwelling insurance

Answer 19

• Automatic increase in insurance
• Broad form or limited form theft coverage
• Dwelling under construction