chapter 2

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

• 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

• 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

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

• 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

• 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

• 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

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

• - 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

• - 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

• - 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

• - 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

- 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

• 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

• 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

• 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

• 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

• 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

• 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

the insurer will not pay for lossess caused by law unless specifically provided under the policy

• 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

• 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

an insurer will not pay for lossess caused by the failure of power or other utility service

insurer will not pay for losses caused by neglect of the insured

insurer will not pay for losses caused by war

insurer wil not pay for losses cuased by any nuclear reaction except that fire resulting from the nuclear hazard is covered

insurer will not pay for losses by intentional act of the insured

• 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

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

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

• 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