Dwelling Policy Insurance Exam UPDATED
QUESTIONS AND CORRECT ANSWERS
Dwelling Policies - CORRECT ANSWER Used to insure 1 to 4 residential dwellings
that are not eligible for homeowners including rental residences, seasonal dwellings, or
higher than acceptable risk for homeowners.
Basic Form - DP 1 - CORRECT ANSWER Coverage A - Dwelling
Coverage B - Other Structure
Coverage C - Personal Property
Coverage D - Fair Rental Value
Dwelling 1 - Basic Form - CORRECT ANSWER Insures against fire, lightning,
removal, and internal explosion.
Insured can chose extended coverage which adds coverage for: windstorm or hail, explosion,
volcanic eruption, riot or civil commotion, aircraft or vehicle ( damage due to direct physical
contact with an aircraft or vehicle not owned by the resident) and smoke.
If the insured gets extended coverage the he is eligible to add vandalism and malicious
mischief (V&MM) for additional premium.
If the building is vacant for more than 60 days, then V&MM, accidental discharge or
overflow of water or steam, or burglary damage to the building is NOT covered.
Dwelling 2 - Broad Form - CORRECT ANSWER Losses are covered on replacement
cost basis if insured maintains coverage equal to at least 80% of the replacement cost.
Covers all perils under the basic including EC and V&MM plus: damage by burglars (not
theft), weight of snow, ice or sleet, accidental discharge or overflow of water or steam,
freezing of plumbing, heating, a/c, or sprinkler systems, falling objects, artificially generated
electrical current, and tearing apart, cracking, burning, or bulging of a steam or water system.
QUESTIONS AND CORRECT ANSWERS
Dwelling Policies - CORRECT ANSWER Used to insure 1 to 4 residential dwellings
that are not eligible for homeowners including rental residences, seasonal dwellings, or
higher than acceptable risk for homeowners.
Basic Form - DP 1 - CORRECT ANSWER Coverage A - Dwelling
Coverage B - Other Structure
Coverage C - Personal Property
Coverage D - Fair Rental Value
Dwelling 1 - Basic Form - CORRECT ANSWER Insures against fire, lightning,
removal, and internal explosion.
Insured can chose extended coverage which adds coverage for: windstorm or hail, explosion,
volcanic eruption, riot or civil commotion, aircraft or vehicle ( damage due to direct physical
contact with an aircraft or vehicle not owned by the resident) and smoke.
If the insured gets extended coverage the he is eligible to add vandalism and malicious
mischief (V&MM) for additional premium.
If the building is vacant for more than 60 days, then V&MM, accidental discharge or
overflow of water or steam, or burglary damage to the building is NOT covered.
Dwelling 2 - Broad Form - CORRECT ANSWER Losses are covered on replacement
cost basis if insured maintains coverage equal to at least 80% of the replacement cost.
Covers all perils under the basic including EC and V&MM plus: damage by burglars (not
theft), weight of snow, ice or sleet, accidental discharge or overflow of water or steam,
freezing of plumbing, heating, a/c, or sprinkler systems, falling objects, artificially generated
electrical current, and tearing apart, cracking, burning, or bulging of a steam or water system.
