Dwelling Policies Exam Complete
Q1uestions And Answers | Verified
Key difference between homeowners and dwelling policies CORRECT ANSWERS
homeowners policies provide property and liability coverage
dwelling policies provide only property coverage
6 requirements to qualify for a dwelling policy CORRECT ANSWERS 1. used solely for
residential purposes (exception of business occupancy: beauty shops, music lessons,
or professional offices with a maximum of 2 workers)
2. building contains 4 or fewer apartments
3. townhouse or rowhouse structures
4. dwelling building under constructions
5. dwelling building occupied by owner that has values lower than the insurer's
minimums required for homeowners
6. permanently installed mobile home
5 coverages in dwelling policy CORRECT ANSWERS A. Dwelling
B. Other structures
C. Personal property
D. Fair rental value
E. Additional living expenses
Dwelling policy COVERAGE A summary CORRECT ANSWERS * residence premises
& other structures permanently attached to dwelling
* building materials located on or next to residence (used for repairs or reno)
* building & outdoor equipment used to service premises
Dwelling policy COVERAGE B summary CORRECT ANSWERS Other Structures:
* building separated from the dwelling by a clear space OR connected by fence or utility
line
* standard is 10% of Coverage A amount
* excludes land other structures are located on, rented structures, other structures used
for business or to store business property
Dwelling policy COVERAGE C summary CORRECT ANSWERS Personal Property
(contents)
* insured selects the amount for this coverage
* up to 10% may cover insured's property anywhere in the world
* excludes certain personal properties
Dwelling policy COVERAGE D summary CORRECT ANSWERS Fair Rental Value
*reimburses insured for fair rental value if the property becomes uninhabitable from
damage by a covered peril
, * pays 1/12 of 10% limit of Coverage A per month
Dwelling policy COVERAGE E summary CORRECT ANSWERS Additional Living
Expense
* only available to policyowners who occupy the dwelling
* covers additional living expenses incurred by insured after a covered loss for time
period needed to repair or replaced damaged property
* available on DP-2 and DP-3 forms only
DP-1 form CORRECT ANSWERS * Basic form / basic perils only
*insures against direct physical loss caused by fire, lightning and internal explosion
* extended coverages may be added for windstorm or hail, explosion, riot, aircraft,
vehicles not owned by the insured, smoke, volcanic eruption and vandalism and
malicious mischief
*building ordinance or law endorsement may be attached to provide coverage for
demolition costs and increased construction costs required or regulated by law or
ordinance
DP-2 form CORRECT ANSWERS * Broad form / broad perils for buildings and personal
property
* includes all from extended coverages in DP-1
* fire or lightning, windstorm or hail, explosion, riot, aircraft, vehicles, smoke, vandalism
or malicious mischief, damage by burglars, falling objects, weight of ice snow sleet,
accidental discharge or overflow of water or steam, sudden and accidental tearing
cracking burning or bulging, freezing, sudden and accidental damage from artificially
generated electrical current, volcanic eruption
DP-3 form CORRECT ANSWERS * Special form
* open peril coverage for buildings (insured against all perils unless specifically
excluded)
* broad peril coverage for personal property
DP-1 form EXCLUSIONS CORRECT ANSWERS ordinance or law, earth movement,
water damage, power failure, neglect, war, nuclear hazard, intentional loss,
governmental action, outside lawns trees shrubs or plants
DP-1 form CONDITIONS CORRECT ANSWERS *loss settlement: covered losses are
settled at the lesser of ACV, cost to repair, cost to replace
*other insurance: if other fire insurance exists, settles on a pro rata basis
DP-2 form OTHER AVAILABLE COVERAGES CORRECT ANSWERS *other structures
*debris removal
* world-wide coverage
*rental value & additional living expenses
*reasonable repairs
*property removed
Q1uestions And Answers | Verified
Key difference between homeowners and dwelling policies CORRECT ANSWERS
homeowners policies provide property and liability coverage
dwelling policies provide only property coverage
6 requirements to qualify for a dwelling policy CORRECT ANSWERS 1. used solely for
residential purposes (exception of business occupancy: beauty shops, music lessons,
or professional offices with a maximum of 2 workers)
2. building contains 4 or fewer apartments
3. townhouse or rowhouse structures
4. dwelling building under constructions
5. dwelling building occupied by owner that has values lower than the insurer's
minimums required for homeowners
6. permanently installed mobile home
5 coverages in dwelling policy CORRECT ANSWERS A. Dwelling
B. Other structures
C. Personal property
D. Fair rental value
E. Additional living expenses
Dwelling policy COVERAGE A summary CORRECT ANSWERS * residence premises
& other structures permanently attached to dwelling
* building materials located on or next to residence (used for repairs or reno)
* building & outdoor equipment used to service premises
Dwelling policy COVERAGE B summary CORRECT ANSWERS Other Structures:
* building separated from the dwelling by a clear space OR connected by fence or utility
line
* standard is 10% of Coverage A amount
* excludes land other structures are located on, rented structures, other structures used
for business or to store business property
Dwelling policy COVERAGE C summary CORRECT ANSWERS Personal Property
(contents)
* insured selects the amount for this coverage
* up to 10% may cover insured's property anywhere in the world
* excludes certain personal properties
Dwelling policy COVERAGE D summary CORRECT ANSWERS Fair Rental Value
*reimburses insured for fair rental value if the property becomes uninhabitable from
damage by a covered peril
, * pays 1/12 of 10% limit of Coverage A per month
Dwelling policy COVERAGE E summary CORRECT ANSWERS Additional Living
Expense
* only available to policyowners who occupy the dwelling
* covers additional living expenses incurred by insured after a covered loss for time
period needed to repair or replaced damaged property
* available on DP-2 and DP-3 forms only
DP-1 form CORRECT ANSWERS * Basic form / basic perils only
*insures against direct physical loss caused by fire, lightning and internal explosion
* extended coverages may be added for windstorm or hail, explosion, riot, aircraft,
vehicles not owned by the insured, smoke, volcanic eruption and vandalism and
malicious mischief
*building ordinance or law endorsement may be attached to provide coverage for
demolition costs and increased construction costs required or regulated by law or
ordinance
DP-2 form CORRECT ANSWERS * Broad form / broad perils for buildings and personal
property
* includes all from extended coverages in DP-1
* fire or lightning, windstorm or hail, explosion, riot, aircraft, vehicles, smoke, vandalism
or malicious mischief, damage by burglars, falling objects, weight of ice snow sleet,
accidental discharge or overflow of water or steam, sudden and accidental tearing
cracking burning or bulging, freezing, sudden and accidental damage from artificially
generated electrical current, volcanic eruption
DP-3 form CORRECT ANSWERS * Special form
* open peril coverage for buildings (insured against all perils unless specifically
excluded)
* broad peril coverage for personal property
DP-1 form EXCLUSIONS CORRECT ANSWERS ordinance or law, earth movement,
water damage, power failure, neglect, war, nuclear hazard, intentional loss,
governmental action, outside lawns trees shrubs or plants
DP-1 form CONDITIONS CORRECT ANSWERS *loss settlement: covered losses are
settled at the lesser of ACV, cost to repair, cost to replace
*other insurance: if other fire insurance exists, settles on a pro rata basis
DP-2 form OTHER AVAILABLE COVERAGES CORRECT ANSWERS *other structures
*debris removal
* world-wide coverage
*rental value & additional living expenses
*reasonable repairs
*property removed
