Coverage A
Dwelling
Coverage B
Personal Property
00:19
01:13
Coverage C
Loss of Use
Coverage A
is the dwelling and
... [Show More] dwelling extensions. The dwelling is the structure
used principally as a the private residence and the dwelling extensions are other
structures on the residence premises separated from the dwelling by clear space.
Structures connected to the dwelling by only a fence, utility line, or similar
connection are still considered to be other structures. Examples of dwelling
extensions would be detached garages, fences and in-ground swimming pools.
Sheds can be either Coverage A or Coverage B depending on if they are
permanently to or otherwise forming part of the realty. Dwelling extensions are
insured for 10% of the coverage A limit. So, if your home is insured for $100,000
then structures such as the detached garage and in-ground swimming pool would
be covered for $10,000. On page 3 of the policy (1.b.)
• Materials and supplies located on or adjacent to the residence premises
for use in the construction, alteration or repair of the dwelling or other
structures on the residence premises.
Coverage B
is personal property owned or used by an insured while it is anywhere
in the world. This coverage would include structures, such as sheds, not
permanently attached to the realty. As a general rule items that you would take
with you if you moved would be coverage B. One exception would be construction
supplies.
Coverage C: Additional Living Expense
provides coverage for up to 24 months when
a loss insured causes the residence to become uninhabitable. Example:
Apartment rent when after a hurricane causes extensive wind damage to
an insured's home.
Coverage C: Fair Rental Value
provides coverage for up to 12 months when you rent
a portion of your home to a tenant and a loss insured causes that portion
of the home to be uninhabitable. Example: You rent your garage
apartment to a tenant and it sustains heavy tree damage that will cause
the tenant to relocate for 2 months during the repair.
Coverage C: Prohibited Use
provides additional living expense and fair rental value
for a period of up to two weeks when a civil authority prohibits your use
of the residence premises because of direct damage to a neighboring
premise by a loss insured. Example: The civil authorities in your home
town will not allow you to return to your home for 3 days because of
tornado damage in the area.
Open Peril
mold, fungus, or wet or dry rot; settling, cracking, shrinking, bulging or expansion of pavements, patios, foundation, walls, floors, roofs or ceilings; earth movement-landslide, earthquake sinkhole; water damage-including flood a surface water
False. Coverage C - Loss of Use has 3 coverages (page 4):
• Additional Living Expense
• Fair Rental Value
• Prohibited Use
True or False: In the FP-7955 policy, Coverage C consists of three coverages:
• Additional Living Expense
• Fair Rental Value
• Property removed
Free standing gas grill and trampoline (definition of personal property page
3)
Which item(s) listed below would be considered Coverage B?
• Ceiling fan installed in the living room
• Water softener system
• Automatic garage door opener
• Free standing gas grill
• Trampoline
• Built-in microwave
Neither are covered. Personal property is covered for 16 named perils
(pages 7-9). Peril #10 covers falling objects but the description of the peril
says this peril does not include property contained in a building unless the
roof or an exterior wall of the building is first damaged by a falling object.
Damage to the falling object itself is not included.
Your middle schooler built a model plane and hung it from the ceiling.
During the night it fell and broke and also damaged an alarm clock. Which of
the following is correct?
• Both are covered
• Neither are covered
• Only model airplane is covered
• Only the alarm clock is covered [Show Less]