Policy Study Guide Exam Questions
With Guaranteed Pass Solutions.
Coverage A - Answer Dwelling
Coverage B - Answer Personal Property
Coverage C - Answer Loss of Use
Coverage A - 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 - 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 - 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 - 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
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 - Answer 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 - Answer 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 - Answer True or False: In the FP-7955 policy, Coverage C consists of three coverages:
• Additional Living Expense
With Guaranteed Pass Solutions.
Coverage A - Answer Dwelling
Coverage B - Answer Personal Property
Coverage C - Answer Loss of Use
Coverage A - 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 - 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 - 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 - 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
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 - Answer 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 - Answer 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 - Answer True or False: In the FP-7955 policy, Coverage C consists of three coverages:
• Additional Living Expense
