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 nothing because vandalism losses are excluded after 60 days of vacancy
c.Pays only the cost of repainting walls, not personal property
d.Pays one-half of the loss as a vacancy-coinsurance penalty
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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