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Texas Claims Adjuster Licensing > Texas Dwelling Policy > Flashcards

Texas Dwelling Policy Flashcards

0
Q

What are the 3 forms that the Texas Dwelling Policy is available on

A

Basic - DP1

Broad - DP2

Special - DP3

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1
Q

Texas Dwelling policy

A
  • Covers property only
  • There are no specific coverages for liability
  • Must be owned by the policyholder, but they do not need to occupy the property
  • Is designed for individually owned houses, townhouses, garage apartments, stationary mobile homes
  • Cannot be used for dwellings within 500’ of business operations or more than 50% of the dwelling used for business
  • Cannot be used to cover houseboats, boat docks, boathouses, condos or dwellings under construction
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2
Q

What are the different coverages available on the Texas Dwelling Policy?

A 
A - Dwelling
B - Other Structures 
C - Personal Property
D - Fair Rental Value
E - Additional Living Expense
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3
Q

What perils are covered on Basic DP1 for the Texas Dwelling Policy?

A

Fire/lightning, riot, explosion, vehicle, civil commotion, hail, smoke, hurricane, aircraft, windstorm, vandalism, volcanic eruption.

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4
Q

What are the perils for Broad DP2 of Texas Dwelling Policy?

A

Basic
Fire/lightning, riot, explosion, vehicle, civil commotion, hail, smoke, hurricane, aircraft, windstorm, vandalism, volcanic eruption.
AND
Collapse, water damage, freezing (heat must be on), falling objects, weight of ice, sleet or snow, damage by burglars.

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5
Q

What perils are covered by Special DP3 of Texas Dwelling Policy?

A

All risks/open for A-Dwelling and B-Other Structures

BROAD for C,D,E
Basic
Fire/lightning, riot, explosion, vehicle, civil commotion, hail, smoke, hurricane, aircraft, windstorm, vandalism, volcanic eruption.
AND
Collapse, water damage, freezing (heat must be on), falling objects, weight of ice, sleet or snow, damage by burglars.

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6
Q

What are the coverages and valuation for Basic DP1 under Texas Dwelling Policy?

A

A-Dwelling - ACV
B-Other Structures - ACV
C-Personal Property - ACV
D-Fair Rental Value - 20% of coverage A

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7
Q

What are the coverages and valuation Broad DP2 of Texas Dwelling Policy?

A 
A-Dwelling - replacement value
B-Other Structures - replacement value
C-Personal Property - ACV
D-Fair Rental Value - 20% of coverage A
E-Additional Living Expenses - 20% of coverage A
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8
Q

What are the coverages and valuation for Special DP3 of Texas Dwelling Policy?

A 
A-Dwelling - replacement value
B-Other Structures - replacement value
C-Personal Property - ACV
D-Fair Rental Value - 20% of coverage A
E-Additional Living Expenses - 20% of coverage A
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9
Q

How much is paid for indirect losses on all Texas Dwelling Policies?

A

Indirect policies always pay 20% on Texas Dwelling Policies

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10
Q

What does Coverage A - Dwelling cover on Texas Dwelling Policies?

A
  • the dwelling itself
  • materials used to make repairs (bricks, plywood, etc)
  • Maintenance, floor coverings, window shades, refrigerators, stoves and other things provided by the landlord
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11
Q

What is covered by Coverage B - Detached structures on the Texas Dwelling Policy?

A

Detached garage
Storage shed
10% of coverage A

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12
Q

What is covered by Coverage C - Contents of Texas Dwelling Policies?

A
  • Personal or business property while on the premises
  • Personal property of guests while on the premises
  • Personal property off the premises (only covered for up to 10% of coverage C/ minimum loss to claim is $1,000). This is for when you take your stuff on vacation
  • Property of others (only covered for up to 10% of Coverage C). This is for when you have custody of someone else’s property and damage it such as borrowing neighbor’s lawnmower and it blowing up
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13
Q

What does Coverage D - Fair Rental Value of the Texas Dwelling Policy cover?

A

This is an indirect loss

Loss of rents (if the owner is the landlord) after a covered peril which makes the property uninhabitable during the time of reconstruction.

Maximum limit is 20% of Coverage A

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14
Q

What does Coverage E - Additional Living Expenses cover in the Texas Dwelling Policy?

A

This is an indirect loss

The insured will be reimbursed for additional expenses incurred due to a covered loss that damages a dwelling to the extent that the dwelling can no longer be used

Cost of a hotel after a fire

Limited to 20% of Coverage A

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15
Q

What are the extensions to Texas Dwelling Policy?

A

These are not additional amounts of insurance
They are included as part of the coverages provided when specific situations apply

  • Debris Removal - if a loss is covered by the policy, the cost of removing the debris caused by the loss is also covered
  • Improvements/repairs/alterations - the insured does not have to inform the insurance company of all improvements, repairs or alterations. They are automatically covered up to 10% of coverage C. You only need to report substantial improvements
  • Tree/Shrubs/Plants/Lawn - provides coverage for trees, shrubs, plants and lawns up to $500 each with a maximum of 5% of Coverage A against damage for covered perils. (wind is excluded)
  • Worldwide Coverage - personal property is covered up to 10% of Coverage C (personal property) limit
16
Q

What are the general exclusions to the Texas Dwelling Policy?

A
  • Flood
  • War & Nuclear Hazard
  • Theft (any act of stealing)
  • Electrical appliances unless damaged by lightning
  • Settling or earth movement (foundation damage)
  • Animals
  • Boats (except rowboats or canoes)
  • Money
17
Q

When must a policyholder provide proof of loss?

A

Within 91 days

18
Q

What are the insurers duties after a loss?

A

Acknowledge claim, investigate claim, pay claim

19
Q

What is loss payment?

A

Insurer will replace/restore/repair property, whichever way is least expensive

20
Q

What is liquidated demand?

A

Provides 100% of policy if a total loss by fire

21
Q

Under all dwelling forms, how much of the amount of insurance on the dwelling is automatically provided for other structures such as a detached garage?

A

10%

22
Q

After how many days does dwelling coverage for vandalism and malicious mischief suspended if the property is vacant?

A

60 days

23
Q

What form does not cover additional living expenses?

A

DP1 - Basic

24
Q

Is theft covered under the Texas Dwelling Policy?

A

Theft is not covered on the Texas Dwelling Policy

25
Q

Is flood covered by the Texas Dwelling Policy?

A

Flood is not covered by the Texas Dwelling Policy

26
Q

What is the coverage limit for trees, shrubs, and plants and what coverage applies to this type of loss?

A

$500 each or 5% of Coverage A

27
Q

What are the differences between Broad and Special on contents coverage?

A

None, Broad and Special have the same contents coverage.

28
Q

Which forms cover replacement cost on dwelling for Texas Dwelling Policy?

A

Broad and Special

Texas Claims Adjuster Licensing (12 decks)

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