Term
| There are _____ (_) Dwelling Policy Forms available in Texas. |
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Definition
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Term
| The ______ _____ _______ are for residential property owners who do not quality for Homeowner policies. The ____ ______ ______ are contracts that provide a package for coverage's for dwellings. Most dwelling forms are for _____ _____. However, some ______ _______ are permitted in the forms. For example, some churches, photography studios, law offices, and private schools are premitted. |
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Definition
| Dwelling Policy Forms, Dwelliing Policy Forms, residential living, business occuppancies |
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Term
| The three dwelling policy forms available in Texas are : |
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Definition
- Texas Dwelling Policy Form 1
- Texas Dwelling Policy Form 2
- Texas Dwelling Policy Form 3
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Term
| These policies are also reffered to as the ______ ______ (____-_), the ______ ______ (____-_), and the ___ ___ ____ (___-_). |
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Definition
| Limited Form (TDP-1), Broad Form (TDP-2), All Risk Form (TDP-3). |
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Term
| Typically, _____ _____ are for individuals who own rental property, and the property is occupied by a tenant. The dwelling would be covered under the _____ ______, while the tenant's personal property would be covered under a ______ _____. |
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Definition
| dwelling forms, dwelling forms, Renter's Policy |
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Term
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Definition
| is the most basic insurance policy available for rental properties. It provides very basic insurance coverage for rental properties. There is no Personal Liability Coverage. The ____-_ insurance policy is a named perils insurance policy. This means that all the perils that are insured are specifically listed (or named) in the policy itself. The insurance coverage is restricted to the perils that show up in the policy. |
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Term
| The following perils are the most common perils that are insured against with TDP-1 insurance: |
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Definition
- Fire (Default Coverage)
- Lighthning (Default Coverage)
Optional Perils:
- Riot
- Explosion
- Vehicle
- Civil Commotion
- Hurricane
- Smoke
- Hail
- Windstorm
- Vandalism (optional)
- ***No Theft Coverage****
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Term
| It is important to point out that ___ ___ TDP-1 insurance policies cover all of the perils listed above. For example, Vandalism & Malicious Mischief is an endorsement (add-on) with many TDP-1 insurance policies, and is not always automatically included. The above list what the ____ ______ TDP-1 insurance policy will cover. |
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Definition
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Term
Most TDP-1 insurance policies are _____ ____ _____ (____) insurance policies. ______ ____ _____ is the replacement cost , less applicable depreciation.
For example, if a dwelling sustains hail damage to the roof. The replacement cost of the damaged roof is $14,000. In this example, the roof is 10 years old. If the depreciation rate for roofing was assessed at 5% per year, the depreciation would be at 50%. 50% of $14,000 is $7,000. the ACV settlement would be $7,000 less the applicable deductible. |
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Definition
| Actual Cash Value (ACV), Actual Cash Value |
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Term
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Definition
| is one of three insurance policies that are most commonly used for rental properties. It provides adequate coverage for most landlords and property owners. The ___-__ is considered a middle-of the road landlord insurance policy, providing coverage that fits somewhere between the TDP-1 and the TDP-3. It is not the most basic insurance, but it's not the best. |
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Term
| The TDP-2 is a ____ ____ _____. Rental Dwelling insurance policies come in two different categories: ____ ____ _____ and ____ ____ _______. The ____-_ and ____-_ are both named peril policies. The ___-_ only covers perils listed in the policy. |
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Definition
| Named Peril Policy, name peril policiesm, all risk policies, TDP-1 and TDP-2, TDP-2 |
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Term
| The following is a list of the most common perils that are included in a TDP-2 broad form policy: |
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Definition
- Fire
- Lightning
- Riot
- Explosion
- Vehicle
- Civil Commotion
- Windstorm/ Hurricane
- Smoke
- Hail
- Vandalism
- Accidental Discharge of Water
- Freezing of Household Appliances
- Falling Objects
- Collapse of Building
- *** No Theft Coverage***
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Term
| Under the TDP-2 policy, if anything happens to the property that is __ included on this list, the policy ___ ___ insure the damage , and it will not receive coverage. |
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Definition
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Term
| One of the most important distinctions between the TDP-1 and the TDP-2 is |
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Definition
| the distinction between Actual Cash Value (ACV) and Replacement Cost insurance . |
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Term
