FLORIDA PERSONAL LINES LATEST UPDATED EXAMINATION
QUESTIONS WITH VERIFIED A+ ANSWERS
Secondary water resistance
a layer of water resistant material can be secured underneath the shingles
Roof wall connection
Older Roofs might be secured to the house using only the weight of the roof. The roof can be secured
using nails, clips, straps, or other methods.
Opening Protection
Impact resistant doors and windows make a structure eligible for significant discounts.
Florida Valued Policy Law
Where there is (1) a total loss by (2) a covered peril to (3) buildings (personal property not under this
law) the company must either pay in money the face amount on the policy, replace with a new structure
just like destroyed one - or deny claim for valid reason. Law applies to all buildings or structures located
in Florida.
Catastrophic Ground Cover Collapse
This coverage is REQUIRED on all property insurance policies in Florida. statutes distinguished from
sinkhole.
Sinkhole
Insurers are required to offer sinkhole coverage on all florida property insurance policies. Carrier is
allowed to require an inspection before providing coverage.
Coinsurance Equation
(Insurance Carried / Insurance Required) x Loss Amount = Loss Payment
Dwelling Policy - Coverage A
Dwelling: Covers the dwelling itself, including attacked pool enclosure
Dwelling Policy - Coverage B
Other structures: Covers detached garages, greenhouses, pool houses, detached pools, fences,
mailboxes, and any other buildings.
Dwelling Policy - Coverage C
Personal Property: Covers any 'stuff' other than buildings owned or used by insured, ON PREMISES
ONLY. This is OPTIONAL COVERAGE on DP.
Dwelling Policy - Coverage D
,Fair Rental Value: Replaces rental income that is lost after a covered loss to the dwelling, while the
dwelling is unfit for use.
Dwelling Policies 1, 2, 3 typically EXCLUDE
P - Power failure from utility occuring outside premises
O - Ordinance or law requiring demolition of partly damaged property, cost of demolition, cost to
rebuild to new requirements (10% limit is given back as ordinance or law coverage)
W - Water rising, flood, backing sewers
E - Earth movement other than catastrophic ground cover collapse (sinkhole)
R - Rebellion, revolution, insurrection, war, nuclear
DP - 1 BASIC FORM
Coverage A - Dwelling - Includes equipment, fixtures for service. DP-1 pays ACV.
Coverage B - Other Structures - Coverage explained under Other Coverages. COMES OUT OF Coverage A
Limit on the DP-1
Coverage C - Personal Property - Ordinary contents, property insured may be liable for as a bailee,
property of guest or servant.
Coverage D - Fair Rental Value - Coverage explained under other coverages. COMES OUT OF COVERAGE
A LIMIT.
Perils: Fire, Lightning, Explosion inside the house. Florida policies have catastrophic ground cover
collapse on a DP-1 by default. BASIC PERILS.
Extended Coverages for DP-1
W - Windstorm
C - Civil Commotion
S - Smoke (Sudden accidental smoke, excluding fireplaces, agricultural smudging or industrial
operations), catastrophic ground cover collapse (and sinkhole if purchased)
H - Hail
A - Aircraft, spacecraft, Missiles
V - Vehicles - excludes owners or tenants, volcanic action
E - Explosion, except steam pipe or steam boiler
R - Riot and riot attending strike
Vandalism and Malicious Mischief (VMM) optional peril - suspended after 60 days of vacancy.
Vandalism
Refers to someone randomly destroying property
Malicious Mischief
Refers to property damage by someone who has a grudge against you
, Other Coverages for DP - 1
Not additional amounts of insurance - in other words, if the policy pays for one of these things, the
money comes of of your coverage A or C limit.
R - Rental value 20% of A - paid at a rate not to exceed 1/12 of the 20% per month
I - Improvements, alterations, additions - applies only if insured does not own premises - 10% of C
O - Other structures - 10% of A - only private garages may be rented
T - Temporary location covered after removal to save from covered peril - 5 days
R - Repairs to prevent further damage
O - Off Premises - 10% of C - Worldwide - No boats covered
D - Debris removal
Other Exclusions
Wear and Tear - deterioration, mechanical breakdown, latent defect, inherent vice causing property to
destroy itself.
Smog, rust, or other corrosion, dry rot. Smoke from agriculture or industrial operations.
Discharge of pollutants, unless cause by a covered peril.
Settling, Shrinking, bulging, expansion, and resultant cracking of bulkheads, pavement, patios,
foundations, walls, floors, roofs, ceilings, foundations being damaged by fire, wind, etc are normally
covered.
Birds, rodents or insects (vermin) nesting, infestation, or waste of any animals. Damage by animals
owned or kept by an insured.
Cancellation, non renewal, and renewal premium - Dwelling Policy
After the first 90 days of coverage, 120 days is required for cancellation or non renewal of policy.
within the first 90 days, only 20 days notice is required, accompanies by the reason for cancellation.
only 10 days is required if the cancellation is for non payment of premium.
The company must give 45 days notice of renewal premium.
*Applies to all residential/commercial residential properties in Florida.
Deductibles for perils
$500 deductible for perils other than Hurricane - $500 minimum 2% to 10% of policy limit.
