Ch 3 - Dwelling Policy

The dwelling property policy, developed bythe ISO to be used primarily as a property coverage form, can be used to insure the ___ only, ___ only, orboth.

Basic, broad, and special form coverage.

Up to ___ roomers or boarders;

Up to ___ residential units;

-Properties in the course of ___;

-Owner occupied, tenant occupied or both;

-___ on the basic form only, if they contain no more than one apartment, and are located at a permanent location listed in the policy;

A Dwelling Property policy can be purchased to insure properties solely used for residential purposes in the following situations:

-Not designed as farm property.

What are the 7 parts of a DP form?

The basic dwellingform, DP-01, is a ___ peril coverageform.

What perils are included in the base form for DP1?

What acronym can be usedto help remember the extended coverage perils?

If the extended coverage perils are insured onthe policy, the insured also may add coverage for ___.

VMM does NOT cover glass breakage or safety glazing material thatis part of the building. However, a vandalized window would not becovered, but decorative ____ would be.

VMM ___ damage to the building resulting from theft orburglary.

However, the actual property stolen ____ covered.

There is no VMM coverage if, preceding the loss, theinsured's premises has been vacant for more than ___ immediately before the loss occurs.

The broadform, DP-0­2, expands the causes of loss insured underthe basic form with extended coverage perils, and vandalism or maliciousmischief purchased.

The broad form further expands coverage for the followingperils:

What are the 7 additional broad form perils?

What acronym can beused to remember the broad form coverage perils?

The broad form also includes which other coverages?

(There are 3)

Lawns, trees, etc., an additional amount of insurance in the broad form, is limited to a maximum of ___ per tree, shrub, or plant, and amaximum per loss of 5% of the amount of coverage on the dwelling.

The broad & special forms cover collapse of abuilding or a part of a building if it is caused by what?

(There are 4 causes)

Unlike the basic and broad forms, which arenamed peril forms, the special form (DP-3) is an ____ form.

What are the FOUR primary differencesbetween the broad form DP­2 and special form DP­3 coverages?

What is an ice dam?

What are the 4 core property coverages included in all 3 policy forms?

____ (Coverage E) is not included in the basic form but maybe attached by endorsement.

Because fair rental value (Coverage D), andadditional living expense (Coverage E) are ___ coverages, they may only beadded if one of the direct property coverages is written.

A standard deductibleof ___ applies to all property coverages except Coverage D & CoverageE

CoverageA – Dwelling defines what is included for coverage as a dwelling. What property is NOT covered?

CoverageB – Other Structures covers other separate structures at the same location,such as detached garages and other outbuildings (e.g., sheds or fences).

What 4 items that are NOT covered?

What does CoverageC – Personal Property NOT cover?

(There are 10 items)

When does CoverageD – Fair Rental Value apply?

If a civil authority prohibits use of theinsured property, payment for the losswill be covered for up to ___.

CoverageE – Additional Living Expenses only is available if ___ or ___ dwelling coverage iswritten.

Like fair rental value, Coverage E is is an ___ coverage, so the policy istriggered only when a direct damage claim (A, B, C) is covered by the policy.

What does Coverage E pay for?

For Coverages D and E, the expiration of the policy will ___ thepayment of an existing covered claim.

All 3 coverage forms, (DP­1, DP­2, & DP­3),include EIGHT other coverages that are extensions of the major coverages A, B, C, D,and E.

What are they?

1. Other Structures:

The insured may elect to apply up to ___ of ___ to cover otherstructures on the insured premises.

1. Other Structures:

In the basic form, this is ___ insurance and will reduce the amount available under Coverage A in case of a concurrent loss.

In the broad and special forms, coverage is provided automatically and considered ___ insurance.

2. Debrisremoval

Provides coverage for reasonable costs to removedebris after a covered loss.

This includes the expense to remove ash or dustcaused by volcanic eruption.

Coverage ____ an additional amountof insurance

3.Improvements, alterations, and additions

If the insured is a tenant, up to ___ may beapplied to loss or damage to improvements, alterations, or additions acquiredby the insured tenant.

3. Improvements, alterations, and additions

In the DP­1, this ___ considered an additional amount of insurance and will not increase the total amount of insurance payable in case of a loss.

In the DP­2 and DP­3, this ___ an additional amount of insurance and will not reduce the Coverage C limit for the same loss.

4.Worldwide coverage

The insured may elect to apply up to ___ to pay for losses topersonal property away from the premises while anywhere in the world.

Is Worldwide coverage considered an additional amount of insurance?

What items does worldwide coverage NOT apply to?

5. Rentalvalue and additional living expense:

Up to ___ limit ofliability may be used for loss of both fair rental value andadditional living expense.

6.Reasonable repairs

Reasonable costs incurred by the insured forrepairs necessary to protect property from ___ is also covered.

This ___ an additional amount of insurance.

7.Property removed:

When will the policy will pay for loss/damage toproperty removed from the insured premises?