| The ____-_ is a replacement cost insurance policy. _____ ______ means that the _____ settlement will be at Actual Cash Value. Once the repairs to the property are completed, the depreciation that was withheld can be _______ to the policyholder. |
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Definition
| TDP-2, Replacement Cost, initial, reimbursed |
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Term
| One type of coverage that is available (and often included in TDP-2 insurance) is ____ ____ _____ coverage. ______ ___ ______ coverage is meant to provide the insured with continuing rental income while the home is being repaired due to damage from a covered peril. |
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Definition
| Loss of Rents, Loss of Rents |
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Term
| Without ____ __ ____ coverage, if a rental property gets damaged to the point where the renters have to move out while the home gets repaired, the policyholder will ____ _____ the rent from those months. ___ ____ ____ prevents the insured from having no rental income due to damage to the home. |
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Definition
| Loss of Rents, never collect, Loss of Rents |
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Term
| It is important to note that most ____-_ insurance policies will not cover a majority of the perils listed in the policy if the home has ___ ____ for a period of time. In a typical ___-_ , the length of time the home can be vacant and still receive full insurance is either ____ ___ ___ or ____, depending on the contractual language of the policy. |
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Definition
| TDP-2, been vacant, TDP-2, less than 30 or 60 days |
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Term
| The TDP-3 insurance policy |
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Definition
| is considered the best insurance policy for rental properties. It provides excellent coverage for property owners who are looking to get excellent insurance for their rental properties. The TDP-3 insurance is best suited for rental properties or non-owner occupied homes. In the past, many insurance companies used various TDP products (like the ____-_) to insure owner- occupied homes. In more recent years, the ___-_ policy and other similar insurance policies have been used primarily to insure rentals, while Homeowner policies have been used primarily to insure owner-occupied homes. |
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Term
| Dwelling fire insurance policies come in two different policy categories: _____ ___ ____ and ___ ___ ____. The ____-_ and ____-_ are ___ ___ ____, while the ____-_ is an ___ ___ ___. ___ ___ insurance policies are policies that specifically list the perils that are insured under the policy. ___ ____ policies, on the other hand, are insurance policies that cover all possible perils, with the exception of a small list of perils that are excluded from the policy. |
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Definition
| named peril and all risk, TDP-1 and TDP-2, named peril policies, TDP-3, all risk policy, Named peril, All risk |
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Term
| The following perils are the most common perils that are excluded from TDP-3 insurance coverage: |
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Definition
- Ordinance or Law
- Earth Movement
- Water Damage
- Power Failure
- Neglect
- War
- Nuclear Hazard
- Intentional Loss
- Government Action
- Wear and Tear
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Term
| The ___-_ is a replacement cost insurance policy. |
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Definition
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Term
| The standard ___-_ policy comes with a similar package offered by home owner insurance policies. A typical home insurance company will include the following five sections of coverage: |
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Definition
TDP-3
- Dwelling
- Other Structures
- Personal Property
- Loss of Use
- Liability
- Medical Payments
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Term
The TDP-3 policy is very similar to the standard home insurance package, with a few exceptions. The TDP-3 still has to insure the entire home and out-buildings, and still provides general liability coverage, so it makes sense that these areas are similar to home insurance policies. ______ _______ is an area where the TDP-3 differs from a similar home insurance policy. Due to the fact that the policy is used primarily for ____ ____ and __ ___ occupied dwellings, the amount of personal property attached to dwelling policies is ___ ____.
For example, many TDP-3 insurance policies only have enough personal property coverage to insure major appliances like refrigerators, washing machines, and other personal items that are used essentially to service or maintain the dwelling. |
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Definition
| Personal Property, rental homes and non-owner, much less |
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Term
| One of the biggest differences between dwelling fire insurance and home insurance is ____ ___ ___ and ____ __ _____. |
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Definition
| Loss of Use, Loss of Rents |
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Term
| Loss of Use insurance is used primarily in _____ _______ policies, not dwelling fire insurance policies. |
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Definition
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Term
| ____ __ ____ coverage is used to cover additional living expenses a homeowner may pay while their home is being repaired. Due to the fact that most TDP-3 insurance policies are __-___ occupied, Loss of Use coverage is not relevant. |
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Definition
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