Dwelling Policies and Property Insurance Endorsements

Vocabulary practice flashcards defining key insurance terms, dwelling policy forms (DP-1, DP-2, DP-3), and standard endorsements.

All-Risk Policy

Insurance protecting the insured from loss arising from any peril other than those specifically limited or excluded by name, contrasting with Named Peril Insurance and sometimes referred to as open peril.

Additional Living Expenses

Coverage designed to reimburse the insured for increased living expenses necessitated by loss to the dwelling, representing an indirect loss that must result from direct loss by a covered peril.

Appurtenant Structure

In a Homeowner or Fire Dwelling policy, a permanent yard fixture separate and detached from the dwelling (such as a detached garage or tool shed), often referred to as Other Structures.

AUTOMATIC INCREASE IN INSURANCE (DP 04 11)

A Dwelling policy endorsement that provides an annual increase in the Coverage A (Property) amount of $4\%$, $6\%$, or $8\%$.

Concealment or Fraud

Conduct that includes making false statements, intentionally concealing material facts, and engaging in fraudulent conduct.

Dwelling Fire Contracts

Monoline personal lines insurance policies that indemnify loss to a house, contents within the home, and appurtenant other structures, consisting of the DP-1 Basic form, DP-2 Broad form, and DP-3 Special form.

Dwelling Insurance

Personal insurance designed for insuring buildings occupied for dwelling purposes having not more than $4$ apartments or family units.

Dwelling Policy 1 (Basic Form)

Allied lines policies that provide coverage for individuals' and families' dwellings and personal property against fire and other perils.

Dwelling Policy 2 (Broad Form)

Named perils coverage on both the dwelling and contents that includes all DP-1 Basic Form perils, all Extended Coverage perils, plus Vandalism and Malicious Mischief.

Dwelling Policy 3 (Special Form)

The most comprehensive coverage available under the Dwelling Program, providing Open Perils coverage on the dwelling and structures and named perils coverage on contents.

DWELLING UNDER CONSTRUCTION ENDORSEMENT (DP 11 43)

An endorsement added when a dwelling is under construction with the occupant as the named insured, where coverage varies as a percentage of the limit as construction progresses, the insured must notify the insurer upon completion, and occupancy is allowed for up to $30$ days upon completion.

Debris Removal

Coverage that includes the removal of volcanic ash plus any debris resulting from a covered peril.

Earth Movement

Direct loss due to earthquake, including mudslides, landslides, and mine subsidence, for which an earthquake coverage endorsement is available.

Intentional Loss

Loss caused by the insured or at the direction of the insured and any loss resulting from intent to cause the loss; paying the insured for such a loss is against public policy.

Liberalization Clause

A policy provision stating that if an insurer broadens coverage to an existing policy edition, all insureds holding that original edition within a state within $60$ days of the broadening receive the broadened coverage at no extra cost.

Mortgage Clause

A provision ensuring the mortgagee is paid under Coverage A and Coverage B as their interest appears, granting the mortgagee $60$ days to file proof of loss upon notice, providing $10$ days' notice prior to cancellation or nonrenewal, and limiting insurable interest to the remaining principal mortgage balance.

Nuclear Hazards

Loss due to radiation or radioactive contamination arising from any cause.

Ordinance & Law

An additional coverage allowing the insured to use up to $10\%$ of the dwelling amount to cover costs required to bring the building up to code following a covered loss.