Dwelling Property Forms Flashcards
Name eligible dwellings
1 - 1-4 family homes 2- rented to others 3 - owned by a corp or partnership 4 - Low valued 5 - Mobile homes
What is the standard deductible for a dwelling policy?
$500
What is included on a dwelling dec page?
- deductible
- rating info
- coverage forms (perils)
- mandatory and optional endorsements
- location
DP1
Dwelling Property Basic Form
Coverage A
Dwelling: including permanently installed building equipment and outdoor equipment to service the property
Coverage B
Other Structures: DETACHED; excluding commercial use
Coverage C
Personal property or contents; belonging to insured, family members, guest or servant
tenants and boarders are not covered
Coverage D
Fair Rental Value; rental monies which insured is entitled due to covered loss until property is restored
What coverage is not automatic under a DP1?
Coverage E is not automatic, it may be selected if desired as additional coverage
Coverage E IS automatic under DP2 and DP3
Other coverages means
Clarification of coverage
Other coverages on DP1
R: Rental value 20% of A
I: Improvement, alterations, additions applies only if insured does not own premises - 10% of C
O: Other structures - 10% of A not used in business
T: Temporary location when covered - property is removed to save from covered perils - 5 days
R: Repairs to protect from further damage
O: Off premises personal property - 10% of C worldwide excludes boats
D: Debris removal, cost of after a covered loss
DP1 named perils
Fire, Lightning, plus internal explosion (referred to as fire)
Add FLORIDA mandatory Endorsement: CGCC Catastrophic Ground Cover Collapse
Extended coverages may be purchased for a DP1. Name them
WHARVES & vmm
W: Windstorm H: Hail A: Aircraft R: Riot or civil commotion (not war) V: Vehicles, 72hrs after Volcanic Eruption E: Explosion S: Smoke excluding fireplaces
VMM: Vandalism or Malicious Mischief
What is excluded under a DP1?
W: water damage by flood, sewers, or underground seepage
O: ordinance or laws where enforcement causes increases in construction cost
P: power interruption damage if power source is away from premises
E: earth movement other than CGCC
R: rebellion, revolution, insurrections, war, govt action
DP2
Dwelling Property Broad Form
What changes from a DP1 to a DP2?
Coverages A thru D are almost the same as a DP1 but now Add coverage E which may be added to a DP1 by endorsement
Min limits for cov a - $12,000
Coverage E
Additional Living Expense - to maintain normal living standard while dwelling is being repaired
DP2 named perils
Fire, Lightning, and WHARVES
Add FLORIDA mandatory Endorsement: CGCC
VMM built into DP2
Vacancy
60 consecutive days
DP2 Additional Perils (not in DP1)
C: collapse caused by certain perils
A: accidental discharge or water/steam from household appliances such as ac, plumbing, heating
P: pipe damage from freezing of all plumbing systems
B: burglar damage to premesis
O: objects falling - excludes tv antenna, awnings, fences
B: Breakage of glass
B: bulging steam or hot water heating&plumbing systms
I: weight of ice, snow or sleet
E: electrical damage from artificially generated electrical current
DP2 Other Coverages
R: Rental value & additional living expenses - 20% of A
I: Improvement, alterations, additions applies only if insured does not own premises - 10% of C
O: Other structures - 10% of A not used in business
T: Temporary location when covered - property is removed to save from covered perils - 30 days
R: Repairs to protect from further damage
O: Off premises personal property - 10% of C worldwide excludes boats
D: Debris removal
S: Shrubs, trees, plants - max 5%of A, $500 max on each - are covered for FLAREV perils
FLAREV`
Fire Lightning Aircraft Riot Explosion Vandalism
Settlement under DP2
replacement cost - cov a & b only - pays new for old if property insured for 80% or replacement cost (must notify company within 180 days of intent to replace) if not repaired in a reasonable time, ACV is paid
Which dwelling policy is the CGCC mandatory endorsement added to?
DP1, DP2, AND DP3
Building Ordinance
automatic on DP2&3 for building owner - 10% of A, for non-owner - 10% of B, for tenant - 10% of improvement limit applies
DP1 may get this through endorsement
DP3`
Dwelling Property Special Form
What is different between a DP2 and DP3?
open perils unless excluded
replacement cost on A&B is same as DP2
DP3 Exclusions
WOPER & WISER
Water damage Wear&tear
Ordinance or laws Insect, animal
Power interruption Smog,mold,rot
Earth movement Expansion/settling
Rebellion, revolution Rust&deterioration
Examples of covered losses under DP3 NOT covered under DP2
- interior damage to dwelling from wind/rain w/o exterior damage
- theft of integral part of the building
Florida Law: Windstorm coverages
must be provided under all residential property policies except when eligible for wind-only coverage from citizens. insured has option to exclude wind if in insured own handwriting and signs his/her name, which also must be signed by every other NI on the policy AND written statement from mtg indicating approval of electing to exclude windstorm/ hurricane covg
DP3 Endorsements
Broad form theft Limited theft CGCC Sinkhole Building Ordinance Automatic inc in ins Cover personal property associated with business personal liability coverage form
Broad form theft endorsement
owner occupied - on/off premises - internal limits $200 money; $1500 trailer,jewelry, watercraft; $2500 firearms&silverware
Limited theft endorsement
Non-owner occupied - on premises only internal limits $1500 trailers, watercraft $2500 firearms
Catastrophic Ground Cover Collapse: CGCC
Added to all dwelling forms; includes geological activity resulting in:
ABRUPT collapse of ground cover
A DEPRESSION in ground visible to naked eye
STRUCTURAL DAMAGE to building, include foundation
CONDEMNED/ ORDER TO VACATE by govt
Cost to fill the collapse not covered
Sinkhole coverage endorsement
optional, policy can be issued without sinkhole covg bc CGCC has limited covg
Building Ordinance endorsement
optional increase of the 10% automatically included by Florida law up to 25-50%
- Value of undamaged portion of building to be demolished bc of ordinance or code
- Cost to demolish
- Increased cost to rebuild back to code
Automatic increase in insurance
annual % increase 4% or higher on A&B prorated throughout the policy
Is there liability coverage under dwelling?
NO; but it can be bought and added on
Dwelling Cancellation under 90 days
Material Misrep - 0 days
Failure to comply - 0 days
Other reasons - 20 days
Dwelling Cancellation over 90 days
Material Misrep - 120 days written Failure to comply - 120 days written Substantial Risk Change - 120 days written Cancel Class of Risk - 120 days written Non-renewal - 120 days written
How many days notice for nonpayment of premium?
10 days written notice
How many days notice for renewal?
45 days written of renewal premium
