DP-3 Insurance Policy Quiz

Which of the following is NOT covered under the 'Trees, shrubs and other plants' coverage?

• Explosion

• Lightning

• Theft

• Fire

Answer explanation

Theft is not covered under 'Trees, shrubs and other plants' coverage, while explosion, lightning, and fire are typically included in such policies.

Which of the following is a covered cause of collapse under the DP-3 policy?

• Earthquake

• Flood

• Weight of snow

• Settling

Answer explanation

Under the DP-3 policy, the weight of snow is a covered cause of collapse, while earthquakes, floods, and settling are not covered. Therefore, weight of snow is the correct answer.

Which of the following is NOT an exclusion under the 'Broad theft coverage' endorsement?

• Theft of property in the mail

• Theft of credit cards

• Theft of animals

• Theft of model aircraft

Answer explanation

Theft of model aircraft is NOT covered under the 'Broad theft coverage' endorsement, while theft of property in the mail, credit cards, and animals are typically included in the coverage.

Which of the following is NOT a covered peril for ordinance or law under the DP-3 policy?

• Construction due to personal preference

• Increased cost of repair due to local ordinances

• Demolition due to state laws

• Remodeling due to federal laws

Answer explanation

The correct choice is 'Construction due to personal preference' because it is not a covered peril under the DP-3 policy. The other options relate to legal requirements, which are covered.

Which of the following is NOT a covered peril for collapse under the DP-3 policy?

• Hidden decay

• Insect damage

• Poor construction

• Earthquake

Answer explanation

The DP-3 policy does not cover collapse due to earthquake, making it the correct answer. Hidden decay, insect damage, and poor construction are typically covered perils.

Which of the following is NOT a specific exclusion under the DP-3 policy?

• Collapse due to non-covered perils

• Fire damage

• Freezing of plumbing without reasonable care

• Theft from a dwelling under construction

Answer explanation

Fire damage is not a specific exclusion under the DP-3 policy, as it is typically covered. The other options represent exclusions or conditions that limit coverage.

What is the coverage limit for ordinance or law under the DP-3 policy?

• 5% of Coverage A

• 10% of Coverage A

• 15% of Coverage A

• 20% of Coverage A

Answer explanation

The DP-3 policy provides coverage for ordinance or law at a limit of 10% of Coverage A. This means if you have a total Coverage A amount, you can claim up to 10% for costs related to compliance with building laws.

Which of the following is NOT covered under the 'Glass or safety glazing material' coverage?

• Breakage of glass

• Damage caused by glass breakage

• Breakage in a building vacant for more than 60 days

• Breakage due to fire

Answer explanation

Breakage in a building vacant for more than 60 days is not covered under 'Glass or safety glazing material' coverage, as most policies exclude damage in unoccupied buildings.

Which of the following is NOT covered under the 'Broad theft coverage' endorsement?

• Theft from a vacant dwelling for more than 60 days

• Vandalism as a result of theft

• Theft of business property

• Theft of personal property

Answer explanation

The 'Broad theft coverage' endorsement excludes theft from a vacant dwelling for more than 60 days, making it the correct answer. Other options, like vandalism from theft and theft of property, are covered.

What is the limit for fire department service charges under the DP-3 policy?

• $750

• $1000

• $500

• $250

Answer explanation

The limit for fire department service charges under the DP-3 policy is $500. This amount is specified in the policy guidelines, making it the correct choice among the options provided.