The Dwelling Policy

Question 1

A comprehensive insurance package. It might include protection a particular insurance buyer does not actually need, such as loss assessment coverage or grave markers coverage. policy cannot select the coverages they want and eliminate the remaining coverages to save money.

Answer 1

Homeowners Policy

Question 2

These policies cover only basic property insurance with additional coverages available through a wide range of endorsements. The insured can choose the coverages he or she wants to buy.

Answer 2

Dwelling Policy

Question 3

Fire, lightning, and internal explosion are the only standard perils under this form, with optional extended coverage perils (windstorm or hail, explosion, riot or civil commotion, aircraft, vehicles, smoke, and volcanic eruption) and vandalism and malicious mischief coverage also available.

Answer 3

Limited property insurance coverage is available with the Dwelling Property 1. Basic Form (DP 00 01) or DP 1 for short.

Question 4

This named perils form includes the DP 1 perils, plus seven additional perils, such as falling objects and the weight of ice, snow, or sleet.

Answer 4

Broader coverage is available with the Dwelling Property 2. Broad Form (DP 00 02) or DP 2.

Question 5

The DP 3’s personal property coverage is the same as in the DP 2.

Answer 5

Open perils building coverage is provided by the Dwelling Property 3. Special Form (DP 00 03) or DP 3.

Question 6

Dwelling policies may include the following coverages

Answer 6

• Dwelling
• Other Structures
• Personal Property
• Fair Rental Value
• Additional Living Expenses

Question 7

Dwelling policy coverage A:

Answer 7

Dwelling

Question 8

Dwelling policy coverage B:

Answer 8

Other Structures

Question 9

Dwelling policy coverage C:

Answer 9

Personal Property

Question 10

Dwelling policy coverage D:

Answer 10

Fair Rental Value

Question 11

Dwelling policy coverage E:

Answer 11

Additional Living Expenses

Question 12

DP 1 form includes:

Answer 12

A, B, C and D cvgs

Question 13

DP 2 and 3 form includes

Answer 13

A, B, C, D and E

Question 14

Concerns the dwelling listed in the declarations. This coverage also applies to structures attached to the dwelling, such as an attached garage or toolshed. Items permanently attached to the dwelling, like wall-to-wall carpeting installed over an unfinished floor, are considered part of the dwelling.

Answer 14

Coverage A: (Dwelling)

Question 15

applies to structures on the residence premises that are separate and distinct from the dwelling by a clear space, or connected to the dwelling by only a fence, wall, wire, or related connection.

Answer 15

Coverage B: (Other Structures)

Question 16

Property such as furniture, computers, clothing, and stereo equipment are insured. As in the homeowners policy, there are sublimits for some of this property. In addition, certain property is not covered at all.

Answer 16

Coverage C: (Personal Property)

Question 17

covers the fair rental value of the property, less any expenses—such as the electric bill—that do not continue while any part of the building normally rented or held for rental is uninhabitable.

Answer 17

Coverage D: ( Fair Rental Value)

Question 18

If a covered loss results in the residence premises being unfit to live in. Covers any necessary increase in living expenses to allow the household to maintain its normal standard of living. Examples of these expenses are hotel charges and restaurant bills above the normal cost of groceries.

Answer 18

Coverage E: (Additional Living Expenses)

Question 19

group of perils includes fire, lightning, and internal explosion, all of which are mandatory coverages under this.

Answer 19

DP1 Basic Form 1st group of perils

Question 20

group of perils—extended coverage perils—applies only if a premium is shown in the declarations for these perils. These perils include: windstorm or hail, explosion (replaces internal explosion peril), riot/ civil commotion, aircraft, vehicles, smoke and volcanic eruption.

Answer 20

DP1 Basic Form 2nd group of perils

Question 21

group of perils includes vandalism and malicious mischief and applies if a premium is listed in the declarations for these perils.

