Dwelling Policies

Question 1

What is a D.P. 1?

Question 2

What is a D.P. 2?

Answer 2

BROAD FORM 1-4 Units

Question 3

What is a D.P. 3?

Answer 3

SPECIAL FORM - Exactly like D.P.2 except all risk on dwelling and other structures ($15,000 minimum Coverage A)

Question 4

What are the general exclusions for dwelling policies?

Answer 4

P - Power failure from utility service occurring outside premises
O -Ordinance or law requiring demolition of partly damaged property, cost of demolition, cost to rebuild
to new requirements.
W -Water rising, flood, backing of sewers
E - Earth movement other than catastrophic ground cover collapse (sinkhole)
R - Rebellion, revolution, insurrection, war, nuclear

Question 5

Basic Form insured’s building damaged when cargo falls from aircraft. Basic Form will:
A. Not cover - needs Broad Form to cover falling objects
B. Cover damage by aircraft or anything falling off of or out of it
C. Cover only by falling object endorsement
D. This loss can not be covered.

Answer 5

B. Cover damage by aircraft or anything falling off of or out of it

Question 6

Under DPs, vandalism is not covered after building has been vacant for how many days?
A. 30
B. 60
C. 90
D. 120

Answer 6

B. 60

Question 7

Insured has DP-1 with vandalism coverage. Premises vacant 20 days when vandals cause $1,000
damage. Ignoring deductible recovery is:
A. Nothing - coverage suspended
B. $850
C. $1,000
D. $250

Answer 7

C. $1,000

Question 8

Which is not covered under DP-1?
A. Additional living expenses
B. Other structures
C. Fair rental value
D. Debris removal

Answer 8

A. Additional living expenses

Question 9

Under DP-2, which is for an additional amount of insurance?
A. Fair rental value
B. Personal property off premises
C. Debris removal
D. Repairs to prevent further damage

Answer 9

A. Fair rental value

Question 10

Bob has DP-2. Coverage A limit is $50,000. Bob has separate garage he values at $20,000. Dwelling
and garage both destroyed. How paid?
A. $70,000
B. $55,000
C. $50,000
D. $60,000

Answer 10

B. $55,000

Question 11

Fred has DP-3. Which is covered?
A. Lamp falls off table
B. Hot plate damages table
C. Paint spills on sofa
D. thief steals a/c compressor

Answer 11

D. thief steals a/c compressor

Question 12

Sue has DP-3. She is on ladder painting, starts to fall and slings paint everywhere. Ruins antique
table; ruins wall-to-wall carpet; completely paints pet poodle. DP-3 covers:
A. Table, carpet and poodle
B. Carpet only
C. Table and Carpet
D. Table and poodle

Answer 12

B. Carpet only

Question 13

Broad Theft and Limited Theft both cover which:
A. owner occupied dwellings
B. $2,500 for firearms
C. Non-Owner occupied dwellings
D. All of the above

Answer 13

B. $2,500 for firearms

Question 14

Insured’s dwelling is insured under DP-3 in amount of $100,000. The structure is destroyed
completely by a fire. At the time of loss, it is discovered that dwelling had depreciated to $85,000.
Insured’s policy will pay:
A. $ 85,000
B. $100,000
C. Actual cash value of damage
D. Replacement cost less depreciation

Answer 14

B. $100,000