Term
NAME THE 3
DIRECT LOSS COVERAGES. |
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Definition
1) Coverage A-Dwelling Building
2) Coverage B-Other Structures
3) Coverage C-Personal Property |
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Term
DESCRIBE DWELLING FORM DIRECT LOSS COVERAGE A. |
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Definition
| Dwelling Building-Coverage is provided on the dwelling as well as any structure attached to the dwelling. The insured sets the amount of coverage based on the replacement cost. Coverage also includes materials and equipment used for construction/maintenance of premises and building. |
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Term
DWELLING FORM DIRECT LOSS COVERAGE A INSURES BASED ON REPLACEMENT COST EXCEPT: |
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Definition
| The DP-1 which pays all losses on an ACV (Actual Cash Value) basis. |
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Term
DESCRIBE DWELLING FORM DIRECT LOSS COVERAGE B. |
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Definition
| Other Structures-pertains to structures detached such as detached garages and maintenance sheds. 10% of the Coverage A amount. |
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Term
TO WHAT DOES COVERAGE B NOT APPLY? (4) |
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Definition
1) Used for business or farming
2) Rented, unless it is used solely as a private garage.
3) Structures used to store gaseous or liquid fuel.
4) Grave markers and mausoleums. |
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Term
WHAT DOES COVERAGE B MEAN FOR DP-2 & DP-3 FORMS? |
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Definition
| 10% of the Coverage A amount which is an ADDITIONAL AMOUNT of insurance. |
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Term
WHAT DOES COVERAGE B MEAN FOR THE DP-1 FORM? |
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Definition
| If the insured has a detached structure the 10% of Coverage A is included in the dwelling limit and is not an additional separate coverage limit. |
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Term
DESCRIBE DWELLING FORM DIRECT LOSS COVERAGE C. |
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Definition
| Personal Property-The insured sets the limit based on the ACTUAL CASH VALUE of the property.A limit must be shown on the Declarations page and a premium must be paid. |
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Term
DOES COVERAGE C PROVIDE COVERAGE FOR PERSONAL PROPERTY OFF PREMISES? |
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Definition
| Yes, but only 10% of the limit declared for Coverage C. |
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Term
HOW DOES COVERAGE C APPLY FOR AN INSURED WHO ACQUIRES A NEW PRINCIPLE RESIDENCE? |
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Definition
| Coverage will automatically apply at the new location for 30 days immediately after the insured begins to move the property. |
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Term
IF YOU HAVE $20,000 OF PERSONAL PROPERTY COVERED BY THE POLICY AND 1/2 OF YOUR COVERED PROPERTY IS DESTROYED BY A COVERED PERIL WHEN MOVED TO A NEWLY ACQUIRED PRINCIPAL RESIDENCE, HOW MUCH IN COVERAGE C WILL APPLY AT THE NEW LOCATION? WHY? |
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Definition
| $10,000 in coverage C will apply. the insurers limit of liability is limited to the proportion of the limit of liability that the value at each residence bears to the total value of all personal property covered by the policy. |
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Term
WHAT PERSONAL PROPERTY TYPES ARE EXCLUDED UNDER COVERAGE C?(10) |
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Definition
1) Accounts
2) Currency
3) Personal Records
4) Bullion
5) Animals
6) Models
7) Boats
8) Data
9) Vehicles
10) Grave markers |
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Term
NAME THE 2 INDIRECT LOSS COVERAGES. |
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Definition
1) Coverage D-Fair Rental Value
2) Coverage E-Additional Living Expense |
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Term
DESCRIBE DWELLING FORM INDIRECT LOSS COVERAGE D. |
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Definition
| Fair Rental Value-will pay the rental value minus expenses which do not continue (gas & electricity) |
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Term
UNDER COVERAGE D, WHAT HAPPENS FOR THE INSURED IF A CIVIL AUTHORITY WILL NOT PERMIT THE INSURED TO USE HIS COVERED PROPERTY DUE TO DIRECT DAMAGE TO A NEIGHBORING LOCATION? |
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Definition
| If the peril was insured against in the policy, there is coverage for the fair rental value loss for 2 weeks. |
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Term
WHAT IS THE FAIR RENTAL VALUE LIMIT UNDER THE DP-1 FORM? |
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Definition
| 20% of Coverage A. It is not additional coverage under the DP-1, but is included in the dwelling coverage A limit. |
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Term
WHAT IS THE FAIR RENTAL VALUE LIMIT UNDER THE DP-2 & DP-3 FORMS? |
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Definition
| 20% Coverage A, but it is an ADDITIONAL AMOUNT of coverage. |
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Term
DESCRIBE DWELLING FORM INDIRECT LOSS COVERAGE E. |
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Definition
| Additional Living Expense-any necessary increase in living expenses (rent, meals out, laundry) incurred so that the household can maintain its normal standard of living. |
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Term
WHEN DOES THE DP-1 FORM PROVIDE FOR ADDITIONAL LIVING EXPENSE? |
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Definition
| Additional coverage must be purchased separately for the DP-1 because the DP-1 form does not automatically provide for additional living expense. |
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Term
FORMS DP-2 & DP-3 COMBINE THE FAIR RENTAL VALUE AND ADDITIONAL LIVING EXPENSE COVERAGE FOR UP TO _____ OF THE ______ WITHOUT ADDITIONAL CHARGE. |
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Definition
| Forms DP-2 & DP-3 combine the fair rental value and additional living expense coverage for up to 20% of the Coverage A limit without additional charge. |
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Term
WHAT ARE THE ADDITIONAL COVERAGES THAT ARE INCLUDED IN ALL FORMS OF THE DWELLING POLICY? (7) |
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Definition
1) Reasonable repairs-protect against further damage.
2) Debris Removal
3) Improvements-up to 10% of the Coverage C limit
4) Fire Department Service Charge $500
5) World-Wide Coverage-10% of the Coverage C limit while anywhere in the world.
6) Plants
7) Property Removed |
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Term
| WHAT IS ORDINANCE OR LAW COVERAGE AND WHAT FORMS COVER IT? |
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Definition
| Up to 10% of the Coverage A limit may be used to cover increased costs of repair/rebuilding after loss occurs due to the enforcement of any ordinance or law regulating construction, demolition, remodeling, etc. |
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