Dwelling Policies Flashcards
If Coverage C, personal property (or contents) coverage is written on a dwelling form, an extension of coverage may be used to provide worldwide personal property coverate for an amount up to: A. 25% of the Coverage C limit B. 50% of the Coverage C limit C. 40% of the Coverage C limit D. 10% of the Coverage C limit
Answer: D. 10% of the Coverage C limit
All of the following are true regarding the DP-2 broad form policy EXCEPT:
A. It contains the 80% co-insurance clause
B. Theft is a covered peril
C. It is a named peril form
D. It is ACV on the contents
Answer: B.
Theft is NOT a covered peril
On dwelling property forma, there is no coverage for vandalism if the dwelling has been vacant for more than: A. 30 days B. 45 days C. 60 days D. 10 days
Answer: C. 60 days
On the DP-1 basic form, all of the following are covered under the perils of extended coverage ExCEPT: A. Riot and civil commotion B. Vehicles C. Vandalism D. Aircraft
Answer: C. Vandalism
On a dwelling property form, Coverage B other structures, excludes all the following EXCEPT: A. Private garage rented to others B. Farm structures C. Manufacturing structures D. Commercial structures
Answer: A. Private garage rented to others
On a DP-1 basic dwelling fire form, water damage is covered if due to: A. Flood B. Leaking swimming pool C. Sewer backup D. Fire
Answer: D. Fire
The main difference between the various dwelling property forms is the: A. Coverage for personal liability B. Coverage for rental value C. Covered property perils D. Coverage for other structures
Answer: C. Covered property perils
Two dwelling fire policies are written on the same house. Company A has a limit of $300,000 and Company B has a limit of $100,000. If the insured suffers a $100,000 loss, how much will Company A pay? A. $100,000 B. $75,000 C. $50,000 D. $25,000
Answer: B. $75,000
Find the total amount of insurance ($400,000)
Company A has 3/4 of the total and Company B has 1/4
The broad and special dwelling forms provide two extensions of coverage not found on the basic form. What are they?
A. Debris removal and worldwide personal property coverages
B. Coverages for building collapse and for lawns, trees, and plants
C. Coverages for other structures and loss of rental value
D. Removal coverage and coverage for other structures
Answer: B
The DP-2 broad form automatically insures covered property against loss from any cause while being removed from a premises endangered by a peril insured against for no more than: A. 90 days B. 30 days C. 60 days D. 5 days
Answer: B. 30 days
An insured has a dwelling insured for $40,000 and contents insured for $25,000. A vandal cuts down his $500 tree in the middle of the night. How much will the policy pay? A. $200 B. $0 C. $300 D. $500
Answer: D. $500
