Policy Study Guide Exam Questions
And Answers
Coverage A - (correct answer) -Dwelling
Coverage B - (correct answer) -Personal Property
Coverage C - (correct answer) -Loss of Use
Coverage A - (correct answer) -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 - (correct answer) -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 - (correct answer) -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 - (correct answer) -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
And Answers
Coverage A - (correct answer) -Dwelling
Coverage B - (correct answer) -Personal Property
Coverage C - (correct answer) -Loss of Use
Coverage A - (correct answer) -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 - (correct answer) -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 - (correct answer) -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 - (correct answer) -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
