Unit 6 - Dwelling Insurance Flashcards
Dwelling
•Unique from homeowners policy
•Not required to be owner occupied
•Covers risks like rental property, older homes, and hunting cabins
Dwelling Policy Eligibility
•1 to 4 unit dwelling with boarders
•Vacation dwellings
•Rental dwellings
•Dwellings under construction (endorsement)
•Mobile homes (endorsement)
•Farm dwellings NOT eligible
Dwelling Property Coverages
•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.
OTHER Dwelling coverages
(Automatically Included)
•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
Other coverages: DP-2 and DP-3
•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)
Dwelling Claim Values
•Personal property - ACV
•Dwelling (DP-2 and DP-3) - replacement
>Required to carry 80%
DP-1
•Only insures fire, lightning, and internal explosion automatically
•EC—WCSHAVVER (additional premium)
•V&MM—if has EC (additional premium)
DP-2: Broad
•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
DP-2 Broad Exclussions
•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
DP-3 Special
•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
General Exclusions in All Dwelling Policies
•Ordinance or law
•Earthquake
•Flood
•War
•Nuclear
•Intentional losses
•Government seizure
Loss Valuations
•Loss settlement
•Our option
•Deductible
•Pair or set
•Loss payment
•Other insurance
•Recovered property
Personal Liability Supplements
•Coverage L — personal liability
•At fault
•Bodily injury to others
•Property damage to others
•On and off premises
Coverage M-Medical payments
•Medical and bills of others
•No fault
•3 years
•On and off premises
Additional (supplementary) Coverages - BAILED
•B—Bonds
•A—Aid
•I—Interest
•L—Loss of earnings
•E—Expenses
•D—Defense
Residential Theft Coverage
•Not automatically included in dwelling policy
•On and Off premise
•Broad—owner occupied
•Limited—not owner occupied
Residential Theft Coverage-Exclusions
•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)
Special Limits
•Apply to certain classes of property
•Limit is total of each category
Endorsements
•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
