Dwelling PolicyQuestion 83 of 158
A California landlord on a DP-3 asks whether a future earthquake that damages the rental house will be covered. Which response is correct?
a.Yes — DP-3 covers earthquake on an open-perils basis
b.Yes — earthquake is automatically included as a broad peril on DP-3
c.No — earthquake is excluded; coverage must be obtained separately, typically through the California Earthquake Authority
d.Yes — but only the dwelling, not Coverage D Fair Rental Value, is covered for earthquake
Explanation
Earthquake is excluded under every Dwelling Policy form. A California landlord who wants earthquake coverage must obtain it through a separate endorsement or, more commonly, through a California Earthquake Authority (CEA) companion policy purchased through a participating insurer. Flood is similarly excluded and is obtained through the National Flood Insurance Program (NFIP). DP-3's open-perils language applies subject to the policy's specific exclusions, which include earth movement and water from flooding.
Law Reference: ISO Dwelling forms — Earthquake and Flood exclusions; CEA; NFIPPractice all 158 questions free — no signup required.
Related questions on this topic
- Under a standard DP-3 without additional endorsements, how is a covered loss to the named insured's Coverage C personal property settled?
- A landlord who rents out a single-family house on a DP-3 asks whether theft losses to the dwelling are covered. Which statement is MOST accurate?
- A homeowner uses a DP-3 to cover a vacation cabin she personally occupies four months each year. When a covered fire makes the cabin uninhabitable during her stay, which DP coverage reimburses her extra hotel and meal costs?
- Which of the following correctly distinguishes the Dwelling Policy from the Homeowners Policy?
- A DP-3 dwelling insured for $300,000 (which equals 100% of its replacement cost) burns to the ground. The loss is total. Ignoring deductibles, what does the insurer pay?
- A broker writes a DP-3 on a client's three-unit rental building. The client also wants protection if a tenant sues for an injury on the premises. What is the proper way to add that protection?
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