CHAPTER 5 DWELLING POLICY EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026
Which of the following is true regarding the Personal Liability Supplement? - Answers It provides
coverage for claim expenses, first aid expenses, and damage to property of others
P owns and occupies a home insured on a Special Form Dwelling policy (DP-3). The property includes
a newly repaired garage attached to the home. P also finished constructing a separate building on the
property that contains a garage and living space that P is currently renting out to G. P's Dwelling policy
would cover: - Answers P's clothing and electronics in the dwelling under Coverage C
Which of the following property is not covered under Coverage A of a Dwelling Policy? - Answers The
land on which the dwelling is located
N has a Basic Form Dwelling policy, with Extended Coverages and vandalism coverage. Coverage D of
the policy provides coverage for: - Answers The loss of rental income after a fire loss to a dwelling unit
rented to a tenant
Which of the following is correct regarding damage caused by vandalism under the Basic Dwelling
Form? - Answers Vandalism coverage must be added by the VMM Endorsement
All of the following are true regarding the Broad Theft Endorsement on a Dwelling policy, except: -
Answers Only on-premises coverage is available
The abrupt falling down or caving in of a building disallowing it to be used for its intended purpose is
the definition of: - Answers collapse
Dwelling and Homeowners policies define earth movement to include all of the following perils,
except: - Answers volcanic eruption
Which property is eligible for a Broad Form Dwelling policy? - Answers A four-family dwelling with
three roomers
Which of the following losses would be covered under the DP-1? - Answers Fire damage to building
materials on the insured premises
The Dwelling Program offers insurance for _____ dwellings otherwise ineligible for a Homeowners
policy due to age, value, or location - Answers residential
Eligible dwellings may have up to ___ dwelling units. Dwellings are limited to having no more than
____ roomers or boarders in order to maintain eligibility - Answers
______ that make use of the dwelling, like an office space or a studio for music lessons, are allowed -
Answers incidental business occupancies
______ with permanent foundations are eligible for the Basic Form - Answers mobile homes
______ are never eligible - Answers farm dwellings
coverage ___ insures the dwelling and attached structures. - Answers A
coverage ___ covers other structures separated from the dwelling by a clear space. - Answers B
coverage __ covers personal property - Answers C
Coverage ____ pays for the fair rental value of the part of the dwelling that was or could have been
rented to someone but cannot be due to a covered direct loss - Answers D
coverage _____ pays for the increase in living expenses that result from a covered loss. Coverage for
additional living expenses is not available for the Basic Form - Answers E
______ (Basic Form) automatically insures against the named perils of fire, lightning, and internal
explosion. Extended Coverages and vandalism and malicious mischief coverage are available for an
additional cost - Answers DP-1
This coverage applies to Coverages A, B, and C, and all losses are paid on an ______ - Answers actual
cash value basis
______ Broad Form) insures against named perils that include the Basic Form's base perils, EC and
VMM perils, and certain other perils - Answers DP-2
Losses under Coverages A and B are settled on a ______ cost basis. Losses under Coverage C are
settled on an _______ basis - Answers replacement / actual cash value
_______ is the Special Form. It provides coverage on an open perils basis, which includes all of the
Broad Form's covered perils and any other peril that is not specifically excluded - Answers DP-3
_______ condition qualifies replacement cost coverage for the Broad and Special forms. - Answers
loss settlement
In order for the insurer to pay the replacement cost, the Coverage A limit must be maintained to
value—at least ____% of the full replacement cost of the building immediately before the loss. -
Answers 80
Which of the following is true regarding the Personal Liability Supplement? - Answers It provides
coverage for claim expenses, first aid expenses, and damage to property of others
P owns and occupies a home insured on a Special Form Dwelling policy (DP-3). The property includes
a newly repaired garage attached to the home. P also finished constructing a separate building on the
property that contains a garage and living space that P is currently renting out to G. P's Dwelling policy
would cover: - Answers P's clothing and electronics in the dwelling under Coverage C
Which of the following property is not covered under Coverage A of a Dwelling Policy? - Answers The
land on which the dwelling is located
N has a Basic Form Dwelling policy, with Extended Coverages and vandalism coverage. Coverage D of
the policy provides coverage for: - Answers The loss of rental income after a fire loss to a dwelling unit
rented to a tenant
Which of the following is correct regarding damage caused by vandalism under the Basic Dwelling
Form? - Answers Vandalism coverage must be added by the VMM Endorsement
All of the following are true regarding the Broad Theft Endorsement on a Dwelling policy, except: -
Answers Only on-premises coverage is available
The abrupt falling down or caving in of a building disallowing it to be used for its intended purpose is
the definition of: - Answers collapse
Dwelling and Homeowners policies define earth movement to include all of the following perils,
except: - Answers volcanic eruption
Which property is eligible for a Broad Form Dwelling policy? - Answers A four-family dwelling with
three roomers
Which of the following losses would be covered under the DP-1? - Answers Fire damage to building
materials on the insured premises
The Dwelling Program offers insurance for _____ dwellings otherwise ineligible for a Homeowners
policy due to age, value, or location - Answers residential
Eligible dwellings may have up to ___ dwelling units. Dwellings are limited to having no more than
____ roomers or boarders in order to maintain eligibility - Answers
______ that make use of the dwelling, like an office space or a studio for music lessons, are allowed -
Answers incidental business occupancies
______ with permanent foundations are eligible for the Basic Form - Answers mobile homes
______ are never eligible - Answers farm dwellings
coverage ___ insures the dwelling and attached structures. - Answers A
coverage ___ covers other structures separated from the dwelling by a clear space. - Answers B
coverage __ covers personal property - Answers C
Coverage ____ pays for the fair rental value of the part of the dwelling that was or could have been
rented to someone but cannot be due to a covered direct loss - Answers D
coverage _____ pays for the increase in living expenses that result from a covered loss. Coverage for
additional living expenses is not available for the Basic Form - Answers E
______ (Basic Form) automatically insures against the named perils of fire, lightning, and internal
explosion. Extended Coverages and vandalism and malicious mischief coverage are available for an
additional cost - Answers DP-1
This coverage applies to Coverages A, B, and C, and all losses are paid on an ______ - Answers actual
cash value basis
______ Broad Form) insures against named perils that include the Basic Form's base perils, EC and
VMM perils, and certain other perils - Answers DP-2
Losses under Coverages A and B are settled on a ______ cost basis. Losses under Coverage C are
settled on an _______ basis - Answers replacement / actual cash value
_______ is the Special Form. It provides coverage on an open perils basis, which includes all of the
Broad Form's covered perils and any other peril that is not specifically excluded - Answers DP-3
_______ condition qualifies replacement cost coverage for the Broad and Special forms. - Answers
loss settlement
In order for the insurer to pay the replacement cost, the Coverage A limit must be maintained to
value—at least ____% of the full replacement cost of the building immediately before the loss. -
Answers 80
