Unit Six Dwelling Insurance

Question 1

What is a dwelling policy?

Answer 1

Unique from a homeowners policy, it is not required to be on your occupied and covers risks like rental property, older homes, and hunting cabins

Question 2

What does a dwelling policy not automatically cover?

Answer 2

The peril of theft or personal liability or residential theft coverage

Question 3

What else are dwelling policies called?

Answer 3

Monoline policies because they insure only property

Question 4

Our farmed dwellings eligible for coverage?

Answer 4

No

Question 5

What makes you eligible for a dwelling policy?

Answer 5

•1-4 unit dwelling with borders
• vacation dwellings
• rental dwellings
• dwellings under construction(endorsement)
• mobile homes(endorsement)

Question 6

What is property coverage A cover?

Answer 6

The dwelling

Question 7

What does property coverage B cover?

Answer 7

Other structures(detached from main dwelling)
10% of coverage A

Question 8

What does property coverage C cover?

Answer 8

Personal property on premises
-If off premises it’s covered up to 10% of coverage C

Question 9

What does property coverage D cover?

Answer 9

Fair rental value

Question 10

What does property coverage E cover?

Answer 10

Additional living expenses

Coverage E is included with DP – 2 and DP – 3. It can be added to DP – 1 by endorsement.

Question 11

Other coverage automatically included:DP-1

Answer 11

•Debris removal
• property removed(5days)
• reasonable repairs
• tenants improvements (10% of coverage C)
• fire department service charge-$500 no deductible
• worldwide, personal property(10% of coverage C)

Question 12

Other coverages automatically included: DP-2 & DP-3

Answer 12

• all basic other coverages
• tree, shrubs, and plants(maximum of $500 each ,total 5% of coverage A)
• collapse-caused by a covered peril
• glass
• ordinance or law (10% of coverage A)
• property removed - 30 days

Question 13

How is a claim value calculated with a DP – 1 policy?

Answer 13

Replacement cost-depreciation

Question 14

How is a loss handled with a DP – 2 and DP-3 policy?

Answer 14

replacement

Question 15

What are the following perils that are automatically covered by? DP-1?

Answer 15

Fire
Lightning
Removal

Question 16

What is not automatically covered in a dwelling policy

Answer 16

Extended coverage (EC) perils are not automatically included, but can be added for an additional premium [WCSHAVVER and V&MM]

Question 17

What is covered in a DP-2 broad form?

Answer 17

• all of DP-1 available perils (fire, lightning, removal, WCSHAVVER, and V&MM)
•plus BIG AFFECT

Question 18

DP-2 broad peril exclusions

Answer 18

• weight of ice, snow or falling objects on awnings fences, patio, swimming pools, docs, and retaining walls
• accidental discharge of water from continuously leaking
• flood
• burglary if property vacant> 60 consecutive days

Question 19

What is covered under DP-3 special form

Answer 19

• open perils-dwelling and other structures
• broad perils-personal property

Question 20

What is excluded from a DP-3 special form?

Answer 20

• intentional damage
• theft
• freezing or plumbing if unoccupied and care not taken
• wear and tear
• foundations

Question 21

List the seven general exclusions in all dwelling policies

Answer 21

• ordinance or law
• earthquake
• flood
• war
• nuclear
• intentional losses
• government seizure

Question 22

List the conditions concerning how losses will be paid otherwise known as loss valuations

Answer 22

• loss settlement
• our option
• deductible
• pair or set
• loss payment
• other insurance
• recovered property

Question 23

What is coverage L?

Answer 23

Personal liability supplement that provides coverage for damage that insured becomes legally obligated to pay because of an occurrence to which the coverage applies that causes bodily injury or property damage on and off premises to others

Question 24

What is coverage L?

Answer 24

Personal liability supplement that provides coverage for damage that insured becomes legally obligated to pay because of an occurrence to which the coverage applies that causes bodily injury or property damage on and off premises to others

Question 25

What is coverage M?

Answer 25

Personal liability supplement that covers medical payments, medical bills of others, and the insured does not have to be legally liable for coverage to apply either on or off the premises within three years of an accident

Question 26

Exclusions to coverage L and coverage M

Answer 26

• war
• losses that are expected or intended by the insured
• business pursuits, or the rendering of or failure to render professional services
• transmission of a communicable disease by an insured
• sexual molestation, corporal, punishment or physical or mental abuse
• possession of controlled substances, other than legitimate use of prescription drugs
• rental of a premises that would not be eligible for coverage under the policy
• a premises owned or rented to insured or rented by the insured to others that is not considered an insured location
• owner maintenance, use loading or unloading of types of watercraft, aircraft or vehicles

Question 27

List the additional exclusions that only apply to coverage L

Answer 27

• for damages to property owned by an insured
• For damage to property rented to occupied or used by or in the care of insured unless the loss is caused by fire smoke or explosion
• for losses that would be covered under a Worker’s Compensation or similar law
• for loss assessments charged against the insured as a member of an association, corporation or community of property owners
• assumed under contract or agreements
• For injury to the insured or any relative or minor who resides in the same household

Question 28

How can you add a residential theft coverage?

Answer 28

By endorsement

Question 29

What’s the following property that is not covered

Answer 29

• animals
• credit
• property in mail
• aircraft
• other insurance property
• tenants property not related to insured
• business property
• property in custody of others
• motor vehicles unless disabled

Question 30

List of three other endorsements

Answer 30

• automatic increase to insurance
• dwelling under construction
• mobile home