HO and Dwelling Policies

Question 1

DP-1 Basic Form losses are payed on ___

Answer 1

ACV

Question 2

What type of Peril Policy is DP-1, what does it cover?

Answer 2

DP-1 is a Named Peril policy, it covers fire, lightning, internal explosion only.

Question 3

Actual Cost Value is calculated how?

Answer 3

Current replacement cost minus depriciation.

Question 4

What are the extended coverages available under DP-1

Answer 4

Windstorm/hail, explosion, smoke, aircraft/vehicle, riot/civil commotion, volcanic eruption
AND
Vandalism and malicious mischief are their own endorsement.

Question 5

Is theft covered under DP-1?

Answer 5

No.

Question 6

What type of perils does DP-2 Broad Form cover?

Answer 6

DP-2 covers Named Perils, which are burglary, weight of ice/sleet/snow, tearing apart/cracking/burning or bulging, falling objects, accidental discharge or overflow of energy, freezing of plumbing and artificially discharged energy

Question 7

How are DP-2 Broad Form losses paid?

How much coverage must the insured keep to maintain it?

Answer 7

Losses are paid on replacement cost as long as the insured maintains a minimum coverage equal to 80% of the dwelling replacement cost

Question 8

What does DP-2 Broad Form Cover?

Answer 8

DP-2 covers perils from DP-1 (fire, electricity, internal explosion), vandalism and malicious mischief and the extended coverage perils from DP-1

Question 9

B.B. BICE-GOLF

Answer 9

Bursting of heating systems 
Burglary damage
Breaking of water heaters
Ice/snow/sleet weight
Collapse of building or part of a building
Electrical damage (artificial)
Glass Breakage
Objects falling from outside
Leakage of water or steam damage
Freezing of plumbing

Question 10

What type of Perils does DP-3 cover?

Answer 10

Open Perils/All Risk Perils

All Perils are insured against except those specifically excluded

Question 11

Dwelling Coverage A covers…

Answer 11

The dwelling and anything physically attached to the dwelling, materials that are next to the dwelling that are intended for the dwelling are covered as well.

Question 12

Dwelling Coverage B covers…

Answer 12

Unattached structures such as garages, buildings in yards.

Question 13

What is the coverage limit of Coverage B in Dwelling Policies

Answer 13

The value of Coverage B is 10% of Coverage A

Question 14

Dwelling Coverage C covers…

Answer 14

Personal Property/Content

Coverage C must be declared with an endorsement

Question 15

What does Coverage C not cover?

Answer 15

Children, Pets, Currency and non-hobby or model Aircraft

Question 16

What is Dwelling Coverage D? How much is it’s value?

Answer 16

Fair Rental Value, covers 20% of Dwelling Coverage A

Question 17

What is the standard deductible for dwelling?

Answer 17

$250

Question 18

Dwelling Coverage D - Fair Rental Value covers…

Answer 18

Lost rent of tenants who moved out because of a covered peril/loss (less utilities)

Question 19

Coverage E - Additional Living Expense covers…

Answer 19

Hotel and living expenses in addition to normal living expenses if the owner occupies the building.

Question 20

Other Coverages Include…

Answer 20

Removal of damaged property and debris, fire department service charge (up to $500), Worldwide personal property, tenant’s improvements alterations and additions, reasonable cost for repairs

Question 21

How much are trees covered for?

Answer 21

5% of Coverage A or up to $600 per tree or shrub.

Question 22

What is the general form structure of HO policies

Answer 22

• Agreement;
• Definitions;
• Section I – Property Coverage;
• Section I – Perils Insurance Against;
• Section I – Exclusions;
• Section I – Conditions;
• Section II – Liability Coverages;
• Section II – Exclusions;
• Section II – Additional Coverages;
• Section II – Conditions; and
• Sections I and II – Conditions.

Question 23

To be eligible for forms HO-2, HO-3, HO-5, and HO-8

Answer 23

Must be owner occupied dwelling with no more than 4 residential units and named insured must reside in one of the units.

Question 24

To be eligible for HO-4 you must be

Answer 24

A renter or a tenant of a residence or apartment

Question 24

To be eligible for HO-4 you must be

Answer 24

A renter or a tenant of a residence or apartment

Question 25

To be eligible for HO-6

Answer 25

Own a condo or cooperative unit

Question 26

Additional eligibility features for HO Policys

Answer 26

Must be primary residence
Must be used for residential purposes
Dwellings under construction can be insured if the insured WILL reside in the completed dwelling
Up to 2 roomers or boarders in the residential unit