Chapter 4 Dwelling Policy || 100% Actual Answers.
Dwelling Program Eligibility
Dwelling Coverage Forms correct answers Dwelling Policies
Dwellings must be used principally for residential dwelling purposes & cannot have more than 4
dwelling units or more than 5 roomers or boarders. Mobile homes are eligible if they are
permanently affixed to a foundation, but only on the Basic Form of coverage (DP-1). Incidental
business occupancies, such as schools, studios, & offices, are permitted if the primary use of the
dwelling is a personal residence. Dwellings located on farms on NOT eligible. correct answers
Dwelling Program Eligibility
DP-1 (Basic Form)
DP-2 (Broad Form)
DP-3 (Special Form) correct answers Dwelling Coverage Forms
The perils insured against are fire, lightning & internal explosion. If an additional premium is
paid for Extended Coverage (EC), the following perils are also included: windstorm or hail,
explosion, riot or civil commotion, aircraft, vehicles, smoke, volcanic eruption. The peril of
vandalism or malicious mischief (VMM) may also be included with the payment of an additional
premium. EC & VMM coverages, if purchased, must appear on the declarations. If VMM is
purchased, it excludes loss for vandalism in vacant buildings. Losses to the dwelling, other
structures & contents are paid on an actual cash value basis. correct answers DP-1 (Basic Form)
The perils insured against the DP-1 perils, the EC perils, VMM & the following:
Damage by Burglars
Falling Objects
Weight of ice, snow or sleet
Accidental discharge or overflow of water or steam
Sudden & accidental tearing apart, cracking, burning or bulging
Freezing
Sudden & accidental damage from artificially generated electrical current
The damage by burglars peril includes damage to the covered property caused by the burglar, but
not theft of property. The Vehicle peril does not include loss to a fence, driveway or walkway
caused by a vehicle owned or operated by the insured. The Smoke peril does not include loss
cause by smoke from agricultural smudging or industrial operations. Losses to the dwelling &
other structures are paid on a replacement cost basis, & losses to personal property are paid on an
actual cash value basis. correct answers DP-2 (Broad Form)
This does not include theft coverage nor does it apply if the dwelling was vacant 60 or more
consecutive days immediately before a loss. correct answers Damage by Burglars
Damage to exterior of the building must take place for coverage to apply to contents inside the
building. correct answers Falling Objects
, This doesn't apply to awnings, patios, pavements, pools, etc. correct answers Weight of ice, snow
or sleet
Must occur from within a plumbing, heating, air conditioning, or automatic fire protective
sprinkler system, o household appliance. This doesn't apply to constant or repeated seepage or
leakage over a period of time or if the dwelling was vacant 60 or more consecutive day
immediately before a loss. correct answers Accidental discharge or overflow of water or steam
Must occur to a steam or hot water heating system, air conditioning system, or automatic fire
protective system or household appliance. correct answers Sudden & accidental tearing apart,
cracking, burning or bulging
Must occur to a plumbing, heating, air conditioning or automatic fire protective sprinkler system
or household appliance, Applies only if the insured used reasonable care to maintain heat in the
building OR shut off the water supply & drained all systems of water. correct answers Freezing
The peril is caused by man-made electricity or power surge & does NOT apply to damage to
tubes,transistors, electronic components, or circuitry contained in appliances, fixtures,
computers, etc. correct answers Sudden & accidental damage from artificially generated
electrical current
Coverage for the dwelling & other structures is provided on an open perils basis, meaning
coverage is provided for all causes of loss except for those specifically excluded. In addition to
the policy's General Exclusions, the ______ specifically excludes the following losses under
Coverages A & B: Collapse, except for coverage provides by Other Coverages. Freezing,
thawing, or weight of water or ice on patios, fences, swimming pools, foundations, piers, docks,
retaining walls, etc. Theft of property not part of a covered building or structure. Theft in or to a
dwelling or structure under construction. Wind, hail, ice, snow or sleet to outdoor radio & tv
antena & aerials, trees, shrubs, plants & lawns. VMM, theft or attempted theft & any ensuing
loss if the dwelling has been vacant for more than 60 consecutive days immediately before a
loss. Constant or repeated seepage or leakage of water or steam over a period of ti correct
answers DP-3 (Special Form)
Any of the following: wear & tear; deterioration; mechanical breakdown; smog, rust or
corrosion; smoke from agricultural smudging or industrial operations; pollution; settling,
cracking, bulging, or expansion of foundation, walls, floors, pavement, or patios; & birds,
vermin, rodents, insects, or domestic animals. Theft of property that is part of the dwelling or
other structures is covered as long as the dwelling or other structures have not been vacant for
more than 60 days. Theft of contents is still excluded unless coverage has been added by
endorsement. Personal property is covered for Broad Form (DP-2) named perils. Losses to the
dwelling & other structures are paid on a replacement cost basis, & losses to personal property
contents are paid on actual cash value basis to the insured. correct answers DP-3 (Special Form)
DP-1 Perils Insured Against correct answers Fire, lightning, internal explosion, optional with
endorsement, wind, hail, aircraft, riot or civil commotion, vehicles, volcanic eruption, explosion,
