Dwelling Policy Questions (Set Five, Part One) Flashcards
What does coverage A relate to?
Dwellings.
What is covered under coverage A?
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.
What does coverage B apply to?
Other structures.
What does coverage B not cover?
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.
“Fuel tanks outside of the equipment” excludes what from being covered?
Structures that house commercial, farming, or manufacturing property.
What does coverage C relate to?
Personal property.
What does coverage C cover?
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.
What does coverage C not cover?
Animals, motor vehicles, accounts, letters of credit, manuscripts, bank notes, bills, deeds, currency, gold, silver, platinum, data, records, credit cards, water or steam.
What does coverage D relate to?
Fair rental value.
When is “fair rental value” covered by an insurance company?
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.
How long are payments under coverage D made?
For the smallest amount of time required to repair/replace damage up to a maximum of two weeks.
What is not covered under coverage D?
Expenses that do not continue while the property isn’t being rented and losses/expenses caused by cancellation of a lease or agreement.
What can an insured party use to pay for damages to “other structures” described in coverage B?
10% of the limit of liability under coverage A.
What can 10% of the coverage C limit of liability be used for?
Improvements, alterations and additions to covered property anywhere in the world.
What will the insurance company pay for as a result of a volcanic eruption?
Ash, dust or particles.
What can an insured party use to pay for losses of fair rental value? What is the max?
20% of the limit of liability under coverage A up to a max of 1/12th of the 20% each month.
How long will an insurance company lower property that’s being removed because of an impending peril? Is limit of liability changed by this?
A maximum of 5 days; no.
When are fire department service charges not covered?
When the property is within the city or district limits of the fire department.
How much is the standard coverage of fire department service charges?
$500.
The standard dwelling policy covers losses directly related to which perils?
Fire, lightening and internal explosions.
What does internal explosion coverage exclude?
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.
When is windstorm/hail coverage included?
When you have a premium for extended coverage.
What windstorm/hail damage isn’t covered?
Damage done to the inside of the property unless the storm itself caused the exposure.
What is covered when extended coverage is indicated on the declarations page?
Losses due to riot, civil commotion, aircraft, spacecraft, self-propelled missiles, some caused by vehicles, vandalism or malicious mischief and smoke.