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15 Cards in this Set
- Front
- Back
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What is a Dwelling Policy?? |
*Covers dwelling and personal property *DOES NOT include liability insurance unless endorsed *covers the NAMED insured and their spouse (as long as the spouse lives in the same household) *can be completed or under construction *may be owner or tenant occupied *no farm property *may be used to insure mobile homes as long as the home is permanetly located (can only be insured under the basic form) *DOES NOT HAVE to be used exclusively as a residence (Incidental business and professional occupancies are allowed. These oeprations muct be conducted by the insured, must provide service rather than sales, and must involve no more than 2 people working on the premises at one time *no more than 4 units |
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What types of DWELLING PROPERTY COVERAGES ARE AVAILABLE?? |
1. Basic (DP-1) 2. Broad (DP-2) 3. Special (DP-3)
The Coverages are:
*Coverage A-Dwelling *Coverage B-Other Structures *Coverage C-Personal Property *Coverage D-FAir Rental Value |
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What is Coverage A?? |
This includes *Dwelling *Structures attached to the dwelling *Materials and supplies used in construction or repair of the dwelling or other structures at that location |
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What is Coverage B?? |
OTHER STRUCTURES (DETACHED STRUCTURES) *Also called dwelling extensions or appurtenant structures *Buildings on the premises that are separated by clear spaces *Buildings may not be used for commericial, manufacturing, or farming purposes *provides that up to 10% of the coverage A limit may be used to cover losses to other structures |
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What is Coverage C-Personal Property |
*Covers the insured personal property at the described location *provides automatic removal coverage (from palce to place within the same state)
PERSONAL PROPERTY NOT INCLUDED:
-money -coins -paper records -credit cards, debit cards -animals, birds, fish -aircraft -motor vehicles -boats, other than canoes -land |
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What is Coverage D-Fair Rental Value |
This is available if a covered property loss to the dwelling or other structures makes the building uninhabitable and the insured cannot collect the rent they would have been able to receive had a loss not occured |
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What is Coverage E- ALE (Additional Living Expenses)
ONLY IN BROAD FORM (DP-2) and SPECIAL FORM (DP-3) |
This pays for additional living expenses the insured incurs after a covered loss, including reasonable motel, dining, laundry, and transportation expenses. These are covered for the time needed to repair or replace the damaged property or for the insured to become settled elsewhere in permanent quarters.
*if a CIVIL AUTHORITY prohibits the use of the insured property bc of a covered peril damaging a neighbouring location, payments arre limited to a max of 2 weeks |
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Describe DP-1 (Basic Form) |
*Named Peril *Losses at ACV *Covers loss by Fire, Lightning, and internal explosion
EXTENDED COVERAGE AVAILABLE (if added as an endorsement and extra premium is paid)
WHARVES and VAndalism and Malicious Mischief
*Wind (No coverage for awning,signs, antenna) *Hail (same as above) *Aircraft&Vehicles (no cov for fences, driveways, or walks) *Volcanic Eruption(no cov for earthquakes) *Explosion *Smoke(no cov from smoke from industrial operations or from fireplace) |
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Describe DP-2 (Broad Form) |
*Named Peril *Losses on RC, as long as the insured has coverage on the dwelling equal to 80% of the RC *Automastically covers alll the standard perils available on the DP-1, extended coverage perils (WHARVES), and V&MM *Also includes (BIG AFFECT) -Burgler damage(no cov if vacant for 30 days) -Ice,snow, or sleet -Glass Breakage(no cov if vancant for 30 days) -Accidental discharge of water (not flood) -Falling Objects -Freezing of pipes -Electrical Damage(no cov for damage to tubes or transistors) -Collaspe -Tearing Asunder
*Policy of choice for Rental Properties |
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Describe DP-3 (Special Form) |
*Open Peril for unless excluded for dwelling and other structures *Personal Property is covered for Broad name perils (DP-2) *Covers the loss of the dwelling on a RC basis *THEFT OF PROPERTY THAT IS PART OF THE DWELLING IS COVERED *Excludes: Insects, birds, vermin, domestic animals, gradual and expected losses, theft of property NOT a part of the building, or theft in or to a dwelling under construction, pollutants, faulty planning, design, or materials |
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What are the differences between the Broad (DP-2) annd Special (DP-3) form?? |
1. Theft of property that is part of the dwelling or other structures is included 2. The coverage for accidental discharge or overflow of water is expanded to cover loss from these off the insured location in the Special (DP-3) form 3. There is no exclusion to antennas, outdoor equipment, fences, or awnings from the peril of falling objects |
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What other coverages are included in ALL 3 Dwelling Forms?? |
1. Removal-the policy will pay for loss to property removed from the insured premises when threatned by a covered peril. *The Basic Form (DP-1): 5 Days *The Special Form (DP-2): 30 Days 2. Debris Removal Expense-covers resonable removal expense after a covered loss has occured. If the amt of the loss plus the cost of the removal exceeds the policy limit then an addt 5% of the policy limit may be added 3. Reasonable cost for repairs 4. Tenants Improvements, alterations, and additions 5. Worldwide Personal Property Coverage-may apply up to 10% of the personal property limit to cover property away from the premises 6. Rental Value and ALE-under the DP-1 Basic, rental value coverage only. Dp-2 and Dp-3 has rental value and ale coverage 7. Fire Department Service Charge- up to 500.00 will be paid, no deductable |
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What are the General Exclusions that are common to all 3 Forms |
*Earth Movement *Water Damage caused by flood, below surface water and water that backs up from a sewer or drain *Power Failure-not covered if power failure occurs away from the insured premises *War *Nuclear Hazard *Intentional Loss |
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What types of Endorsements can be added to the Dwelling Policies |
1. Broad Theft Coverage-bc there is no coverage to theft of PERSONAL PROPERTY in the Dwelling forms. Includes money,watercraft&trailers, jewelry, furs, firearms, silverwear, and gold wear. Does NOT include animals, birds, fish, credit cards, debit cards, property in transit, motor vehicles. 2. Personal Liability (Coverage L) up to 100,000 3. Medical Payments to others (Coverage M) up to 1,000 4. Automatic Increase in Insurance 5. Dwelling Under Construction 3. |
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DEscribe the loss settlements |
DP-1, DP-2, DP-3, Personal Property are settled at ACV DP-1, Dwelling and Other Structures are settled at ACV DP-2&DP-3, Dwelling and other structures losses are settled at RCV (as long as 80% co-insurance is met) |
