Dwelling Property Insurance Overview

A collection of vocabulary flashcards covering key terms and concepts related to dwelling property insurance.

Dwelling Property Forms

Insurance policy forms that provide coverage for dwellings, including DP 1, DP 2, and DP 3, each with varying levels of protection.

Coverage A

Dwelling coverage, which includes the building and permanently installed equipment; does not cover land.

Coverage B

Coverage for Other Structures (detached) on the property, excluding commercial use.

Coverage C

Coverage for Personal Property belonging to the insured, family members, or guests, excluding roomers and boarders.

Coverage D

Fair Rental Value, which compensates for lost rental income due to covered losses until repairs are made.

Coverage E

Additional Living Expense, which supports maintaining living standards while a dwelling is repaired, available by endorsement in DP 1.

Replacement Cost

The amount it would take to replace damaged property with a new equivalent, provided it is insured for at least 80% of its value.

Actual Cash Value (ACV)

Settlement amount based on the property’s replacement cost minus depreciation.

Named Perils

A form of insurance coverage that protects against specific risks outlined in the policy, such as Fire, Lightning, and Internal Explosion.

Catastrophic Ground Cover Collapse (CGCC)

An endorsement that covers property damage due to geological activity leading to ground collapse.

Extended Coverage

Additional perils that can be purchased to enhance coverage, including windstorm and vandalism.

Tenant's Improvements

Alterations made by a tenant to a rented property that may be covered under the policy.

Deductible

The amount the insured must pay out of pocket before the insurance coverage kicks in.

Liability Coverage

Coverage that protects the insured against claims for bodily injury or property damage to others.

Fire Coverage

Coverage that protects against losses due to fire, lightning, and internal explosion.

Exclusions

Specific conditions or circumstances that are not covered by the insurance policy.

Subrogation

The process by which an insurance company seeks to recover costs from a third party responsible for a loss.