7. Property removed:

Perils insured against are converted to ___ coverage during the process of removal.

7. Property removed:

The basic form policy provides coverage for

____ while the broad and special forms provide ___ of coverage.

8. Firedepartment service charge

Up to ___ will bepaid for costs incurred by the insured because of an agreement to pay the firedepartment if they respond to a fire at the described premises.

Thiscoverage ___ considered an additional amount of insurance, and no deductibleapplies to this coverage.

What FOUR other coverages are included onlyin the broad and special forms?

Other coverages: Breakage of glass:

There is nocoverage for glass breakage if the building or structure has been vacantfor a certain number of days but this limitationdoes NOT apply to damage caused by ___.

Other coverages: Ordinance or law:

The broad and special form policies allow up to ___ (or B ifthere is no limit for ____).

Other coverages: Ordinance or law:

What is coverage provided for?

What general exclusions (GE) are found in all 3 dwelling forms?

(There are 9)

GE: Ordinance or law:

This general exclusion conveys the overallintent of the form, and narrows thefocus of covered claims to ___?

GE: Earth movement:

What IS an exception for this general exclusion?

GE: Power failure:

What IS an exception for this general exclusion?

GE: Governmental action:

What does this refer to?

GE: Governmental action:

What IS an exception to this general exclusion?

Besides the GE found in alldwelling forms, what are the special form's following additional exclusionsthat apply only to Coverages A and B?

Conditions: loss settlement:

Under the basic form, how are property losses settled?

Under the broad& special forms, the following loss settlement conditions apply:

Dwelling & other structures insuredto at least ___ of the replacement cost atthe time of the loss are covered on a replacement cost basis

Under the broad & special forms, the following loss settlement conditions apply:

Assuming this minimum is covered, the insured will receive no more than what?

(there are 3 options)

Under the broad & special forms, the following loss settlement conditions apply:

If the property is insured for lessthan 80% of replacement cost at the time of the loss, the policywill pay the greater of what?

(There are two options)

Conditions: loss settlement:

The insured may disregard the replacement costprovisions and make a claim for only the actual cash value of the buildings.

This election needs to be made within ___ of the loss.

Condition: Suitagainst the insurer:

No suit may be brought against the insurerunless the insured has fully complied with all policy conditions and the action is started within ___ of the date ofthe loss.

Condition: Insurer'soption to repair or replace:

The insurer has the option to repair or replaceany part of damaged property with like property by providing written notice tothe insured within ___ from receiving a signed,sworn proof of loss.

Conditions: Losspayment:

Losses will be paid within ___ ofreceiving proof of loss and coming to an agreement with the insuredas to the amount payable.

Conditions: Cancellationand nonrenewal:

___ advance noticeis required if the policy is canceled for nonpayment of premium or for any other reason if within the first 60 days ofcoverage.

Conditions: Cancellation and nonrenewal:

After 60 days, or if the insurer plans to nonrenew coverage, at least ___ notice of cancellation is required.

The insurer can cancel the policy midterm only because of misrepresentation of a material fact or if the risk has changed substantially from when it was first insured.

Conditions: Volcaniceruptions:

All volcanic eruptions occurring within ____ of the initial eruption will be considered one occurrence.

What are the most common optional endorsements used with the dwelling policy?

(There are 4)

Oregon Dwelling policies issued in Oregon mustinclude the ____ (DP0136).

(These are identical to those stated in HO 01 36)

What does the automaticincrease in insurance endorsement do?

T or F:

The automatic increase in insurance endorsement may be added to DP1?

What will the Broad theft coverage endorsement cover?

What is the only theft coverage provided in any dwellingpolicy forms?

T or F:

Can the broad theft endorsement provide both on­-premises and off-­premisescoverage?

Broad theft coverage endorsement :

Although there is no off­-premises coverage for property at a newly acquiredprincipal residence, the on­-premises limit will apply automatically for ___, including while the property is in transit to the new location.

For Dwelling ('02) Policy,the following coverage limits apply:

$___ for money, coins, gold, etc.

$___ for deeds, passports, etc.

$___ for watercraft & trailers

$___ for jewelry, watches, furs, etc.

$___ for firearms

$___ for gold/silver-­plated ware, tea sets, etc.

Endorsement: Dwelling Under Construction

What is the limit of liability for a dwelling underconstruction based on?

Endorsement: Dwelling Under Construction

At the time of loss, the applicable limit is a percentage of the provisional limit, based on what?

Unlike the homeowners policy, the dwelling policy does not include any coverage for personal liability.

However, the ___ can be added to the dwelling policy or written as aseparate policy.

What are the 3 coverages included in personal liability supplement endorsements?

Personal liability provides coverage for bodilyinjury or property damage to third parties that is caused by the insured'snegligence or a condition of the insured's premises.

Medicalpayments to others (coverage M) has a limit of ___ per person.

Medical payments coverage pays for necessarymedical expenses incurred by persons other than an insured, who are injured onthe insured's premise or due to an insured's activities off premise.