Chapter 4 - Dwelling Policy Exam Questions and Answers Latest Update 2025
The Dwelling Broad Form (DP-2) includes coverage for all of the following, except: - Answers Water
damage by flood
-There is no flood coverage in a dwelling policy.
The Dwelling Broad Form (DP-2) includes coverage - Answers -Damage caused by burglars -but not
property taken by burglars
-Breakage of glass that is a part of a building, storm door or window
-Accidental discharge or overflow of water or steam from a heating or air conditioning system or
household appliance
Under the Dwelling Policy, household and personal property, including property damaged in transit
between the insured's old and new residences, are covered under: - Answers Coverage C
-Coverage C is the coverage for Personal Property. 10% of the Coverage C limits apply to the Insured's
Personal Property away from the premises anywhere in the world.
Special Form (DP-3) Dwelling Policy? - Answers Subject to coinsurance, coverage for the structure is
provided on a replacement cost basis
-DP-3 policies cover physical damage losses to the structure on a replacement cost basis, subject to the
usual 80% coinsurance requirement. Personal property is covered on an ACV basis, subject to policy
limits.
Under the Dwelling Forms, which coverage applies to the building described in the policy, including
materials on premises intended for repair or alterations? - Answers Coverage A
-Coverage A applies to the Dwelling at the described location; Coverage B,
to Other Structures; Coverage C, to Personal Property; Coverage D, to Fair Rental Value, and Coverage E
to Additional Living Expenses.
Basic Form (DP-1) - Answers Of the Dwelling Policy Forms, which one does not cover Damage by
Burglars?
Damage by Burglars is covered - Answers only in the broader Forms DP-2 and DP-3.
Which statement concerning the Dwelling Special Form is true? - Answers The contents are covered for
the Broad Form perils on an Actual Cash Value basis - Although the Dwelling Special Form provides Open
Perils Coverage for structures, it retains Broad Form Perils coverage on Coverage C, Personal Property.
Which is not eligible to be insured under a Dwelling Policy? - Answers Farms
, -The farm property exposure includes hazards not found in other residential property. Insurance
companies have developed special Farm Forms for farm property insurance.
Under the Basic Dwelling Form, is damage caused by vandalism automatically included? - Answers No, it
must be added by endorsement
-The Basic Dwelling Form is designed to provide coverage at a minimum cost. If the insured desires
vandalism coverage, attaching a Vandalism Coverage endorsement and charging a premium for the
endorsement provides it.
Under a Dwelling Policy, detached structures on the insured premises are included in: - Answers
Coverage B
The Dwelling Policy - Answers used to insure private residential property that is not occupied by its
owner, such as rental property, as well as some owner-occupied private residential property that does
not qualify for a Homeowners policy because of age, value, or location.
The Dwelling Policy - Answers cannot have more than 4 apartment units, nor more than 5 occupants in
total.
the Dwelling Special Form is true? - Answers The Dwelling and other structures are provided Open Perils
coverage on a Replacement Cost basis,but the Personal Property coverage remains as Broad Perils
coverage on an Actual Cash Value basis.
the Dwelling Broad Form, except: - Answers Smoke damage from industrial operations
the Dwelling Broad Form, except - Answers Smoke damage
-however, the description of the peril specifically excludes smoke from agricultural smudging or
industrial operations.
the Dwelling Broad Form - Answers Burglary Damage/Volcanic Eruption/Falling Objects
Under Dwelling Policies, which of the following require the policy to be written to at least 80% of the full
replacement cost of the dwelling at the time of loss to provide replacement cost coverage? - Answers
The DP-2 and the DP-3
- replacement cost coverage, provided, that the insured insures the property to at least 80% of its
replacement cost. The DP-1 (Basic) provides only Actual Cash Value coverage
DP-2 - Answers Broad
DP-3 - Answers Special
DP-1 - Answers Basic
-provides only Actual Cash Value coverage
The Dwelling Broad Form (DP-2) includes coverage for all of the following, except: - Answers Water
damage by flood
-There is no flood coverage in a dwelling policy.
The Dwelling Broad Form (DP-2) includes coverage - Answers -Damage caused by burglars -but not
property taken by burglars
-Breakage of glass that is a part of a building, storm door or window
-Accidental discharge or overflow of water or steam from a heating or air conditioning system or
household appliance
Under the Dwelling Policy, household and personal property, including property damaged in transit
between the insured's old and new residences, are covered under: - Answers Coverage C
-Coverage C is the coverage for Personal Property. 10% of the Coverage C limits apply to the Insured's
Personal Property away from the premises anywhere in the world.
Special Form (DP-3) Dwelling Policy? - Answers Subject to coinsurance, coverage for the structure is
provided on a replacement cost basis
-DP-3 policies cover physical damage losses to the structure on a replacement cost basis, subject to the
usual 80% coinsurance requirement. Personal property is covered on an ACV basis, subject to policy
limits.
Under the Dwelling Forms, which coverage applies to the building described in the policy, including
materials on premises intended for repair or alterations? - Answers Coverage A
-Coverage A applies to the Dwelling at the described location; Coverage B,
to Other Structures; Coverage C, to Personal Property; Coverage D, to Fair Rental Value, and Coverage E
to Additional Living Expenses.
Basic Form (DP-1) - Answers Of the Dwelling Policy Forms, which one does not cover Damage by
Burglars?
Damage by Burglars is covered - Answers only in the broader Forms DP-2 and DP-3.
Which statement concerning the Dwelling Special Form is true? - Answers The contents are covered for
the Broad Form perils on an Actual Cash Value basis - Although the Dwelling Special Form provides Open
Perils Coverage for structures, it retains Broad Form Perils coverage on Coverage C, Personal Property.
Which is not eligible to be insured under a Dwelling Policy? - Answers Farms
, -The farm property exposure includes hazards not found in other residential property. Insurance
companies have developed special Farm Forms for farm property insurance.
Under the Basic Dwelling Form, is damage caused by vandalism automatically included? - Answers No, it
must be added by endorsement
-The Basic Dwelling Form is designed to provide coverage at a minimum cost. If the insured desires
vandalism coverage, attaching a Vandalism Coverage endorsement and charging a premium for the
endorsement provides it.
Under a Dwelling Policy, detached structures on the insured premises are included in: - Answers
Coverage B
The Dwelling Policy - Answers used to insure private residential property that is not occupied by its
owner, such as rental property, as well as some owner-occupied private residential property that does
not qualify for a Homeowners policy because of age, value, or location.
The Dwelling Policy - Answers cannot have more than 4 apartment units, nor more than 5 occupants in
total.
the Dwelling Special Form is true? - Answers The Dwelling and other structures are provided Open Perils
coverage on a Replacement Cost basis,but the Personal Property coverage remains as Broad Perils
coverage on an Actual Cash Value basis.
the Dwelling Broad Form, except: - Answers Smoke damage from industrial operations
the Dwelling Broad Form, except - Answers Smoke damage
-however, the description of the peril specifically excludes smoke from agricultural smudging or
industrial operations.
the Dwelling Broad Form - Answers Burglary Damage/Volcanic Eruption/Falling Objects
Under Dwelling Policies, which of the following require the policy to be written to at least 80% of the full
replacement cost of the dwelling at the time of loss to provide replacement cost coverage? - Answers
The DP-2 and the DP-3
- replacement cost coverage, provided, that the insured insures the property to at least 80% of its
replacement cost. The DP-1 (Basic) provides only Actual Cash Value coverage
DP-2 - Answers Broad
DP-3 - Answers Special
DP-1 - Answers Basic
-provides only Actual Cash Value coverage
