Dwelling (DP)

Which of the following claims would be covered under the DP-3?

• Damage to a fence due to freezing and thawing of ice due to a winter storm

• Wind damage to TV antennas

• Theft to a dwelling under construction

• Damage by vandalism to a dwelling vacant for 30 days before the loss

The DP-2 Broad form EXCLUDES coverage for which of the following perils?

• Riot

• Smoke

• Glass breakage

• Theft

An unendorsed DP-3 policy does not provide coverage for which of the following exposures?

• debris removal
• storage sheds
• theft
• garages

The DP-3 Dwelling Form contains all of the following coverages EXCEPT:

• Coverage B – Other Structures

• Coverage A – Land

• Coverage C – Personal Property

• Coverage D – Fair Rental Value

Answer explanation

Coverage A is for the dwelling/structure, not for Land, land is never covered.

Vandalism and Malicious Mischief (VMM) is an optional coverage that can be added by endorsement to which policy?

• DP-1
• DP-4
• DP-2
• DP-3

Jennifer owns a dwelling, and rents the detached garage to tenants. The premises are insured under a DP-3 with a limit of $100,000 for Coverage A. How much is the detached garage insured for if damaged by a covered claim?

• $5,000
• $20,000
• $50,000
• $10,000

Which coverage applies to the building described in the Dwelling’s policy Declarations?

• Coverage B
• Coverage A
• Coverage C
• Coverage E

Which statement concerning the Dwelling Special Form (DP-3) is true?

• Coverages A through D provide open perils coverage on an ACV basis
• Contents are provided open perils coverage on a replacement cost basis
• Contents are provided open perils coverage on an ACV basis
• The dwelling and other structures are provided open perils coverage on a replacement cost basis

Under Coverage C of the Special Dwelling Form, all of the following are included, except:

• Household and personal property
• Property of others that is in the care, custody, and control of the insured
• At the insured's option, property of guests and servants
• Pets belonging to the insured

A dwelling is insured for $60,000 and its contents for $30,000. According to the DP-1, what part of the insurance may the insured have applied to rental value coverage?

• 20% of the coverage on the dwelling

• 5% of the coverage on the dwelling, and a monthly maximum of $250

• 10% of the policy limits with a monthly maximum of $750

• 5% of the entire policy with a monthly maximum of $750

Answer explanation

The insured can apply up to 20% of the dwelling amount to be used for the indirect loss of rents due to a covered loss. However, this payment will reduce the Coverage A amount left for the damage to the dwelling because the coverage do NOT stack on Dwelling.