Dwelling Policy Coverages

Question 1

What kind of policy doesn’t require the owner of the house?

Answer 1

Dwelling Policy

Question 2

What are the three dwelling forms?

Answer 2

DP-1: Basic Form
DP-2: Broad Form
DP-3: Special Form

Question 3

What does a DP-1 cover?
The losses are covered on what basis?

Answer 3

BASIC
1. fire
2. lightening
3. internal explosion

Losses are covered on an = ACV basis
Named Perils

$$$ Extended Coverage Perils (ECP) can be purchased:
- WHARVES is covered
If ECP is purchased then you can purchase Vandalism and Malicious Mischeif (VMM)

Question 4

What does a DP-2 cover?
The losses are covered on what basis?

Answer 4

BROAD
This coverage automatically comes with everything in a DP-1 policy
+ BBBICEGOLF (F= freezing - only covered if insured took steps to maintain heat in the building)

Losses are covered on a = Replacement Cost basis
Named Perils

E.g. weight of ice, sleet, snow, falling objects, burglary, bursting of heat, collapse, and glass

Question 5

What does a DP-3 cover?
The losses are covered on what basis?

Answer 5

SPECIAL
Coverage excludes:
- theft
- wear & tear
- rodents
- collapse

Losses are covered on a = Replacement Cost basis
Open Perils basis

Question 6

What does BBBICEGOLF stand for?

Answer 6

B - bursting of heat
B - breaking of water heaters
B - burglary
I - ice, snow, and sleet of weight
C - collapse
E - electrical damage
G - glass breakage
O - objects falling from outside
L - leakage of water or steam
F - freezing of plumbing

Question 7

What does WHARVES stand for?

Answer 7

W - wind
H - hail
A - aircraft
R - riot
V - ehicles
E - explosion
S - smoke

Question 8

What are the 2 endorsements you can purchase $ on a DP-1?

Answer 8

1. Extended Coverage Perils (ECP)
   
   • WHARVES
2. Vandalism Malicious Mischief (VMM)

Question 9

Dwelling policies do not automatically include two things, but can be purchased what are they?

Answer 9

1. Liability
   E.g. if a dog bites someone on the property then it comes out of pocket for the insured.
2. Contents
   E.g. theft of personal property

These 2 coverages can be purchased

Question 10

What is Coverage A?
What does it cover?

Answer 10

DWELLING
Covers the walls and roof, any attached structures to rebuild the home, and any materials/supplies on or next to the dwelling.

Question 11

What is Coverage B?
What does it cover?
How much of Coverage A does it cover?

Answer 11

OTHER STRUCTURES
Any detached structures from the dwelling.

E.g. shed, gazebo, detached garage, fence, etc.)

Covers 10% of Coverage A

Question 12

What is Coverage C?
What does it cover?
How much of Coverage A does it cover?

Answer 12

PERSONAL PROPERTY/CONTENTS
Not automatic, must purchase
Any household or personal property, including anything the insured or household members use or own.

Covers 50% of Coverage A

Question 13

What is Coverage D?
What does it cover?
How much of Coverage A does it cover?

Answer 13

FAIR RENTAL VALUE
E.g. a house burns down, tenants are gone = the insurance company will pay for the rent money to the insured while the home is being rebuilt

Covers 20% of Coverage A
- will pay out maximum
- insured should be cautious of where they stay and how much of their stipend
they spend

Question 14

What is Coverage E?
What does it cover?
How much of Coverage A does it cover?

Answer 14

ADDITIONAL LIVING EXPENSE
Pays any necessary living expenses for any indirect losses - applies to the landlord.

Covers 20% of Coverage A

Automatically included in DP-2 and DP-3 only

Question 15

Additional Coverage for HO/DW:
For loss caused by a peril.
- $500/tree
- Up tp 5% of Coverage A
- $500/tree removal and up to $1,000

Answer 15

Tree, Shrubs, and Other Plants

Question 16

Additional Coverage for HO/DW:
If the covered property is damaged, the policy will pay the reasonable costs.
E.g. hail damages the window (insured must protect from further damage)

Answer 16

Reasonable Repairs

Question 17

Additional Coverage for HO/DW:
Tenants make _________, ________, and _________ to the property they’re renting.
E.g. you put in ceiling fans and the house burns down
Will allow you to claim 10% of Coverage C to pay for anything broken

Answer 17

Improvement, Alterations, and Additions

Question 18

Additional Coverage for HO/DW:
The insured may use up to 10% of Coverage C (Personal Property) while it is located anywhere in the world on vacation.

Answer 18

Worldwide Coverage

Question 19

Additional Coverage for HO/DW:
The policy will pay $500 for the fire department bills.
The policy deductible does not apply

Answer 19

Fire Department Service Charge

Question 20

Additional Coverage for HO/DW:
Has to be part of the building to be covered.
Excluding vacancy of 61 days.

Answer 20

Glass Coverage

Question 21

Additional Coverage for HO/DW:
Money is built into the policy to haul away trash

Answer 21

Debris Removal

Question 22

Additional Coverage for HO/DW:
E.g. tree falling on the house
Property is removed from the location because it is endangered by a covered peril
- You get 30 days of open peril coverage following on active claim
- Only 5 days on a DP-1

Answer 22

Property Removal

Question 23

Additional Coverage for HO/DW:
- Allows you to make repairs to bring the house up to code
- You get 10% of Coverage A

Answer 23

Ordinance or Law

Question 24

Additional Coverage for HO/DW:
- Known as abrupt falling or caving in of the building
- Cannot be occupied or still standing

Answer 24

Collapse

Question 25

6 Exclusions for HO/DW

Answer 25

Power Failure
Ordinance or Law
Neglect
War
Nuclear Hazard
Intentional Loss
Governmental Action

Question 26

Exclusion for HO/DW:
The insurer will not cover losses covered by ______ ________, which includes:
- earthquake
- landslide, mudflow, mudslide
-earth sinking, rising, or shifting

Answer 26

Earth Movement

Question 27

Exclusion for HO/DW:
The insurer will not pay for losses caused by water or outside water coming in

Answer 27

Water Damage