Kentucky Property & Casualty
(Chapter 5) Exam Q’s and A’s
Dwelling Insurance Policy - -This type of policy covers residential properties
that are not regularly occupied by the policyholder.
Includes properties which are rented to others and properties which are
occupied seasonally.
This coverage is most often selected when the insured does not qualify for
the broader coverages of the homeowners policy.
- Reasons for purchasing dwelling insurance policy - -Coverage is often
selected when the insured does not qualify for broader coverages of the
homeowners policy.
The dwelling does not meet the minimum property value required by
homeowners policy of $25,000
The insured dwelling is still under construction
The residential dwelling is not owner occupied.
Dwelling policies are essential insurance coverage for landlords.
- Dwelling Policy Types - -Basic (DP 01) offers limited coverage
Broad (DP 02) offers more coverage than basic
Special (DP 03) offers the most comprehensive coverages
- Characteristics of the dwelling Insurance policy - -Property contracts that
do not contain liability coverage
And were not originally designed to automatically cover theft loss
- Dwelling policy - basic form (DP 1) - -This dwelling policy Offers limited
coverage from losses caused by a narrow range of named perils
Actual cash value loss payment for both dwelling and contents. Named perils
only
Offers coverage for dwelling, structures, and personal property (A, B, & C)
, Insures against loss from three perils only. Fire, lightning, and internal
explosions.
There is no minimum dollar coverage requirement.
Policy also covers removal. This is a limited time, all risk coverage for
property removed from the insurance purposes and stored elsewhere to save
it from further damage from a Covered peril.
Covers property removed to prevent further loss for five days.
Insured can purchase extended coverage perils. There are nine payrolls that
could be covered. Riot, explosion, vehicles (not yours) volcanic eruption, civil
commotion, smoke, hail, aircraft, windstorm.
- EXAM HINT - "Rev Vc Shaw" - -Acronym that can help you remember the
nine extended coverage perils.
- Dwelling policy - broad form (DP 2) - -The strolling policy offers broader
coverage than the basic form. Covers a broader range of named perils
Named peril's only. Replacement cost (80%) loss payment dwelling and
actual cash value on contents
Offers coverage for dwelling, other structures, and coverage on contents. (A,
B, C)
Loss settlements for dwelling and other structures are paid on a replacement
cost 80% basis while lost settlements for contents are paid on actual cash
value basis
Named perils include all of the named perils from the basic form, including
all of the extended coverage perils, and vandalism in malicious mischief.
Provides coverage for property removed to prevent further loss for 30 days.
Additional nine broad form perils include burglar damage, ice and snow,
glass breakage accidental discharge, falling objects, freezing pipes, electrical
damage, collapse, tearing apart.
- EXAM HNT - "BIG AFFECT" - -Acronym that can help you remember the
nine broad form perils.
- Hostile Fire - -a fire that leaves its intended place, such as a spark that
escapes a fireplace and sets the carpet on fire (it is not controlled)
(Chapter 5) Exam Q’s and A’s
Dwelling Insurance Policy - -This type of policy covers residential properties
that are not regularly occupied by the policyholder.
Includes properties which are rented to others and properties which are
occupied seasonally.
This coverage is most often selected when the insured does not qualify for
the broader coverages of the homeowners policy.
- Reasons for purchasing dwelling insurance policy - -Coverage is often
selected when the insured does not qualify for broader coverages of the
homeowners policy.
The dwelling does not meet the minimum property value required by
homeowners policy of $25,000
The insured dwelling is still under construction
The residential dwelling is not owner occupied.
Dwelling policies are essential insurance coverage for landlords.
- Dwelling Policy Types - -Basic (DP 01) offers limited coverage
Broad (DP 02) offers more coverage than basic
Special (DP 03) offers the most comprehensive coverages
- Characteristics of the dwelling Insurance policy - -Property contracts that
do not contain liability coverage
And were not originally designed to automatically cover theft loss
- Dwelling policy - basic form (DP 1) - -This dwelling policy Offers limited
coverage from losses caused by a narrow range of named perils
Actual cash value loss payment for both dwelling and contents. Named perils
only
Offers coverage for dwelling, structures, and personal property (A, B, & C)
, Insures against loss from three perils only. Fire, lightning, and internal
explosions.
There is no minimum dollar coverage requirement.
Policy also covers removal. This is a limited time, all risk coverage for
property removed from the insurance purposes and stored elsewhere to save
it from further damage from a Covered peril.
Covers property removed to prevent further loss for five days.
Insured can purchase extended coverage perils. There are nine payrolls that
could be covered. Riot, explosion, vehicles (not yours) volcanic eruption, civil
commotion, smoke, hail, aircraft, windstorm.
- EXAM HINT - "Rev Vc Shaw" - -Acronym that can help you remember the
nine extended coverage perils.
- Dwelling policy - broad form (DP 2) - -The strolling policy offers broader
coverage than the basic form. Covers a broader range of named perils
Named peril's only. Replacement cost (80%) loss payment dwelling and
actual cash value on contents
Offers coverage for dwelling, other structures, and coverage on contents. (A,
B, C)
Loss settlements for dwelling and other structures are paid on a replacement
cost 80% basis while lost settlements for contents are paid on actual cash
value basis
Named perils include all of the named perils from the basic form, including
all of the extended coverage perils, and vandalism in malicious mischief.
Provides coverage for property removed to prevent further loss for 30 days.
Additional nine broad form perils include burglar damage, ice and snow,
glass breakage accidental discharge, falling objects, freezing pipes, electrical
damage, collapse, tearing apart.
- EXAM HNT - "BIG AFFECT" - -Acronym that can help you remember the
nine broad form perils.
- Hostile Fire - -a fire that leaves its intended place, such as a spark that
escapes a fireplace and sets the carpet on fire (it is not controlled)
