Unit 7-Dwelling Insurance

Suppose you own a duplex as an investment that you rent to two separate families. Which of the following policy types would your duplex be eligible for?

• Homeowners

• Dwelling

• Renters

• Tenants

A Broad Form Dwelling Policy, with E.C. endorsement, would include coverages for which of the following causes of loss?

I Windstorm III Liability

II Theft IV Removal

• I only

• II only

• I and IV only

• II and III

Which of the following items are covered under a Dwelling Form Coverage C?

• Money

• Rowboats and canoes

• Birds or fish

• Bank notes

Under the Dwelling Policy Program, which of the following would be classified as part of the "dwelling"?

I Building Materials used to repair the dwelling

II Appurtenant (other structures)

III Personal property of the insured

IV Equipment used to maintain the dwelling

• I only

• II only

• I and IV

• II and III

Which of the following DP Forms would be called the Broad Form?

• DP-1

• DP-2

• DP-3

• DP-4

Which of the following DP Forms would give you ALL RISK coverage on the contents?

• It is not available

• DP-2

• DP-3

• DP-4

Which of the following DP Forms would give you ALL RISK coverage on the dwelling?

• It is not available

• DP-2

• DP-3

• DP-4

In which of the following DP forms is there no coverage on the dwelling?

• DP-1

• DP-2

• DP-3

• DP-4

Which of the following is the coinsurance formula?

This is the correct answer, just remember it

• Insurance Carried divided by insurance required

• times the loss

• equals

• the amount the company pays

Maxwell Smart owns a Broad Named Peril policy that covers his house for losses caused by falling objects. The fair market value of the house is $60,000 and the replacement cost is $40,000 and there is a flat $500 deductible. If the house suffers a $30,000 loss as a result of a falling meteor, Maxwell should collect

• $40,000

• $30,000

• $29,500

• None