smoke, VMM
Dwelling Program Eligibility
Dwelling Coverage Forms correct answers Dwelling Policies
Dwellings must be used principally for residential dwelling purposes & cannot have more than 4
dwelling units or more than 5 roomers or boarders. Mobile homes are eligible if they are
permanently affixed to a foundation, but only on the Basic Form of coverage (DP-1). Incidental
business occupancies, such as schools, studios, & offices, are permitted if the primary use of the
dwelling is a personal residence. Dwellings located on farms on NOT eligible. correct answers
Dwelling Program Eligibility
DP-1 (Basic Form)
DP-2 (Broad Form)
DP-3 (Special Form) correct answers Dwelling Coverage Forms
The perils insured against are fire, lightning & internal explosion. If an additional premium is
paid for Extended Coverage (EC), the following perils are also included: windstorm or hail,
explosion, riot or civil commotion, aircraft, vehicles, smoke, volcanic eruption. The peril of
vandalism or malicious mischief (VMM) may also be included with the payment of an additional
premium. EC & VMM coverages, if purchased, must appear on the declarations. If VMM is
purchased, it excludes loss for vandalism in vacant buildings. Losses to the dwelling, other
structures & contents are paid on an actual cash value basis. correct answers DP-1 (Basic Form)
The perils insured against the DP-1 perils, the EC perils, VMM & the following:
Damage by Burglars
Falling Objects
Weight of ice, snow or sleet
Accidental discharge or overflow of water or steam
Sudden & accidental tearing apart, cracking, burning or bulging
Freezing
Sudden & accidental damage from artificially generated electrical current
The damage by burglars peril includes damage to the covered property caused by the burglar, but
not theft of property. The Vehicle peril does not include loss to a fence, driveway or walkway
caused by a vehicle owned or operated by the insured. The Smoke peril does not include loss
cause by smoke from agricultural smudging or industrial operations. Losses to the dwelling &
other structures are paid on a replacement cost basis, & losses to personal property are paid on an
actual cash value basis. correct answers DP-2 (Broad Form)
This does not include theft coverage nor does it apply if the dwelling was vacant 60 or more
consecutive days immediately before a loss. correct answers Damage by Burglars
Damage to exterior of the building must take place for coverage to apply to contents inside the
building. correct answers Falling Objects
, This doesn't apply to awnings, patios, pavements, pools, etc. correct answers Weight of ice, snow
or sleet
Must occur from within a plumbing, heating, air conditioning, or automatic fire protective
sprinkler system, o household appliance. This doesn't apply to constant or repeated seepage or
leakage over a period of time or if the dwelling was vacant 60 or more consecutive day
immediately before a loss. correct answers Accidental discharge or overflow of water or steam
Must occur to a steam or hot water heating system, air conditioning system, or automatic fire
protective system or household appliance. correct answers Sudden & accidental tearing apart,
cracking, burning or bulging
Must occur to a plumbing, heating, air conditioning or automatic fire protective sprinkler system
or household appliance, Applies only if the insured used reasonable care to maintain heat in the
building OR shut off the water supply & drained all systems of water. correct answers Freezing
The peril is caused by man-made electricity or power surge & does NOT apply to damage to
tubes,transistors, electronic components, or circuitry contained in appliances, fixtures,
computers, etc. correct answers Sudden & accidental damage from artificially generated
electrical current
Coverage for the dwelling & other structures is provided on an open perils basis, meaning
coverage is provided for all causes of loss except for those specifically excluded. In addition to
the policy's General Exclusions, the ______ specifically excludes the following losses under
Coverages A & B: Collapse, except for coverage provides by Other Coverages. Freezing,
thawing, or weight of water or ice on patios, fences, swimming pools, foundations, piers, docks,
retaining walls, etc. Theft of property not part of a covered building or structure. Theft in or to a
dwelling or structure under construction. Wind, hail, ice, snow or sleet to outdoor radio & tv
antena & aerials, trees, shrubs, plants & lawns. VMM, theft or attempted theft & any ensuing
loss if the dwelling has been vacant for more than 60 consecutive days immediately before a
loss. Constant or repeated seepage or leakage of water or steam over a period of ti correct
answers DP-3 (Special Form)
Any of the following: wear & tear; deterioration; mechanical breakdown; smog, rust or
corrosion; smoke from agricultural smudging or industrial operations; pollution; settling,
cracking, bulging, or expansion of foundation, walls, floors, pavement, or patios; & birds,
vermin, rodents, insects, or domestic animals. Theft of property that is part of the dwelling or
other structures is covered as long as the dwelling or other structures have not been vacant for
more than 60 days. Theft of contents is still excluded unless coverage has been added by
endorsement. Personal property is covered for Broad Form (DP-2) named perils. Losses to the
dwelling & other structures are paid on a replacement cost basis, & losses to personal property
contents are paid on actual cash value basis to the insured. correct answers DP-3 (Special Form)
DP-1 Perils Insured Against correct answers Fire, lightning, internal explosion, optional with
endorsement, wind, hail, aircraft, riot or civil commotion, vehicles, volcanic eruption, explosion,
smoke, VMM
