Unit 6 Cram Sheet

3 basic characteristics of dwelling policies

1. Unique from homeowner’s policies

2. Dwelling is NOT required to be owner occupied

3. Policy covers risks like rental property, older homes, and hunting cabins

5 categories of dwellings eligible for dwelling policies

1 - 1 to 4 unit dwellings with boarders/renters

2 - Vacation dwellings

3 - rental dwellings

4 - dwellings under construction (endorsement)

5 - Mobile homes (endorsement)

Are farm dwellings of any kind eligible for dwelling policy

NO

Dwelling Property Coverage A

Dwelling - covers main dwelling and attached structures

Dwelling Coverage B

Other Structures - covers structures detached from the main structure up to 10% of Coverage A

Dwelling Coverage C

Personal Property - if property is off premises it is only covered up to 10% ;

Does NOT cover animals, vehicles, aircraft, motorized boats, money/securities/bills

Dwelling Coverage D

Fair rental value - covers lost rental income due to loss

*If damage is due to damage on neighboring property, the loss payments are limited to 2 weeks

Dwelling Coverage E

Additional Living expenses - automatically included with DP-2 and DP - 3. Added by endorsement to DP - 1

*Covers costs like motels, dining, and transportation that arise due to losses

*You’re only eligible for payments during repair or relocation time periods

7 additional coverages automatically included with DP-1

1- debris removal

2- property removal (5 days all perils)

3- reasonable repairs

4- renters improvements

5- fire department service charge

6- worldwide personal property

7- rental value