Unit 6 P&C Dwelling Insurance

Dwelling Policy (DP)

Property policy designed for dwellings that may not qualify for homeowners coverage.

They provide property coverage only.

Why are Dwelling Policies called monoline policies?

DP-1, DP-2, and DP-3.

What are the three Dwelling forms?

DP-1

Basic Form.

DP-2

Broad Form.

DP-3

Special Form.

Landlords, vacation homes, hunting cabins, and older homes.

Who commonly uses Dwelling Policies?

No.

Are farm dwellings eligible for Dwelling coverage?

Yes, by endorsement.

Can dwellings under construction be insured under a Dwelling Policy?

Up to 4 units.

How many family units may an eligible dwelling contain?

Dwelling.

Coverage A

Other Structures.

Coverage B

10% of Coverage A.

Coverage B Limit

Personal Property.

Coverage C

Fair Rental Value.

Coverage D

Additional Living Expense.

Coverage E

10% of Coverage C.

Coverage C Off-Premises Limit

No.

Are tenant belongings covered under Coverage C?

20% of Coverage A.

Coverage D Limit

10% of Coverage A.

Coverage E Limit

No, it must be added by endorsement.

Is Coverage E automatically included in DP-1?

Yes.

Is Coverage E automatically included in DP-2 and DP-3?

Additional living expenses such as lodging, meals, laundry, and transportation.

Coverage E pays for what expenses?

Actual Cash Value (ACV).

DP-1 Loss Settlement on Structures

Replacement Cost.

DP-2 Loss Settlement on Structures

Replacement Cost.

DP-3 Loss Settlement on Structures

Replacement Cost Requirement

Insurance must equal at least 80% of replacement value.

Fire, Lightning, and Internal Explosion.

DP-1 Covers What Three Perils?

Wind, Civil Commotion, Smoke, Hail, Aircraft, Vehicles, Volcanic Eruption, Explosion, Riot.

What does WCSHAVVER stand for?

Vandalism and Malicious Mischief (V&MM)

Available for additional premium under DP-1.

DP-1 perils plus WCSHAVVER, V&MM, and BIG AFFECT.

DP-2 Covers What Perils?

Burglary, Ice/Snow, Glass, Accidental Water, Freezing, Falling Objects, Electrical Current, Collapse, Tearing Asunder.

What does BIG AFFECT stand for?

DP-3 Coverage Basis

Open peril for dwelling and other structures.

DP-3 Personal Property Coverage

Broad named perils only.

DP-3 Major Exclusions

Intentional loss, theft, wear and tear, foundations, and freezing due to neglect.

General Dwelling Policy Exclusions

Ordinance or Law, Earthquake, Flood, War, Nuclear Hazard, Intentional Loss, Government Action.

No.

Does a Dwelling Policy cover flood?

No.

Does a Dwelling Policy cover earthquake?

No.

Does a Dwelling Policy cover war?

No.

Does a Dwelling Policy cover intentional loss?

Fire Department Service Charge

$500 with no deductible.

5 days.

Property Removed Coverage (DP-1) Time Limit

30 days.

Property Removed Coverage (DP-2 and DP-3) Time Limit

$500 each, maximum 5% of Coverage A.

Trees, Shrubs, and Plants Coverage Limits

10% of Coverage A.

Ordinance or Law Coverage (DP-2/DP-3) Limit

Collapse Coverage

Automatically included in DP-2 and DP-3.

10% of Coverage C.

Worldwide Coverage for Personal Property Limit

Loss Payment

Time insurer has to pay after agreement is reached with insured is 60 days.

Pair and Set Clause

Value before loss minus value after loss.

Other Insurance Clause

Insurer pays only its proportion of the loss.

Recovered Property Condition

If property is recovered after claim payment, the other party must be notified.

Personal Liability.

Coverage L

Medical Payments to Others.

Coverage M

$100,000.

Coverage L Minimum Limit

$1,000 per person.

Coverage M Minimum Limit

No-fault coverage.

Coverage M Coverage Basis

Within 3 years of the accident.

Medical Payments must be incurred within how long?

Bodily injury and property damage for which the insured is legally liable.

Coverage L Covers What?

Necessary medical expenses for others regardless of fault.

Coverage M Covers What?

Bonds, Aid, Interest, Loss of Earnings, Expenses, Defense Costs.

What does BAILED stand for?

No.

Do BAILED coverages reduce the liability limit?

Residential Theft Coverage

Coverage not automatically included in a Dwelling Policy.

Broad Theft Coverage

Theft coverage that only applies to owner-occupied dwellings only.

Limited Theft Coverage

Theft coverage that only applies to non-owner-occupied dwellings only.

$200.

Residential Theft Limit for Money

$1,500.

Residential Theft Limit for Securities and Manuscripts

$1,500.

Residential Theft Limit for Jewelry, Watches, and Furs

$1,500.

Residential Theft Limit for Watercraft

$2,500.

Residential Theft Limit for Firearms

$2,500.

Residential Theft Limit for Silverware, Goldware, and Pewterware

Automatic Increase in Insurance Endorsement

Automatically increases dwelling coverage at renewal.

4%, 6%, or 8%.

Automatic Increase Endorsement Available Percentages

Dwelling Under Construction Endorsement

Provides coverage while a dwelling is being built.

Mobile Home Endorsement

Allows a mobile home and personal property to be covered.

Mobile Home Coverage Requirement

Mobile home must be on a permanent foundation.