Texas Dwelling Policy Flashcards
What are the 3 forms that the Texas Dwelling Policy is available on
Basic - DP1
Broad - DP2
Special - DP3
Texas Dwelling policy
- 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
What are the different coverages available on the Texas Dwelling Policy?
A - Dwelling B - Other Structures C - Personal Property D - Fair Rental Value E - Additional Living Expense
What perils are covered on Basic DP1 for the Texas Dwelling Policy?
Fire/lightning, riot, explosion, vehicle, civil commotion, hail, smoke, hurricane, aircraft, windstorm, vandalism, volcanic eruption.
What are the perils for Broad DP2 of Texas Dwelling Policy?
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.
What perils are covered by Special DP3 of Texas Dwelling Policy?
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.
What are the coverages and valuation for Basic DP1 under Texas Dwelling Policy?
A-Dwelling - ACV
B-Other Structures - ACV
C-Personal Property - ACV
D-Fair Rental Value - 20% of coverage A
What are the coverages and valuation Broad DP2 of Texas Dwelling Policy?
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
What are the coverages and valuation for Special DP3 of Texas Dwelling Policy?
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
How much is paid for indirect losses on all Texas Dwelling Policies?
Indirect policies always pay 20% on Texas Dwelling Policies
What does Coverage A - Dwelling cover on Texas Dwelling Policies?
- 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
What is covered by Coverage B - Detached structures on the Texas Dwelling Policy?
Detached garage
Storage shed
10% of coverage A
What is covered by Coverage C - Contents of Texas Dwelling Policies?
- 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
What does Coverage D - Fair Rental Value of the Texas Dwelling Policy cover?
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
What does Coverage E - Additional Living Expenses cover in the Texas Dwelling Policy?
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
What are the extensions to Texas Dwelling Policy?
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
What are the general exclusions to the Texas Dwelling Policy?
- 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
When must a policyholder provide proof of loss?
Within 91 days
What are the insurers duties after a loss?
Acknowledge claim, investigate claim, pay claim
What is loss payment?
Insurer will replace/restore/repair property, whichever way is least expensive
What is liquidated demand?
Provides 100% of policy if a total loss by fire
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?
10%
After how many days does dwelling coverage for vandalism and malicious mischief suspended if the property is vacant?
60 days
What form does not cover additional living expenses?
DP1 - Basic
Is theft covered under the Texas Dwelling Policy?
Theft is not covered on the Texas Dwelling Policy
Is flood covered by the Texas Dwelling Policy?
Flood is not covered by the Texas Dwelling Policy
What is the coverage limit for trees, shrubs, and plants and what coverage applies to this type of loss?
$500 each or 5% of Coverage A
What are the differences between Broad and Special on contents coverage?
None, Broad and Special have the same contents coverage.
Which forms cover replacement cost on dwelling for Texas Dwelling Policy?
Broad and Special
