Personal Lines-Dwelling Policy (DP) Flashcards
Unoccupancy
an insured structure in which nobody has been living for a period of time, but in which some property is stored (e.g., the insured went on vacation)
Vacancy
an insured structure in which nobody has been living and no property has been stored for a period of time (e.g., the insured moved and is trying to sell the house)
Coverage Forms
DP-1 (basic)
most limited coverage; losses are covered on an actual cash value basis; no minimum required amount of insurance
Coverage Forms
DP-2 (broad)
losses are covered on a replacement cost basis; minimum required amount of coverage (80%)
Coverage Forms
DP-3(special)
broadest coverage; losses are covered on a replacement cost basis
Types of Coverage
Property Coverages:
COVERAGE A-Dwelling
dwellings, attached structures, and materials and supplies
Types of Coverage
Property Coverages:
Coverage B- Other Structures
structures on residence premises separated from the dwelling
Types of Coverage
Property Coverages:
Coverage C- Personal Property
personal property of the insured and others, property located at another residence premises, and worldwide coverage
Types of Coverage
Property Coverages:
Coverage D- Fair Rental Value
income from a rental property
Types of Coverage
Property Coverages:
Coverage E-Additional Living Expenses
expenses for alternative housing for the insured due to a covered loss; only available in DP-2and DP-3
Additional Coverage Extensions:
-debris removal
-fire department service charge
-other structures
-property removal
-reasonable cost for repairs
-rental value and additional living expense
-tenant’s improvements, alterations, and additions
-worldwide personal property coverage
Exclusions
-ordinance or law
-water damage
-power failure
-neglect
-war and nuclear hazard
-intentional acts
-earth movement
-government action
KNOW THIS
Dwelling policies do not offer liability coverage; it can be added by endorsement or as a separate policy
DP-1 and DP-2 are named peril forms; DP-3 is an open peril form