Answer 21

DP1 Basic Form 3rd group of perils. Requires 2nd group

Question 22

The DP 2 form includes coverage for all three groups of named perils in the DP 1 form, plus the following named perils for the dwelling, other structures, and personal property losses:

Answer 22

• burglary damage
  •falling objects
  •weight of ice, snow, or sleet
  •accidental discharge or overflow of water or steam from within a plumbing, heating, air-conditioning or sprinkler system, or a household appliance
  •sudden and accidental tearing apart, cracking, burning, or bulging of a steam or hot water heating system, an air-conditioning or sprinkler system, or an appliance for heating water
  •freezing of a plumbing, heating, air-conditioning, or sprinkler system, or a household appliance
  •sudden and accidental damage from artificially generated electrical current

Question 23

form provides open perils coverage, rather than named perils coverage, for the dwelling and other structures. Personal property, however, is still covered on a named perils basis, with the same perils as those covered under the DP 2.

Answer 23

DP 3 Special Form

Question 24

The valuation provision of the DP 3 is the same as that of the DP 2. The dwelling and other structures are covered on a(n) __ basis.

Answer 24

Replacement cost basis.

Question 25

The valuation provision of the DP 3 is the same as that of the DP 2. personal property, awnings, carpeting, household appliances, outdoor equipment and antennas, and nonbuilding structures are covered on a(n) ___ basis.

Answer 25

Actual cash value

Question 26

The general exclusions section of the DP 3 form, the most popular dwelling form, contains X property exclusions: X apply to all property coverages and X apply only to dwelling and other structures coverage.

Answer 26

contains 12 property exclusions
9 apply to all property coverages
3 apply only to the dwelling and other structures coverage

Question 27

The first 9 exclusions apply to all property coverages. These losses are excluded regardless of any other cause contributing concurrently or in any sequence to the loss.

Answer 27

• Ordinance or Law
• Earth Movement
• Water Damage
• Power Failure
• Neglect
• War
• Nuclear Hazard
• Intentional Loss
• Governmental Action

Question 28

Like the HO 3, the DP 3 provides a limited amount of coverage for this peril in the other coverages section.

Answer 28

Ordinance or Law

Question 29

The water damage exclusion includes three categories:

Answer 29

• any loss from flood, surface water, waves, tidal water, overflow of a body of water, or spray from any of these
• any loss from water or waterborne material that backs up through sewers or drains or which overflows from a sump
• any loss from water or waterborne material below the surface of the ground (e.g., an underground spring), including water that exerts pressure on or seeps or leaks through a building, sidewalk, driveway, foundation, swimming pool, or other structure

Question 30

The last 3 exclusions apply only to property described under the dwelling and other structures section.

Answer 30

• Weather Conditions
• Acts or Decisions
• Faulty, inadequate or defective processes, procedures,
  materials or maintenance

Question 31

Dwelling exclusion: contribute in any way with an excluded peril, coverage is denied. Therefore, if extensive rains lead to a mudslide (an excluded peril) damaging the insured’s foundation, coverage is excluded.

Answer 31

Weather conditions

Question 32

Dwelling Exclusion: An example is the failure of the county to notify an insured of the danger of an imminent mudslide.

Answer 32

Acts or decisions

Question 33

Dwelling Exclusion: Examples include: planning, zoning, development, surveying, siting, design, specifications, workmanship, repair, construction, or renovation.

Answer 33

Faulty, Inadequate, or Defective Processes, Procedures, Materials, or Maintenance

Question 34

ISO publishes roughly 50 standard dwelling policy endorsements, 4 of the most popular of which are

Answer 34

• Personal Liability Supplement (DL 24 01)
• Broad Theft Coverage (DP 04 72)
• Automatic Increase in Insurance (DP 04 11)
• Dwelling under construction (DP 11 43)

Question 35

includes medical payments coverage, may be added to the dwelling property policy via endorsement or written as a separate stand-alone policy.

Answer 35

Personal Liability Supplement (DL 24 01

Question 36

provides on-premises and off-premises coverage for theft, attempted theft, and vandalism and malicious mischief that result from a theft. This would include damage to windows or doors by burglars attempting to gain access

Answer 36

Broad Theft Coverage (DP 04 72)

Question 37

form automatically increases the policy limit on the dwelling and other structures by a stated annual percentage, which is prorated throughout the year. In

Answer 37

Automatic Increase in Insurance (DP 04 11)

Question 38

the available amount of insurance on any given date is based on the proportion that the current value of the property bears to the value of the completed property.

Answer 38

Dwelling under Construction (DP 11 43)