Dwelling Policy (DP)Question 314 of 531
A dwelling insured on a special form cracks as the soil beneath the foundation shifts. The claim is:
a.denied; the form insures contents only
b.paid as a collapse of the building
c.denied; earth movement is excluded
d.paid, because the form is open perils
Explanation
Open perils means every cause of loss except the ones the form excludes, and earth movement is a standard exclusion, so shifting soil is unpaid even on the broadest dwelling form. The error is reading open perils as unlimited. Collapse wording does not restore a cause of loss the policy already excluded, and the special form insures the dwelling, not contents alone.
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