Dwelling Policy Flashcards
Who can purchase Dwelling Policy?
owners or owner/occupants of dwelling structure. (own property and you rent it out/renter who wants personal property covered, but not the building)
If a loss occurs damaging the building, other structures, or contents it is a ______ loss
Direct Loss
A peril is ________?
anything that can cause a loss
What are the 3 Dwelling Property forms?
- Basic Form (DP-1)
- Broad Form (DP-2)
- Special Form (DP-3)
2 of the forms are Named Peril Policies, except ________
(DP-3) Special Form- All Risk Policy
What is covered in coverage A- Dwelling?
- all structures attached to the dwelling, such as attached garage.
- Building equipment (AC unit), fixtures and outdoor equipment located on the dwelling premises
- Building materials intended for use in remodeling the dwelling.
What does coverage B cover-Other Structures?
- Unattached structures that are separated from the dwelling by a clear space.
What does coverage C- Personal Property cover?
- Contents coverage- personal contents, usual or incidental to the occupancy of the premises as a dwelling and belonging to the insured or members of the insured’s household and, at the insured’s option, property of guests and servants (but not roomers).
What does coverage D- fair rental value cover?
The policy includes a coverage for loss of rents.
Give an example of indirect loss
Rental income after lightening hits the house and the house catches fire.
What are the (5) standard exclusions that are contained in the dwelling forms?
- Ordinance or Law
- Earth Movement
- Water Damage (including sewer backup)
- Power Failure
- Neglect, War, Nuclear Hazard, or Intentional Loss
How much is the dwelling policy deductible?
$500 per occurrence
Which form is a named peril contract?
Basic Form
True or False: An unendorsed DP-1 covers vandalism.
False.
True or False: A DP-1 contract is ACV. Depreciation will be taken on all covered losses.
True
Which acronym is designed to name perils of the DP-1 form?
REV FL SHAW
What is REV FL SHAW?
R-Riot E-Explosion V- Vehicles, Volcano F- Fire L- Lightening S- Smoke H- Hail A- Aircraft W- Wind
What is NOT included in the DP1 Vandalism endorsement?
Glass Damage
Are contents automatically covered in DP policies?
No- contents must be chosen by insured along with the limit of coverage.
True or False: Vandalism does not cover theft of property, but it does cover damage to the structure caused by burglars.
True
What are the additional coverages offered in DP policies
- Debris removal
- off-premises removal.
- expenses to prevent further loss once property has been damaged
- fire dept. service charge (up to $500)
Define additional coverages? DP-1
These come automatically and with no deductible in all three dwelling forms (DP-1, DP-2, DP-3)
What additional coverages are included in the DP2 & DP3 forms?
- Collapse (structure, weight of people, rain, animals, or hidden/undetected insects
- Glass Breakage- unless vacant for more than 30 days
- Ordinance and Law- (10% of the dwelling amount)
- Trees, Shrubs, & Plants- (additional 5% of dwelling amount)
If the insured were staying in a hotel and her clothing was destroyed by fire, how much would apply to off-premise?
There was $50,000 of contents
$5,000 (10% extension of Coverage C from the premises)
