Understanding Dwelling Policies: Coverage, Forms, and Perils

1. What are the 3 Dwelling Forms?

DP-1: Basic FormDP-2: Broad FormDP-3: Special/Broad Form

DP-5: Deluxe Form

DP-6: Ultimate Form

DP-4: Extra Form

The correct answers for Dwelling Forms are DP-1: Basic Form, DP-2: Broad Form, and DP-3: Special/Broad Form. The incorrect answers are not part of the standard 3 Dwelling Forms.

Explanation

The correct answers for Dwelling Forms are DP-1: Basic Form, DP-2: Broad Form, and DP-3: Special/Broad Form. The incorrect answers are not part of the standard 3 Dwelling Forms.

2. What are the Basic Perils on the DP-1 policy form?

Wind, Hail, Flood

Fire, Lightning, Internal Explosion

Vandalism, Theft, Riot

Earthquake, Landslide, Tornado

The DP-1 policy form covers basic perils such as Fire, Lightning, and Internal Explosion. It does not typically include perils like Wind, Hail, Flood, Earthquake, Landslide, Tornado, Vandalism, Theft, or Riot.

Explanation

The DP-1 policy form covers basic perils such as Fire, Lightning, and Internal Explosion. It does not typically include perils like Wind, Hail, Flood, Earthquake, Landslide, Tornado, Vandalism, Theft, or Riot.

3. How many living units and roomer/boarders can be insured on a Dwelling Policy?

Living units: 2 Roomers/Boarders: 6

Living units: 4Roomers/Boarders: 5

Living units: 3 Roomers/Boarders: 4

Living units: 6 Roomers/Boarders: 3

A Dwelling Policy typically allows for 4 living units and up to 5 roomers/boarders to be insured.

Explanation

A Dwelling Policy typically allows for 4 living units and up to 5 roomers/boarders to be insured.

4. What does the optional endorsement Coverage L & M provide protection for?

Coverage L: Personal Injury Protection Coverage M: Uninsured Motorist

Coverage L: LiabilityCoverage M: Medical Payments

Coverage L: Comprehensive Coverage M: Bodily Injury Liability

Coverage L: Property Damage Coverage M: Collision

The correct answer explains the specific protections provided by Coverage L and M in insurance policies. The incorrect answers provided are common insurance terms but do not match with the actual coverage provided by L and M.

Explanation

The correct answer explains the specific protections provided by Coverage L and M in insurance policies. The incorrect answers provided are common insurance terms but do not match with the actual coverage provided by L and M.

5. What additional peril can be purchased if you are already carrying the Extended Coverage Perils?

Vandalism & Malicious Mischief (VMM)

Flood

Identity Theft

Earthquake

The correct additional peril that can be purchased with Extended Coverage Perils is Vandalism & Malicious Mischief (VMM). Earthquake, Flood, and Identity Theft are not typically included as additional perils under Extended Coverage Perils.

Explanation

The correct additional peril that can be purchased with Extended Coverage Perils is Vandalism & Malicious Mischief (VMM). Earthquake, Flood, and Identity Theft are not typically included as additional perils under Extended Coverage Perils.

6. What peril is missing from the Broad perils on a Dwelling Policy?

Theft

Windstorm

Vandalism

Fire

Theft is the peril missing from the Broad perils on a Dwelling Policy. While fire, windstorm, and vandalism are typically covered under Broad form policies, theft would require a separate endorsement or specific policy for coverage.

Explanation

Theft is the peril missing from the Broad perils on a Dwelling Policy. While fire, windstorm, and vandalism are typically covered under Broad form policies, theft would require a separate endorsement or specific policy for coverage.

7. What does Coverage D on a DP policy provide?

Fair Rental Value- covers loss of rental income for landlords.Excludes cancellation of a lease

Personal Property - covers the belongings of the homeowner.

Additional Living Expenses - covers temporary housing for the homeowner.

Liability - covers injuries to guests on the property.

Coverage D on a DP policy specifically pertains to Fair Rental Value, focusing on rental income for landlords.

Explanation

Coverage D on a DP policy specifically pertains to Fair Rental Value, focusing on rental income for landlords.

8. What is coverage E on a DP policy?

Personal Property coverage - Covers personal belongings inside the property.

Liability coverage - Covers legal expenses and medical bills if someone is injured on your property.

Additional Living ExpenseCovers for consequential/indirect lossesi.e. hotel

Dwelling coverage - Covers the physical structure of the property only.

Coverage E on a DP policy, which stands for Additional Living Expense, is designed to cover for consequential or indirect losses such as having to stay in a hotel while unexpected repairs are made to the insured property.

Explanation

Coverage E on a DP policy, which stands for Additional Living Expense, is designed to cover for consequential or indirect losses such as having to stay in a hotel while unexpected repairs are made to the insured property.

9. What is the Special Limit/Sub-limit for rowboats and canoes?

$1000

$1500

$2000

$500

The correct Special Limit/Sub-limit for rowboats and canoes is $1000. This amount refers to the maximum coverage provided for these watercrafts under the insurance policy.

Explanation

The correct Special Limit/Sub-limit for rowboats and canoes is $1000. This amount refers to the maximum coverage provided for these watercrafts under the insurance policy.

10. What is the basis of recovery/loss valuation for Coverage A & B on a DP-1?

Actual Cash Value

Replacement Cost

Market Value

Agreed Value

The basis of recovery/loss valuation for Coverage A & B on a DP-1 policy is Actual Cash Value, which takes into account depreciation and the current condition of the property.

Explanation

The basis of recovery/loss valuation for Coverage A & B on a DP-1 policy is Actual Cash Value, which takes into account depreciation and the current condition of the property.

11. What is the basis of recovery/loss valuation for Coverage A & B on the DP-2 and DP-3?

Actual Cash Value

Replacement Cost

Market Value

Book Value

The basis of recovery/loss valuation for Coverage A & B on the DP-2 and DP-3 policies is Replacement Cost, which ensures that the damaged property can be repaired or replaced with similar materials of like kind and quality without depreciation.

Explanation

The basis of recovery/loss valuation for Coverage A & B on the DP-2 and DP-3 policies is Replacement Cost, which ensures that the damaged property can be repaired or replaced with similar materials of like kind and quality without depreciation.