Unit 6 - Dwellings Policies

dwelling policies

do not require the building to be owner occupied and covers risks for rental property, older homes, and hunting cabins in rural areas.

monoline policies

only insure property

dwelling policy eligibility

1-4 unit, vacation, rental, under construction (endorsement), mobile homes (endorsement), NOT farm

coverage a - dwelling

covers dwelling, structures attached to the dwelling, and materials and supplies for use in the construction or repair of.

coverage b - other (detached) structures

insures buildings on the premises that are separated from the dwelling by a clear space or connected only by a fence, utility line, or similar connection. NOT used for commercial, manufacturing or farming purposes

coverage c - personal property

covers the insured's personal property that is at the described location and is usual to the dwelling occupancy. Personal property belonging to the insured's guests may be covered upon request. If rented, the tenant's property is not covered. Does not include: animals, aircraft, motor vehicles, boats, money. OFF PREMISES covered up to 10%

coverage d - fair rental value

covers the insured in the event a covered loss makes the rental portion unfit for normal use. 20% insurance is available. 2 weeks if prohibited by civil authority

coverage e - additional living expense

included in DP-2 and DP-3 and pays for additional living expenses the insured incurs after a covered loss. 10% of coverage A, 2 weeks if prohibited by civil authority

other coverages for DP-1

other structures (10%) debris/property removal (5 days), repairs, improvements, fire department charge, worldwide coverage (10%), rental value (20%)

other coverages for DP-2 and DP-3

trees shrubs, plants (5%) no more than 500 each, collapse (abruptly not foreseen), glass breakage, ordinance/law (10%) due to codes, property removed (30 days)

replacement cost coverage

DP-2 and DP-3 pay losses with no deduction for depreciation. Need coverage equal to 80% or more. Only reaches the policy limit.

DP-1 Perils

Fire (unfriendly), lightning, internal explosion (furnace, stove hot water heater)

extended coverage perils

WCSHAVVER and V&MM

broad form coverage (DP-2)

basic, WCSHAVVER, W&MM, and BIG AFFECT

special form coverage (DP-3)

provides open peril coverage on the dwelling and other structures. Personal property is covered on a named broad peril basis

general dwelling policy exclusions

ordinance or law, earthquake, flood, war, nuclear, intentional losses, government seizure

loss settlement condition

covered property losses are valued at actual cash value but are not to exceed the amount necessary to repair or replace. DP-2 and DP-3 property pays ACV, losses to DWELLING and other structures are paid on a replacement cost basis as long as 80% is held.

our option condition

gives the insurer the right to repair or replace damaged property with material or property of like kind and quality within 30 days of receiving the insured's statement of loss

deductible clause

only the amount of loss over the deductible will be paid, up to the limit of liability

loss payment condition

loss will be paid within 60 days after reaching agreement

recovered property condition

if insurer or insured recovers property on which the insurer has made loss payment, the other party must be notified. The insured may have the property returned, in which case the loss payment will be adjusted.

dwelling loss valuations

loss settlement, our option, deductible, pair or set, loss payment, other insurance, recovered property

coverage l - personal liability

provides coverage for damages that the insured becomes legally obligated to pay. Policy minimum limit is $100,000

coverage m - medical payment to others

insurer will pay all necessary medical expenses included within three years of an accident that causes bodily injury. Needs to be on location with permission or off due to activities or caused by an animal in care. limit per person of $1000

additional coverage for dwellings within liability and medical

BAILED - bonds, aid, loss of earning, expenses, defense costs

broad theft coverage

only available to owner-occupied dwellings and can apply to an off-premise theft.

limited theft coverage

for dwellings that are not owner occupied

automatic increase in insurance endorsement

provides an annual increase in coverage A and B of 4%, 6%, or 8%

dwelling under construction endorsement

attached to provide coverage when the intended occupant is the named insured. Increases as construction of the home progresses

mobile home endorsement

allows home and personal property to be insured