HO and Dwelling Policies Flashcards
DP-1 Basic Form losses are payed on ___
ACV
What type of Peril Policy is DP-1, what does it cover?
DP-1 is a Named Peril policy, it covers fire, lightning, internal explosion only.
Actual Cost Value is calculated how?
Current replacement cost minus depriciation.
What are the extended coverages available under DP-1
Windstorm/hail, explosion, smoke, aircraft/vehicle, riot/civil commotion, volcanic eruption
AND
Vandalism and malicious mischief are their own endorsement.
Is theft covered under DP-1?
No.
What type of perils does DP-2 Broad Form cover?
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
How are DP-2 Broad Form losses paid?
How much coverage must the insured keep to maintain it?
Losses are paid on replacement cost as long as the insured maintains a minimum coverage equal to 80% of the dwelling replacement cost
What does DP-2 Broad Form Cover?
DP-2 covers perils from DP-1 (fire, electricity, internal explosion), vandalism and malicious mischief and the extended coverage perils from DP-1
B.B. BICE-GOLF
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
What type of Perils does DP-3 cover?
Open Perils/All Risk Perils
All Perils are insured against except those specifically excluded
Dwelling Coverage A covers…
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.
Dwelling Coverage B covers…
Unattached structures such as garages, buildings in yards.
What is the coverage limit of Coverage B in Dwelling Policies
The value of Coverage B is 10% of Coverage A
Dwelling Coverage C covers…
Personal Property/Content
Coverage C must be declared with an endorsement
What does Coverage C not cover?
Children, Pets, Currency and non-hobby or model Aircraft
What is Dwelling Coverage D? How much is it’s value?
Fair Rental Value, covers 20% of Dwelling Coverage A
What is the standard deductible for dwelling?
$250
Dwelling Coverage D - Fair Rental Value covers…
Lost rent of tenants who moved out because of a covered peril/loss (less utilities)
Coverage E - Additional Living Expense covers…
Hotel and living expenses in addition to normal living expenses if the owner occupies the building.
Other Coverages Include…
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
How much are trees covered for?
5% of Coverage A or up to $600 per tree or shrub.
What is the general form structure of HO policies
- 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.
To be eligible for forms HO-2, HO-3, HO-5, and HO-8
Must be owner occupied dwelling with no more than 4 residential units and named insured must reside in one of the units.
To be eligible for HO-4 you must be
A renter or a tenant of a residence or apartment
