Property Dwelling Policy Flashcards

Used to insure private residential property that is not occupied by its owner.
Ex: rental property, or private residential property that is occupied by its owner buy does not qualify for HP due to age, value, location, etc.

1. To be eligible, dwellings must be used principally for dwelling purposes and may not have more than  apartment units, and not more than  roomers or boarders in total.2. Mobile homes are eligible if they are permanently located, but only on the Basic Form. The coverage, however, would not include an attached carport.3. Incidental business occupancies are permitted, providing they are of the service type, such as a beauty shop, professional office, music lesson studio, etc., and do not involve retail sales or manufacturing, or have more than  persons at work at any  time.4. Dwellings located on farms are insured under farm property coverage forms and are not eligible under the Dwelling policy

(Basic Form) 1) perils that are covered by the Basic Form are fire, lightning, and internal explosion. 2) Can add ECE and VVM for additional premiums.- (VMM) is added, it excludes loss for vandalism occurring after 0 days of vacancy3) Losses to the dwelling, other structures, and contents are paid on an actual cash value basis to the insured.

Perils of wind, hail, aircraft, riot, vehicles, volcanic eruption (other than loss caused by earthquake, land shockwave or tremor), explosion, and smoke are covered by adding the ECE for an additional premium

The perils of vandalism and malicious mischief may be covered by adding the optional VMM for an additional premium

(Broad Form)
1) The perils that are covered by the Broad Form are those included under the DP- with the ECE and optional VMM endorsement attached, plus: damage by burglars; falling objects; weight of snow, ice, and sleet; accidental discharge or overflow of water or steam; sudden and accidental tearing apart, cracking, burning or bulging of a steam or hot water heating system, or an air conditioning or automatic fire protective sprinkler system, or an appliance for heating water; freezing of a plumbing, heating, air conditioning, or automatic fire protective sprinkler system, or of a household appliance; and sudden and accidental damage from artificially generated electrical current.2) The burglary damage peril includes damage to the covered property caused by the burglars, but not theft of property. The vehicle peril does not include loss to a fence, driveway, or walk caused by a vehicle owned or operated by the insured. The smoke peril does not include loss caused by smoke from agricultural smudging or industrial operations.3) Losses to the dwelling and other structures are paid on a replacement cost basis, and losses to contents are paid on an actual cash value basis to the insured

(Special Form)1) The dwelling and other structures are covered for all direct physical damage (open peril), except for perils specifically excluded.2) Theft of property that is part of the dwelling or other structures is covered as long as the dwelling or other structures are not under construction or have not been vacant for more than 0 days immediately preceding the loss. Example: Built-in appliances.3) Personal property or contents are covered for the Broad Form (DP-) perils.4) Losses to the dwelling and other structures are paid on a replacement cost basis, and losses to contents are paid on an actual cash value basis to the insured.

Coverage A – DwellingCoverage B – Other StructuresCoverage C – Personal PropertyCoverage D – Fair Rental ValueCoverage E – Additional Living Expense

1. This coverage applies to the dwelling described in the Declarations part of the policy including structures attached to the dwelling, such as an attached garage, carport, etc2. This coverage also includes materials and supplies on or next to the described location for the alteration or repair of the dwelling or other structures on the described location.3. Unless otherwise covered in the policy, building equipment and outdoor equipment used for the service of and located on the described location are considered as dwelling.4. This coverage does not apply to land, including land on which the dwelling is locatedNote: Neither Coverages A nor B cover wind, hail, ice, snow, or sleet damage to outdoor radio and television antennas and aerials, including their lead-in-wiring, masts or towers

1. This coverage applies to other structures on the described location that are detached from the dwelling, such as a detached garage, carport, outdoor storage building, etc.2. This coverage does not apply to land, including land on which the other structures are located as well as structures used, in whole or in part, for commercial, manufacturing, or farming purposes. It is permissible for the insured to rent a private garage to another for garage purposes.3. The Coverage B limit of insurance is up to 0% of the Coverage A limit and is automatically included under each of the dwelling forms. In the case of a DP-, this limit does not increase the amount of insurance available beyond the Coverage A limit, while in the case of the DP- and DP-, this limit does increase the amount of insurance available beyond the Coverage A limit.
Ex: The Coverage A limit on an insured dwelling is $100,000. In the case of a DP-1, a detached garage would be covered up to $10,000, but as a part of the $100,000 on the dwelling; not in addition to the $100,000 limit on the dwelling. In the case of a DP-2 and DP-3 the garage would be covered up to $10,000 in addition to the $100,000 on the dwelling.Note: Neither Coverages A nor B cover wind, hail, ice, snow, or sleet damage to outdoor radio and television antennas and aerials, including their lead-in-wiring, masts or towers.

1. This coverage applies to household and personal property, usual and incidental to the occupancy of the premises as a dwelling and owned by the insured or by members of the insured’s family residing with the insured while it is on the described location. At the insured’s request, Coverage C will cover personal property of a guest or servant while the property is on the described location. Personal property of an insured’s tenant or boarder is not covered.2. This coverage also automatically applies to personal property the insured removes from the described location to a newly acquired principal residence for 30 days or until policy expiration, whichever occurs sooner.3. This coverage specifically excludes: accounts, bank notes, coins and currency; birds, animals, and fish; watercraft other than rowboats or canoes; motor vehicles other than those used to service the described location or to assist the handicapped; electronic data processing tapes, wires, and records; and credit cards or fund transfer cards.4. The insured may use up to 0% of the Coverage C limit of insurance for loss caused by an insured peril to covered property, except rowboats and canoes, anywhere in the world.

1. This coverage is an indirect loss property coverage that applies following a direct loss to property described in Coverages A, B, or C by an insured peril. 2. This coverage pays the fair rental value of that part of the described location that is rented to others or held for rental to others at the time of a loss. 3. The Coverage D limit of insurance is up to 0% of the Coverage A limit and is automatically included under each of the dwelling forms. In the case of the DP-, this limit does not increase the amount of insurance available beyond the Coverage A limit, while in the case of the DP- and DP- this limit does increase the amount of insurance available beyond the Coverage A limit

1. This coverage is an indirect loss property coverage that applies following a direct loss to property described in Coverages A, B, or C by an insured peril, and is automatically included only in the DP- and the DP-.2. This coverage pays the additional living expense incurred by the insured when an owner-occupied dwelling sustains a direct loss. Additional Living Expenses are deemed those sustained by an insured household in order to maintain its normal standard of living. Coverage can include the increased auto expense of driving a greater distance to and from work as the result of a direct loss.3. The Coverage E limit of insurance is up to 0% of the Coverage A limit, and this amount of insurance