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 premises covered at 10%
D - fair rental value
E - additional living expense; included with DP-2 and DP-3, can be added to DP-1 with endorsement

Question 4

Other Coverages (automatically included)

Answer 4

• Debris removal
• Property removed - 5 days all perils
• Reasonable repairs
• Renters improvements (10% of Coverage C)
• Fire dept service charge - $500, no deductible

Question 5

Other Coverages: DP-2 and DP-3

Answer 5

• All basic other coverages
• Trees, shrubs, and plants (max $500 each; total
  5% of Coverage A)
• Collapse - cause by a covered peril
• Glass
• Ordinance or law (10% of Coverage A)

Question 6

Claim Values

Answer 6

• Personal property - ACV
• Dwelling (DP-2 and DP-3) - replacement (80%)

Question 7

DP-1: Basic

Answer 7

Fire, lightning, and internal explosion

Question 8

DP-1

Answer 8

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

Question 9

DP-2: Broad

Answer 9

• All of DP-1 available perils (fire, lightning, internal explosion, WCSHAVVER, and V&MM)
• Plus (BIGAFFECT)

Question 10

BIG AFFECT

Answer 10

• Burglar damage
• Ice and snow weight
• Glass breakage
• Accidental discharge or overflow of water
• Falling objects
• Freezing pipes
• Electrical damage
• Collapse
• Tearing asunder

Question 11

DP-2: Broad Exclusions

Answer 11

• 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 days

Question 12

DP-3: Special

Answer 12

• Open perils: dwelling and other structures
• Broad perils: personal properties
• Excluded perils: intentional damage, theft, freezing of plumbing, wear and tear, foundations)

Question 13

General Exclusions in All Dwelling Policies

Answer 13

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

Question 14

Loss Valuation

Answer 14

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

Question 15

Personal Liability Supplements

Answer 15

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

Question 16

Coverage M - medical payments

Answer 16

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

Question 17

Additional (Supplementary) Coverages - BAILED

Answer 17

• Bonds
• Aid
• Interest
• Loss of earnings
• Expenses
• Defense

Question 18

Residential Theft Coverage

Answer 18

• Not automatically included in dwelling policy
• On and off premises
• Broad: owner occupied
• Limited: not owner occupied

Question 19

Exclusions

Answer 19

• 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 20

Special Limits

Answer 20

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

Question 21

Endorsements

Answer 21

• 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