chapter 2

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Author:
krys
ID:
57470
Filename:
chapter 2
Updated:
2010-12-31 03:33:37
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dwelling policy
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chapter 2
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  1. Dwelling policy
    to insure private residential property not occupided by its owner such as rental property or private residential property that is occupied by its owner but unqualify for the homeowner policy; have less restrictive eligibilty requirements
  2. eligibility
    • 1. must be used for dwelling purposes; not have more than four apartment units and not more than five roomers in total
    • 2. permanently located mobile homes are eligible only on the Basic Form; coverage not include an attached carport
    • 3. Incidental business occupanices like service type are permitted but do not include retail sales or manufacturing
    • 4. dwellings on farm insured under the farm property coverage; not eligible under Dwelling policy
  3. Dwelling coverage form
    DP-1 (Basic Form)
    • perils covered are fire, lightning, and internal explosion
    • perils of wind, hail, aircraft,..(other loss caused by earthquake, land shockwave or tremor) covered by additional premium Extended Coverage Endorsement (ECE). Perils of vandalism and malicious mischief- covered by additional premium Mischief Endorsement (VMM) for additional premium

    2. even if VMM added, exclude loss for vandalism occuring after 30 days of vacancy

    3. Losses paid on actual cash value basis to the insured
  4. Dwelling coverage form
    DP-2 (Broad Form)
    perils covered are those included under DP-1 with ECE and optional VMM endorsement attached; plus damage by burglers, falling objects, weight of snow, ice, and sleet, accidental discharge...

    2. the burglary damage peril - damage to the property caused by burglars not by theft; vechile peril - not include loss to a fence, driveway; smoke peril - not include loss caused by smoke from agricultural and industrial operations

    3. lossess to dwelling and other structures - paid on replacement cost basis, losses to contents - paid on actual cash value basis
  5. Dwelling coverage form
    DP-3 (Special form)
    • 1. covered all direct physical damage
    • 2. theft of property - covered as long as the dwelling is not under construction or has been vacant for more than 30days immediately preceiding the loss
    • 3. losses to dwelling and other structure - paid on replacement cost basis; losses to contents - paid on actual cash value basis
  6. Dwelling coverages
    • Coverage and what is covered
    • 1. Coverage A - dwelling plus other
    • 2. Coveage B - other structures (Items excluded)
    • 3. Coverage C - personal property
    • 4. Coverage D - fair rental value
    • 5. Coverage E - additional living expenses
    • 6. Other coverage extensions - miscellaneous
  7. Coverage A - Dwelling
    • applies to the dwelling describe in the Declaration including structures attached to the dwelling like garage;
    • cover materials and supplies on or next to the described location for repair of dwelling and building equipment and outdoor equipment ; coverage DOES NOT APPLY TO LAND
  8. coverage B
    applies to other sturcutres on the described location that are detached from the dwelling, does not apply to land, permissible to rent a private garage to another for garage purposes; coverage B limit is up to 10% of coverage limit; in DP-1 the limit does not increase the amount of insurance; DP-2 and DP-3 - limit increase the amout of insurance availabe beyond coverage A
  9. Coverage C
    Personal property
    • - applies to household and personal property
    • - per insured's request, personal property of a guest or servant can be covered while insured's tenant or boarder is not covered
    • - exlcudes bank accounts, coins and currency, animals, watercraft, motor vehicles,..
    • - may use up to 10% of the Coverage limit for loss
  10. Coverage D
    Fair rental value
    • - indirect loss property coverage following a direct loss to property described in coverage A,B or C
    • - limit up to 20% of coverage A
    • - DP-1 - limit not increase the amount of insurance available
    • - DP-2 and DP-2 - limit increaes the amt of insurance beyond the coverage A
  11. Coverage E
    Additional Living Expense
    • - indirect loss property coverage that applies following a direct loss to property described in Coverages A,B, or C
    • - automatically included only in DP-2 and DP-3
    • - up to 20% of Coverage A limit
    • - does increase the amout of insurance available
  12. Debris removal
    • - insurer pay the insured's resonable expenses for removal of debris if the property is damaged by an insured peril
    • - debris removal expense included in limit of insurance
  13. Improvements, Alternations and Additions
    - insured is tenant and at their own expenses make improvements, may use up to 10% of coverage C limit for loss casued by insured peril

    - DP-1 not incurease the amt of insurance available while DP-2 and DP-3 does increase the amt beyond C limit
  14. Resonable repairs
    • insurer pay the resonable cost to the insured for necessary measure to protect the property from furthre damage
    • - does not increase the limit of insurance
  15. Property removal
    • insurer insures covered propety against direct loss while being removed from a premises endangered by an insured peril
    • - DP -1 - covered for 5 days while removed
    • - DP-2 and 3 - for 30 days
    • - coverage not incrase the limit
  16. Trees, Shrubs, and other plants
    • coverage is provided for trees, shrubs, plants or lawns on the described location for loss
    • not covered the perils such as wind, hail, weight of snow, and loss by theft
    • limit - up of 5% of Coverage A limit no more than $500 for any one tree
    • coverage - in addition to A limit
  17. Fire Department Service Charge
    • the insurer will pay up to $500 for the insured's liability assumed by contract for fire department charges incurred when the fire department is called
    • not apply if the property located within the protection district of the fire department resoponse
    • additional insurace and no deductible
  18. Collapse
    • DP-2 and DP-3 forms - coverage is provided for direct physical loss to covered property involving collapse of a structure. NO DP-1 FORM
    • does not include settling, cracking, shrinking, bulging or expansion
    • does not increase the limit of insurance
  19. Glass or Safety Glazing Material
    • provided for the breakage of glass or safety glazing matier which is part of covered structure
    • does not inclue loss on the described location if it is vacant for 30 days immediately before the loss
    • loss settled by replacing with safety glazing materials by law
    • coverage does not increase the limit
  20. Ordinance or Law
    the insurer will not pay for lossess caused by law unless specifically provided under the policy
  21. Earth movement
    • insurer will not pay for losses caused by earthquake
    • if a direct loss ensue from the earth movement, then the policy would pay for the ensuing loss
  22. water damage
    • insurer will not pay for loss caused by flood
    • if a direct loss by fire or explosion resulting from water damage should occur the ensuing damage would be covered
  23. power failure
    an insurer will not pay for lossess caused by the failure of power or other utility service
  24. neglect
    insurer will not pay for losses caused by neglect of the insured
  25. war
    insurer will not pay for losses caused by war
  26. nuclear hazard
    insurer wil not pay for losses cuased by any nuclear reaction except that fire resulting from the nuclear hazard is covered
  27. intentional loss
    insurer will not pay for losses by intentional act of the insured
  28. Automatic increase in Insurance Endorsement
    • at the renewal date, an automatic increase in Coverage A and B limits of insurance based on inflation in geographic area; increase at 4%, 6% or 8%, will increase the premium
    • if there is a loss during the policy period, insured will receive the portion of the increase
  29. Broad Theft Coverage Endorsement
    an additional premium to cover theft of personal property and contents of owner-occupied dwellings, available on-premises and off-premises, amt of off premises - not exceed on premises; endorsement contains a list of property limited to a specific dollar amt and some not included
  30. Dwelling under construction endorsement
    intended occupant is the named insured, provides insured with coverage on dwelling Coverage A while dwelling is under construction, has a provisional limit, actual amt of insurance will be a % of provisional limit
  31. Personal Liability Supplement
    • an additional premium, provides Coverage L(Personal Liability) and Coverage M (Medical Payments to Others)
    • provide additional coverages for claim, first aid and physical damage expenses

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