Dwelling PolicyQuestion 76 of 158
A landlord's DP-3 rental house has been vacant for 75 consecutive days while between tenants. Vandals break in and spray-paint the interior. How does the policy respond?
a.Pays in full because vandalism is an open peril under DP-3
b.Pays one-half of the loss as a vacancy-coinsurance penalty
c.Pays nothing because vandalism losses are excluded after 60 days of vacancy
d.Pays only the cost of repainting walls, not personal property
Explanation
Under the DP vacancy condition, once the dwelling has been vacant more than 60 consecutive days immediately before a loss, the insurer will not pay for losses caused by vandalism or malicious mischief, glass breakage, sprinkler leakage, water damage, or theft (if endorsed). The 75-day vacancy crosses the 60-day threshold, so the vandalism loss is excluded. Some other perils such as fire would still be covered.
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Related questions on this topic
- By default, on what valuation basis does the DP-1 Basic Form settle a partial loss to the dwelling?
- A landlord's tenant must move out for three months while fire damage to the rented house is repaired. Which DP coverage reimburses the landlord for the rent the tenant would have paid?
- A landlord insured under a DP-3 is sued by a tenant who slipped on a broken porch step. What does the base DP-3 pay toward the landlord's liability defense?
- A DP-3 dwelling has a replacement cost of $500,000. The landlord carries $300,000 of insurance and suffers a $60,000 partial loss with a $1,000 deductible. Using the coinsurance proportionate formula, what is the insurer's payment?
- Under a DP-3 written with $400,000 Coverage A, what is the automatic limit available for Coverage B (Other Structures) such as a detached garage?
- Which of the following is one of the BROAD perils added by the DP-2 Broad Form on top of the basic DP-1 perils?
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