Dwelling Policy Questions (Set Five, Part One)

Question 1

What does coverage A relate to?

Answer 1

Dwellings.

Question 2

What is covered under coverage A?

Answer 2

All dwellings described on the declarations page that are used for residence purposes. This also applies to structures attached to the dwelling, materials and supplies and equipment found on or next to the dwelling that are used to construct or repair the dwelling.

Question 3

What does coverage B apply to?

Answer 3

Other structures.

Question 4

What does coverage B not cover?

Answer 4

Land, any structure being rented to someone who’s not a tenant of the dwelling, structures used for farming, commercial operations, manufacturing, grace sites, or mausoleums.

Question 5

“Fuel tanks outside of the equipment” excludes what from being covered?

Answer 5

Structures that house commercial, farming, or manufacturing property.

Question 6

What does coverage C relate to?

Answer 6

Personal property.

Question 7

What does coverage C cover?

Answer 7

Property of the insured within the dwelling or used by the insured or their family members while residing in the dwelling. Some property owned by guests and servants may be covered.

Question 8

What does coverage C not cover?

Answer 8

Animals, motor vehicles, accounts, letters of credit, manuscripts, bank notes, bills, deeds, currency, gold, silver, platinum, data, records, credit cards, water or steam.

Question 9

What does coverage D relate to?

Answer 9

Fair rental value.

Question 10

When is “fair rental value” covered by an insurance company?

Answer 10

When the losses to property described in Coverages A, B and C render the location unfit for its normal use, the fair rental value of the rentable portion of the dwelling will be covered.

Question 11

How long are payments under coverage D made?

Answer 11

For the smallest amount of time required to repair/replace damage up to a maximum of two weeks.

Question 12

What is not covered under coverage D?

Answer 12

Expenses that do not continue while the property isn’t being rented and losses/expenses caused by cancellation of a lease or agreement.

Question 13

What can an insured party use to pay for damages to “other structures” described in coverage B?

Answer 13

10% of the limit of liability under coverage A.

Question 14

What can 10% of the coverage C limit of liability be used for?

Answer 14

Improvements, alterations and additions to covered property anywhere in the world.

Question 15

What will the insurance company pay for as a result of a volcanic eruption?

Answer 15

Ash, dust or particles.

Question 16

What can an insured party use to pay for losses of fair rental value? What is the max?

Answer 16

20% of the limit of liability under coverage A up to a max of 1/12th of the 20% each month.

Question 17

How long will an insurance company lower property that’s being removed because of an impending peril? Is limit of liability changed by this?

Answer 17

A maximum of 5 days; no.

Question 18

When are fire department service charges not covered?

Answer 18

When the property is within the city or district limits of the fire department.

Question 19

How much is the standard coverage of fire department service charges?

Answer 19

$500.

Question 20

The standard dwelling policy covers losses directly related to which perils?

Answer 20

Fire, lightening and internal explosions.

Question 21

What does internal explosion coverage exclude?

Answer 21

Broken water pipes, broken pressure relief devices, electric arcing, or any loss related to the explosion of steam pipes or boilers when these are owner or operated by the tenant.

Question 22

When is windstorm/hail coverage included?

Answer 22

When you have a premium for extended coverage.

Question 23

What windstorm/hail damage isn’t covered?

Answer 23

Damage done to the inside of the property unless the storm itself caused the exposure.

Question 24

What is covered when extended coverage is indicated on the declarations page?

Answer 24

Losses due to riot, civil commotion, aircraft, spacecraft, self-propelled missiles, some caused by vehicles, vandalism or malicious mischief and smoke.

Question 25

When is damage by a vehicle not covered?

Answer 25

When the damage is done to driveways or fences and when the vehicle is being operated by the insured or a resident of the insured dwelling.

Question 26

When is smoke damage not covered?

Answer 26

When it comes from the fireplace.

Question 27

What type of vandalism/malicious mischief damage isn’t covered?

Answer 27

Damage to glass or safety glazing material.

Question 28

What are the general exclusions of the standard dwelling policy in relation to ordinance and law?

Answer 28

Losses related to ordinances or laws that mandate or govern the construction, repair, or removal of property; ones that cause a decrease in the value of the property; or ones that require the insured to monitor, test, treat, or neutralize pollutants.

Question 29

What are the general exclusions for earth movement and water damage?

Answer 29

Losses caused by earthquake, landslide, mudslide, sinkholes, and other instances of subsidence whether they were caused by humans, animals or natural forces.

Question 30

What are the exceptions to the earth movement and water damage exclusions?

Answer 30

When the movement causes a fire or explosion; the policy will cover all damage related to this.

Question 31

What are the exclusions and exceptions of loss by power failure?

Answer 31

When the power failure or some other utility service causes a loss from a covered peril; all damage as a direct result of the covered peril are insured against.

Question 32

When an intentional loss occurs, who is still entitled for coverage?

Answer 32

No one.

Question 33

What are the exclusions and exceptions for losses due to government action?

Answer 33

Actions taken during a fire to prevent greater damage.