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Coverage A Dwelling Coverage B Personal Property Coverage C Loss of Use Coverage A is the dwelling and dwelling extensions. The dwelling is the structure used principally as a the private residence and the dwelling extensions are other structures on the residence premises separated from the dwelling by clear space. Structures connected to the dwelling by only a fence, utility line, or similar connection are still considered to be other structures. Examples of dwelling extensions would be detached garages, fences and in-ground swimming pools. Sheds can be either Coverage A or Coverage B depending on if they are permanently to or otherwise forming part of the realty. Dwelling extensions are insured for 10% of the coverage A limit. So, if your home is insured for $100,000 then structures such as the detached garage and in-ground swimming pool would be covered for $10,000. On page 3 of the policy (1.b.) • Materials and supplies located on or adjacent to the residence premises for use in the construction, alteration or repair of the dwelling or other structures on the residence premises. Coverage B is personal property owned or used by an insured while it is anywhere in the world. This coverage would include structures, such as sheds, not permanently attached to the realty. As a general rule items that you would take with you if you moved would be coverage B. One exception would be construction supplies. Coverage C: Additional Living Expense provides coverage for up to 24 months when a loss insured causes the residence to become uninhabitable. Example: Apartment rent when after a hurricane causes extensive wind damage to an insured's home. Coverage C: Fair Rental Value provides coverage for up to 12 months when you rent a portion of your home to a tenant and a loss insured causes that portion of the home to be uninhabitable. Example: You rent your garage apartment to a tenant and it sustains heavy tree damage that will cause the tenant to relocate for 2 months during the repair. Coverage C: Prohibited Use provides additional living expense and fair rental value for a period of up to two weeks when a civil authority prohibits your use of the residence premises because of direct damage to a neighboring premise by a loss insured. Example: The civil authorities in your home town will not allow you to return to your home for 3 days because of tornado damage in the area. Open Peril mold, fungus, or wet or dry rot; settling, cracking, shrinking, bulging or expansion of pavements, patios, foundation, walls, floors, roofs or ceilings; earth movement-landslide, earthquake sinkhole; water damage-including flood a surface water False. Coverage C - Loss of Use has 3 coverages (page 4): • Additional Living Expense • Fair Rental Value • Prohibited Use True or False: In the FP-7955 policy, Coverage C consists of three coverages: • Additional Living Expense • Fair Rental Value • Property removed Free standing gas grill and trampoline (definition of personal property page 3) Which item(s) listed below would be considered Coverage B? • Ceiling fan installed in the living room • Water softener system • Automatic garage door opener • Free standing gas grill • Trampoline • Built-in microwave Neither are covered. Personal property is covered for 16 named perils (pages 7-9). Peril #10 covers falling objects but the description of the peril says this peril does not include property contained in a building unless the roof or an exterior wall of the building is first damaged by a falling object. Damage to the falling object itself is not included. Your middle schooler built a model plane and hung it from the ceiling. During the night it fell and broke and also damaged an alarm clock. Which of the following is correct? • Both are covered • Neither are covered • Only model airplane is covered • Only the alarm clock is covered $0. The water that seeped under the door is surface water which is listed under losses not insured (page 10, sub-paragraph c, #1) 5) None of the above. Earthquake and landslide are listed under losses not insured (page 10, paragraph 2, sub-paragraph b). Flood is also listed under losses not insured (page 10, sub-paragraph c #1) During a rainstorm water pooled on the back patio and seeped under the back door. The area rug ($50) in front of the door was damaged and so was the laminate flooring ($1,300). One piece of baseboard ($35) was damaged and it will cost $125 to paint the continuous baseboards. The insured has a $250 deductible. As the adjuster what do you owe? None of the above. Earthquake and landslide are listed under losses not insured (page 10, paragraph 2, sub-paragraph b). Flood is also listed under losses not insured (page 10, sub-paragraph c #1) Jack's home is Napa, CA is covered with an FP-7955 policy. Which of the following types of losses will be covered? • Drywall cracks from a minimal earthquake • Damage to his chain link fence from a small landslide at the back of the property • Water damage to wood flooring from the Napa river after a heavy rain. (the home is not in a flood plain) $1,700. Prohibited Use is covered on page 4 LOSS OF USE #3. Coverage is provided up to 2 weeks. Since Kelly did not stay longer than 2 weeks the entire amount can be paid. Although there was no damage to her house Prohibited Use only requires there be damage to a "neighboring premises." The sheriff's depart in Melbourne, FL required all residents living east of Harbor City Blvd to evacuate due to an approaching hurricane. Kelly is insured with a FP-7955 with a $500 deductible and lives in the evacuation area. She drove inland to Kissimmee and stayed in a hotel for 2 weeks and incurred $1,100/wk. When she returned there was wind damage in her neighborhood but no damage to her house. As an adjuster what would you owe? False - (Page 3 Section 1 Coverages, paragraph 1, sub-paragraph b). Materials and supplies located on or adjacent to the residence premises for use in the construction, alteration or repair of the dwelling or other structures on the residence premises. The plywood would be covered if its intended use was to make repairs to the home it was stored at. True or False. Ralph is a carpenter and has 20 sheets of plywood that were left over after his last job in his garage. He said he had no specific plans for the plywood but would have used them somewhere had they not been damaged. This plywood is covered under Coverage A. It is coverage B until it is installed. Once installed it would be coverage A A new (in the box) built-in cooktop is coverage A or coverage B? Replacement cost Joan had wind damage to the roof of her detached garage. She paid her handyman $300 to make temporary repairs to prevent leaking. Her adjuster inspected the loss and estimated to replace the entire roof for $3,500. Her deductible is $500. All repairs have been completed. 9) Claim payments will based upon which of the following amounts: a. Salvage value b. Actual cash value c. Replacement cost d. Market Value e. Original purchase price