Dwelling Policy

Question 1

Who can purchase Dwelling Policy?

Answer 1

owners or owner/occupants of dwelling structure. (own property and you rent it out/renter who wants personal property covered, but not the building)

Question 2

If a loss occurs damaging the building, other structures, or contents it is a ______ loss

Answer 2

Direct Loss

Question 3

A peril is ________?

Answer 3

anything that can cause a loss

Question 4

What are the 3 Dwelling Property forms?

Answer 4

1. Basic Form (DP-1)
2. Broad Form (DP-2)
3. Special Form (DP-3)

Question 5

2 of the forms are Named Peril Policies, except ________

Answer 5

(DP-3) Special Form- All Risk Policy

Question 6

What is covered in coverage A- Dwelling?

Answer 6

1. all structures attached to the dwelling, such as attached garage.
2. Building equipment (AC unit), fixtures and outdoor equipment located on the dwelling premises
3. Building materials intended for use in remodeling the dwelling.

Question 7

What does coverage B cover-Other Structures?

Answer 7

1. Unattached structures that are separated from the dwelling by a clear space.

Question 8

What does coverage C- Personal Property cover?

Answer 8

1. 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).

Question 9

What does coverage D- fair rental value cover?

Answer 9

The policy includes a coverage for loss of rents.

Question 10

Give an example of indirect loss

Answer 10

Rental income after lightening hits the house and the house catches fire.

Question 11

What are the (5) standard exclusions that are contained in the dwelling forms?

Answer 11

1. Ordinance or Law
2. Earth Movement
3. Water Damage (including sewer backup)
4. Power Failure
5. Neglect, War, Nuclear Hazard, or Intentional Loss

Question 12

How much is the dwelling policy deductible?

Answer 12

$500 per occurrence

Question 13

Which form is a named peril contract?

Answer 13

Basic Form

Question 14

True or False: An unendorsed DP-1 covers vandalism.

Answer 14

False.

Question 15

True or False: A DP-1 contract is ACV. Depreciation will be taken on all covered losses.

Answer 15

True

Question 16

Which acronym is designed to name perils of the DP-1 form?

Answer 16

REV FL SHAW

Question 17

What is REV FL SHAW?

Answer 17

R-Riot
E-Explosion
V- Vehicles, Volcano
F- Fire
L- Lightening
S- Smoke
H- Hail
A- Aircraft
W- Wind

Question 18

What is NOT included in the DP1 Vandalism endorsement?

Answer 18

Glass Damage

Question 19

Are contents automatically covered in DP policies?

Answer 19

No- contents must be chosen by insured along with the limit of coverage.

Question 20

True or False: Vandalism does not cover theft of property, but it does cover damage to the structure caused by burglars.

Answer 20

True

Question 21

What are the additional coverages offered in DP policies

Answer 21

1. Debris removal
2. off-premises removal.
3. expenses to prevent further loss once property has been damaged
4. fire dept. service charge (up to $500)

Question 22

Define additional coverages? DP-1

Answer 22

These come automatically and with no deductible in all three dwelling forms (DP-1, DP-2, DP-3)

Question 23

What additional coverages are included in the DP2 & DP3 forms?

Answer 23

1. Collapse (structure, weight of people, rain, animals, or hidden/undetected insects
2. Glass Breakage- unless vacant for more than 30 days
3. Ordinance and Law- (10% of the dwelling amount)
4. Trees, Shrubs, & Plants- (additional 5% of dwelling amount)

Question 24

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

Answer 24

$5,000 (10% extension of Coverage C from the premises)