DWELLING INSURANCE Flashcards
What are the two key differences between dwelling policies and homeowners policies?
- ) the dwelling policy provides more limited property coverage than the homeowners policy
- The unendorsed dwelling policy provides property coverage only, while the homeowners policy provides a package of property and liability coverages.
What is a dwelling policy?
The dwelling policy provides protection for individuals and families against loss to their dwelling and personal property.
What are the three separate dwelling policy forms?
The basic form, the broad form, and the special form.
To be covered under a dwelling policy, a dwelling may have up to how many boarders and apartments?
Up to five boarders and four apartments
Does a dwelling need to be occupied by an owner to be eligible for a dwelling policy?
No.
Can a dwelling be eligible for a dwelling policy if it is under construction?
Yes.
Can a mobile home be covered under a dwelling policy?
Yes, but the mobile home must meet certain qualifications, such as it must be permanently located. Mobile homes may only be covered under the basic form.
What stipulations are there for an incidental business or professional occupancy building that is covered under a dwelling policy?
These operations must be conducted by the insured, provide service rather than sales, and involve no more than two people working on the premises at any one time. Example: beauty parlors, photo studios, professional offices
Who does the dwelling policy cover?
The named insured and the insureds spouse as long as the spouse lives in the same household as the insured.
What is the DP-1?
The basic dwelling form
What four coverages does the DP-1 have?
Coverage A - dwelling
Coverage B - other structures
Coverage C - personal property
Coverage D - fair rental value
What is Coverage A?
Dwelling
What is Coverage B?
Other structures
What is Coverage C?
Personal property
What is Coverage D?
Fair rental value
What does Coverage A - dwelling cover?
Covers the dwelling, structures attached to the dwelling, materials and supplies for use in the construction or repair of the dwelling, or other structures at the location, and building or outdoor equipment used to service the premises.
What does Coverage B - other structures cover?
Insured buildings on the premises that are separated from the dwelling by a clear space or connected only by a fence, utility line, or similar connection. The building may not be used for commercial, manufacturing, or farming purposes.
What does Coverage C - personal property cover?
Covers the insureds personal property that is at the described location and is usual to the dwelling occupancy. Personal property belonging to the insureds guests of servants may be covered at the insureds request.
What is not covered under coverage C (personal property)?
- Money, securities, manuscripts, bullion, currency, accounts, deeds, and evidences of debt
- Bank notes, coins, gold other than goldware, letters of credit, medals, personal records, platinum, silver other than silverware, tickets, and stamps
- Books of account, drawings and other paper records, electronic data processing tapes, wires, records, discs, and other software media
- Credit cards and fund transfer cards
- Animals birds and fish
- Aircraft
- Motor vehicles, other than motorized equipment used to maintain the premises
- Boats, other than rowboats and canoes
- Hovercraft and parts
- Water or steam
- Grave markers
- Electronic fund transfer cards or access devices used to deposit, withdraw, or transfer funds
- Script, stored value cards, and smart cars
- Data stored in computers and related equipment
What is covered under Coverage D (fair rental value)?
Coverage D is available if a covered property loss to the dwelling or other structure makes the building inhabitable and the insured cannot collect the rent he would have been able to receive if the loss had not occurred. 20% of the insurance on the dwelling is available for this coverage.
What are the only perils covered automatically under the basic form?
Fire, lightning, and internal explosion.
What is an internal explosion?
An explosion that occurs in a covered building or in a building containing covered personal property. Typical losses covered would include the explosion of a furnace, stove, or hot water heater.