Unit 6 - Dwelling Insurance

Question 1

Dwelling

Answer 1

•Unique from homeowners policy
•Not required to be owner occupied
•Covers risks like rental property, older homes, and hunting cabins

Question 2

Dwelling Policy Eligibility

Answer 2

•1 to 4 unit dwelling with boarders
•Vacation dwellings
•Rental dwellings
•Dwellings under construction (endorsement)
•Mobile homes (endorsement)
•Farm dwellings NOT eligible

Question 3

Dwelling Property Coverages

Answer 3

•A—dwelling
•B—other structures (10% of coverage A)
•C—personal property on premises; off premise covered at 10%
•D—fair rental value
•E—additional living expense
>coverage E is included with DP-2 and DP-3. It can be added to DP-1 by endorsement.

Question 4

OTHER Dwelling coverages
(Automatically Included)

Answer 4

•Debris removal
•Property removed—5 days all perils
•Reasonable repairs
•Renters improvements (10% of coverage C)
•Fire Department service charge—$500, no deductible
•Worldwide personal property—10% of coverage C

Question 5

Other coverages: DP-2 and DP-3

Answer 5

•All basic other coverages
•Trees, shrubs, and plants
-Maximum of $500 each
-Total-5% of coverage A
•Collapse-cause by a covered peril
•Glass
•Ordinance or law (10% of coverage A)
•Removal-30 days (5 days for DP-1)

Question 6

Dwelling Claim Values

Answer 6

•Personal property - ACV
•Dwelling (DP-2 and DP-3) - replacement
>Required to carry 80%

Question 7

DP-1

Answer 7

•Only insures fire, lightning, and internal explosion automatically
•EC—WCSHAVVER (additional premium)
•V&MM—if has EC (additional premium)

Question 8

DP-2: Broad

Answer 8

•All of DP-1 available perils (fire, lighting, internal explosion, WCSHAVVER, and V&MM)
•Plus (BIGAFFECT)
>Burgler damage
>Ice and snow weight
>Glass breakage
>Accidental discharge or overflow of water
>Falling objects
>Freezing pipes
>Electrical damage
>Collapse
>Tearing asunder

Question 9

DP-2 Broad Exclussions

Answer 9

•Weight of ice, snow, or falling objects on awnings, fences, patios, swimming pools, docks, and retaining walls
•Accidental discharge of water from continuous leaking
•Flood
•Burglary if property vacant > 60 consecutive days

Question 10

DP-3 Special

Answer 10

•Open perils-dwelling and other structures
•Broad perils-personal property
•Excludedperils:
-Intentional damage
-Theft
-Freezing of plumbing (if unoccupied & care not taken)
-Wear and tear
-Foundations

Question 11

General Exclusions in All Dwelling Policies

Answer 11

•Ordinance or law
•Earthquake
•Flood
•War
•Nuclear
•Intentional losses
•Government seizure

Question 12

Loss Valuations

Answer 12

•Loss settlement
•Our option
•Deductible
•Pair or set
•Loss payment
•Other insurance
•Recovered property

Question 13

Personal Liability Supplements

Answer 13

•Coverage L — personal liability
•At fault
•Bodily injury to others
•Property damage to others
•On and off premises

Question 14

Coverage M-Medical payments

Answer 14

•Medical and bills of others
•No fault
•3 years
•On and off premises

Question 15

Additional (supplementary) Coverages - BAILED

Answer 15

•B—Bonds
•A—Aid
•I—Interest
•L—Loss of earnings
•E—Expenses
•D—Defense

Question 16

Residential Theft Coverage

Answer 16

•Not automatically included in dwelling policy
•On and Off premise
•Broad—owner occupied
•Limited—not owner occupied

Question 17

Residential Theft Coverage-Exclusions

Answer 17

•Animals
•Credit cards
•Property in mail
•Aircraft
•Other insurance property
•Tenant’s property (not related to insured)
•Business property
•Property in custody of others
•Motor vehicles (unless assisting disabled)

Question 18

Special Limits

Answer 18

•Apply to certain classes of property
•Limit is total of each category

Question 19

Endorsements

Answer 19

•Automatic increase in insurance - automatically increases dwelling and other structure coverage at renewal (specified percentage)

•Dwelling under construction - named insured must be intended occupant

•Mobile home - permanent foundation