Chapter 3 Policy form and general exclusions

4

How many core property coverages do dwelling policies have for the insured to select from

5

When using broad and special forms how many core property coverages do dwelling policies have for the insured to select from

Dwelling, other structures, personal property, and fair rental value

What type of coverage is included in all 3 policy forms for dwelling policies

Basic

Which form is additional living expenses not included in for dwelling policies

Direct coverage

What has to be added to the dwelling policy in order to added indirect coverage

Fair rental value and additional living expense

Indirect coverages in dwelling policies

Dwelling, other structures, and personal properties

Direct coverage in dwelling polices

Showing a limit of liability and premium on the dec page

How is coverage indicated

Fair rental value and additional living expenses

A standard deductible of $250 applies to all property coverages except for

Coverage A - Dwelling

What is included for coverage as a dwelling

Coverage A

For which coverage must the dwelling be used principally for dwelling or residential purposes

Property covered and property not covered

Two parts of coverage A

Property covered in coverage A

Dwelling on the described premises listed in the declarations page and all attached structures, any materials or supplies located on or next to the described premises used to construct alter or repair the dwelling or other structures on the premises, and building equipment and outdoor equipment located on premises

Property not covered in coverage A

Land, including land on which the dwelling described in the declaration is located

Coverage B - other structures

Covers other separate structures at the same location, such as detached garages and other outbuildings (shed, fence)

Appurtenant structures

Another name for other structures

Property covered in coverage B

Other structures on the described location that are separated from the dwelling by a clear space or connected only by a fence or utility line, other structures rented to anyone other than a tenant of the dwelling but only when used as a private garage, and structures used in commercial farming or manufacturing when storing property owned solely by the insured or a tenant of the dwelling.

Property not covered in coverage B

Land including land where the other structures are located, structures rented or held for rental to anyone other than a tenant of the dwelling when not used as a private garage, other structures that are used in business (commercial, manufacturing, and farming), whether in whole or in part unless used as noted above, gravemarkers and mausoleums

Coverage C - Personal property

Can be purchased to cover personal property usual to a residence

The coverage does not apply

If there is no limit shown for coverage in personal property and no premium charged what does that mean

Property covered in Coverage C

Personal property, model or hobby aircraft, motor vehicles and other conveyances that service the premises or designed for handicap, portable electronic equipment, rowboats and canoes, blank storage media and prepackaged computer software, and property moved to a newly acquired residence for 30 days

Property not covered in coverage C

Coins currency gold and silver medals securities bills accounts bank notes deeds passports, animals birds and fish, aircraft used or designed for flight, hovercraft, watercraft, motor vehicles, cost to restore data stored in various mediums, credit cards debit cards or any device used deposit funds, water or stream, grave markers and mausoleums

Coverage D - Fair Rental Value

Applies if property under coverage A, B, or C becomes damaged or destroyed by a peril covered in the policy

Coverage D

Which coverage will pay the fair rental value of the described premises but will deduct expenses that are discontinued while the premises are unfit for use and will continue the policy till claim is covered

Coverage E - Additional living expenses

Only available if broad or special form dwelling coverage is written

Additional living expenses coverage

What pays for the increase in normal living expenses the insured incurs while the described premises are unfit for normal use

True

Coverage for additional living expenses is only triggered when a direct damage claim is covered by the policy

Other structures

The insured may elect to apply 10% of the dwelling insurance amount to cover other structures on the insured premises. Not an additional amount of insurance and will reduce the amount available under coverage A in case of a concurrent loss.

Debris removal

Coverage for reasonable costs to remove debris after a covered loss

Improvements, alterations, and additions

If the insured is a tenant, up to 10% of the personal property limit (Coverage C) may be applied to loss or damage to improvements, alterations, or additions acquired by the insured tenant

Worldwide coverage

Insured may elect to apply up to 10% of the personal property limit (coverage C) to pay for losses to personal property away from the premises while anywhere in the world

Rental value and additional living expense

Up to 20% of the coverage A limit liability may be used for loss of both fair rental value and additional living expenses

Reasonable repairs

Costs incurred by the insured for repairs necessary to protect property from further damage at the time of a covered loss are also covered

Property removed

The policy will pay for loss or damage to property removed from the insured premises when threatened by a peril insured against

Fire department service charge

Costs paid for incurred by the insured because of an agreement to pay the fire department if they respond to a fire at the described premises

Lawns, tree, shrubs, and plants, breakage of glass, collapse, and ordinance or low

Coverages that are only included in broad and special forms

Ordinance of law, earth movement, water damage, power failure, neglect, war, nuclear hazard, intentional loss, governmental action, and special form ex

Exclusions in dwelling policies

Ordinance of Law

Coverage does not apply to expenses incurred as the result of any ordinance or law that regulates the construction, use, or repair of any property, or that requires the tearing down of any property

Earth movement

Earthquakes and land shock waves associated with volcanic action are not covered. Landslides, shifting, mudslides, and sinkholes are also not covered

Water damage

damage caused by flood, water or waterborne material, surface water, waves, whether wind driven or not, including storm surge, is not covered

Power Failure

Failure of power or other utility services that occurs off the location listed in the policy

Neglect

If at the time of loss, further damage results because the insured neglected to try to save or preserve the property, there is no coverage for additional loss or damage

War

Damage caused by war, insurrection, rebellion, or revolution is not covered

Nuclear Hazard

Policy will not respond to losses associated with nuclear reaction or radiation, or radioactive contamination

Intentional Loss

Coverage not provided for a person who commits or directs another to commit an intentional act with the intent to cause loss

Governmental action

Destruction, confiscation, or seizure of property by order of governmental authority

Special form exclusion

Contains only the following additional exclusions that apply only to coverages A and B