One hurricane deductible per policy year. $500 fire department service charge.
QUESTIONS WITH VERIFIED A+ ANSWERS
Secondary water resistance
a layer of water resistant material can be secured underneath the shingles
Roof wall connection
Older Roofs might be secured to the house using only the weight of the roof. The roof can be secured
using nails, clips, straps, or other methods.
Opening Protection
Impact resistant doors and windows make a structure eligible for significant discounts.
Florida Valued Policy Law
Where there is (1) a total loss by (2) a covered peril to (3) buildings (personal property not under this
law) the company must either pay in money the face amount on the policy, replace with a new structure
just like destroyed one - or deny claim for valid reason. Law applies to all buildings or structures located
in Florida.
Catastrophic Ground Cover Collapse
This coverage is REQUIRED on all property insurance policies in Florida. statutes distinguished from
sinkhole.
Sinkhole
Insurers are required to offer sinkhole coverage on all florida property insurance policies. Carrier is
allowed to require an inspection before providing coverage.
Coinsurance Equation
(Insurance Carried / Insurance Required) x Loss Amount = Loss Payment
Dwelling Policy - Coverage A
Dwelling: Covers the dwelling itself, including attacked pool enclosure
Dwelling Policy - Coverage B
Other structures: Covers detached garages, greenhouses, pool houses, detached pools, fences,
mailboxes, and any other buildings.
Dwelling Policy - Coverage C
Personal Property: Covers any 'stuff' other than buildings owned or used by insured, ON PREMISES
ONLY. This is OPTIONAL COVERAGE on DP.
Dwelling Policy - Coverage D
,Fair Rental Value: Replaces rental income that is lost after a covered loss to the dwelling, while the
dwelling is unfit for use.
Dwelling Policies 1, 2, 3 typically EXCLUDE
P - Power failure from utility occuring outside premises
O - Ordinance or law requiring demolition of partly damaged property, cost of demolition, cost to
rebuild to new requirements (10% limit is given back as ordinance or law coverage)
W - Water rising, flood, backing sewers
E - Earth movement other than catastrophic ground cover collapse (sinkhole)
R - Rebellion, revolution, insurrection, war, nuclear
DP - 1 BASIC FORM
Coverage A - Dwelling - Includes equipment, fixtures for service. DP-1 pays ACV.
Coverage B - Other Structures - Coverage explained under Other Coverages. COMES OUT OF Coverage A
Limit on the DP-1
Coverage C - Personal Property - Ordinary contents, property insured may be liable for as a bailee,
property of guest or servant.
Coverage D - Fair Rental Value - Coverage explained under other coverages. COMES OUT OF COVERAGE
A LIMIT.
Perils: Fire, Lightning, Explosion inside the house. Florida policies have catastrophic ground cover
collapse on a DP-1 by default. BASIC PERILS.
Extended Coverages for DP-1
W - Windstorm
C - Civil Commotion
S - Smoke (Sudden accidental smoke, excluding fireplaces, agricultural smudging or industrial
operations), catastrophic ground cover collapse (and sinkhole if purchased)
H - Hail
A - Aircraft, spacecraft, Missiles
V - Vehicles - excludes owners or tenants, volcanic action
E - Explosion, except steam pipe or steam boiler
R - Riot and riot attending strike
Vandalism and Malicious Mischief (VMM) optional peril - suspended after 60 days of vacancy.
Vandalism
Refers to someone randomly destroying property
Malicious Mischief
Refers to property damage by someone who has a grudge against you
, Other Coverages for DP - 1
Not additional amounts of insurance - in other words, if the policy pays for one of these things, the
money comes of of your coverage A or C limit.
R - Rental value 20% of A - paid at a rate not to exceed 1/12 of the 20% per month
I - Improvements, alterations, additions - applies only if insured does not own premises - 10% of C
O - Other structures - 10% of A - only private garages may be rented
T - Temporary location covered after removal to save from covered peril - 5 days
R - Repairs to prevent further damage
O - Off Premises - 10% of C - Worldwide - No boats covered
D - Debris removal
Other Exclusions
Wear and Tear - deterioration, mechanical breakdown, latent defect, inherent vice causing property to
destroy itself.
Smog, rust, or other corrosion, dry rot. Smoke from agriculture or industrial operations.
Discharge of pollutants, unless cause by a covered peril.
Settling, Shrinking, bulging, expansion, and resultant cracking of bulkheads, pavement, patios,
foundations, walls, floors, roofs, ceilings, foundations being damaged by fire, wind, etc are normally
covered.
Birds, rodents or insects (vermin) nesting, infestation, or waste of any animals. Damage by animals
owned or kept by an insured.
Cancellation, non renewal, and renewal premium - Dwelling Policy
After the first 90 days of coverage, 120 days is required for cancellation or non renewal of policy.
within the first 90 days, only 20 days notice is required, accompanies by the reason for cancellation.
only 10 days is required if the cancellation is for non payment of premium.
The company must give 45 days notice of renewal premium.
*Applies to all residential/commercial residential properties in Florida.
Deductibles for perils
$500 deductible for perils other than Hurricane - $500 minimum 2% to 10% of policy limit.
One hurricane deductible per policy year. $500 fire department service charge.
