Policy Study Guide Exam Questions With 100% Correct Answers

Policy Study Guide Exam Questions With 100% Correct Answers Coverage A - answerDwelling Coverage B - answerPersonal Property Coverage C - answerLoss of Use Coverage A - answeris 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 - answeris 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 - answerprovides 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 - answerprovides 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 - answerprovides 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 - answermold, 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 - answerTrue 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