P And C 4 Dwelling Policy

Question 1

All-Risk Policy

Answer 1

Insurance protecting the insured from loss arising from any peril other than those specifically excluded by name. This contrasts with Named Peril Insurance, which names the peril(s) insured against. Sometimes called open peril.

Question 2

Additional Living Expenses

Answer 2

Coverage designed to reimburse the insured for an increase in living expenses necessitated by loss to the dwelling. This indirect loss must be the result of direct loss by a covered peril.

Question 3

Appurtenant Structure

Answer 3

In a Homeowner or Fire Dwelling policy, an appurtenant structure is a permanent yard fixture fixture separate and detached from the dwelling. An example is a detached garage or perhaps a tool shed. This coverage is often referred to as Other Structures.

Question 4

Dwelling Fire Contracts

Answer 4

Monoline personal lines insurance policies that indemnify a loss to a house, contents within the home, and appurtenant other structures. They are the DP-1 Basic Form, DP-2 Broad form, and the DP-3 Special form.

Question 5

Extended Coverage Endorsement (ECE)

Answer 5

A specific endorsement attached to the Fire Dwelling DP-1 Basic form. It is a peril endorsement providing coverage for wind, hail, aircraft, riot, and civil commotion, volcanic eruptions, vehicle, explosion, and smoke.

Question 6

Ordinance Law

Answer 6

This is an additional coverage where the insured may use up to 10% of the dwelling amount to pay for the costs to bring the building up to code after a covered loss.

Question 7

Property Coverage

Answer 7

Four basic areas of the Homeowners contract that provide coverage for an insured’s property: 1) Dwelling, 2) Other Structures, 3) Unscheduled Personal Property, 4) Loss of Use