Dwelling Policy

Question 1

A gas stove exploding in the dwelling is an example of which named peril?

Answer 1

Internal explosion

Question 2

What is the maximum number of units in residential dwellings insurable by a Dwelling policy?

Answer 2

Up to 4 units

Question 3

What are extended covered perils on a basic dwelling policy?

Answer 3

1. Windstorm or hail. 5. Riot or civil commotion
2. Explosion. 6. Volcanic eruption
3. Smoke. 7. Vandalism
4. Aircraft and vehicles. 8. Malicious mischief

Question 4

Replacement cost coverage is provided in both broad and special form dwelling policies when the amount of insurance on the dwelling is what percentage?

Answer 4

At least 80% of the replacement cost

Question 5

Which dwelling form is the broad form?

Answer 5

DP-2

Question 6

Which dwelling policy coverage will provide protection for contents damaged by fire in an insured dwelling?

Answer 6

Coverage C - personal property

Question 7

What are some of the exclusions found in all 3 dwelling forms?

Answer 7

1. Earth movement. 6. Nuclear hazard
2. water damage. 7. Intentional loss
3. Power failure. 8. Freezing of plumbing
4. Neglect. 9. Ordinance or law
5. War. 10. Government action

Question 8

A basic dwelling policy automatically provides coverage against what?

Answer 8

Fire, lighting, and internal explosion

Question 9

What do dwelling policies insure?

Answer 9

Dwelling only
Contents only
Both dwelling and contents

Question 10

When will damage to the interior of the building be covered under the falling objects peril in the broad form of the dwelling policy?

Answer 10

Only if the interior damage is a direct result of exterior damage from a falling object.

Question 11

Under Coverage C-personal property in the dwelling policy, when will a guests property be covered?

Answer 11

Only when the insureds property is at the insured location.

Question 12

What are the 3 types of coverage available in dwelling policies?

Answer 12

Basic
Broad
Special

Question 13

In dwelling policies, within how many years of loss may an insured bring a lawsuit against the insurer?

Answer 13

2 years

Question 14

Which of the 3 DP forms provides the most limited coverage?

Answer 14

DP-1 (Basic)

Question 15

Under what conditions can broad theft coverage be added to a dwelling policy?

Answer 15

If the insured is the owner-occupant of the dwelling.

Question 16

Which dwelling form provides open peril coverage on the building?

Answer 16

DP-3 (Special)

Question 17

DP-3 (Special) is an open-peril form. What does that mean?

Answer 17

All perils are insured unless specifically excluded.

Question 18

What are the 5 coverages of dwelling policies?

Answer 18

Coverage A - Dwelling
Coverage B - Other structures
Coverage C - Personal property
Coverage D - Fair rental value
Coverage E - Additional living expenses

Question 19

Which of coverage dwelling form(s) will pay for the replacement cost of a dwelling?

Answer 19

DP-2 (Broad)

DP-3 (Special)

Question 20

Which policy coverage will insure a garage not attached to the primary insured dwelling?

Answer 20

Coverage B - Other structures

Question 21

If an insured is in the process of moving to a new location, his personal property coverage under the dwelling policy will apply on a pro Rafa basis at both locations for how long?

Answer 21

30 days

Question 22

In dwelling policies, any volcanic activity will be considered part of one occurrence if it all happens within how many hours?

Answer 22

72 hours

Question 23

If 3 volcanic eruptions happen within 48 hours, and each contributes to property damage, how many deductibles will apply in the dwelling policy?

Answer 23

1 deductible (all instances of volcanic eruptions that occur within a 72 hour period are considered 1 occurrence)

Question 24

In dwelling policies, what is the purpose of the automatic increase in insurance endorsement that increases the amount of insurance by an annual percentage?

Answer 24

To offset the effects of inflation.

Question 25

An insured’s house becomes uninhabitable due to damages by a fire. As a result the insured has to rent an apartment until repairs are made. Which type of coverage under the dwelling policy will pay for the expense of renting the apartment?

Answer 25

Coverage E- Additional living expenses