Dwelling Policy Flashcards
To be eligible for the dwelling property program,
dwellings must be used principally for
residential purposes, cannot contain more than 4 dwelling units, and can have no more than 5
roomers or boarders.
DP–1 Basic Form
perils are fire or lightning and internal explosion. If an additional premium
is paid for Extended Coverage (EC), the following perils are also included: windstorm or hail,
explosion, riot or civil commotion, aircraft, vehicles, smoke, and volcanic eruption. The peril of
vandalism or malicious mischief (VMM) may also be included with the payment of an additional
premium.
Losses to the DP–1 dwelling, other structures, and contents are paid
on an actual cash value
basis to the insured.
DP–2 Broad Form perils
are the DP–1 perils, the EC perils, VMM, and the following: damage
by burglars, falling objects, weight of ice, snow, or sleet, and accidental discharge or overflow of
water or steam.
DP–3 Special Form covers
the dwelling and other structures on an open perils basis, except
for the perils specifically excluded.
Coverage A applies
to the dwelling described in the declarations, used principally for residential
purposes, including structures attached to the dwelling, such as an attached garage, carport,
breezeway or deck.
The Coverage A limit of insurance
appears on the declarations as a specific limit. It is chosen
by the named insured at the time coverage is applied for and should represent the dwelling’s
replacement value.
Coverage B
applies to other structures on the described location if they are separated or detached
from the dwelling by clear space, a fence, or a utility line.
Coverage B limit of insurance
is up to 10% of the Coverage A limit and is automatically
provided under each of the dwelling forms.
Coverage C
to household and personal property usual to the occupancy as a dwelling if it
is owned by the insured or by members of the insured’s family who reside with the insured
Coverage D
provides insurance for indirect losses that occur as a result of direct losses to
property insured under Coverages A, B, or C that are covered by the policy
Coverage D limit of insurance
is up to 20% of the Coverage A limit and is automatically
provided under each of the dwelling forms.
Under the DP–1, the Coverage B limit does not increase the amount of insurance; under the
DP–2 and DP–3 forms, this limit is additional insurance.
The additional coverage Debris Removal pays the insured’s reasonable expenses for the removal
of debris of covered property if the property is damaged by an insured peril
