Dwelling Policy (DP)Question 247 of 474
A landlord who rents out a single-family house and needs to insure the building and lost rental income would most appropriately use a:
a.Personal auto policy
b.Dwelling policy (DP form)
c.Condominium HO-6 policy
d.Homeowners HO-4 policy
Explanation
A Dwelling policy (DP form) is designed for residential property, including non-owner-occupied rentals, and can cover the building and fair rental value. It does not automatically include personal liability, which can be added by endorsement. HO-4 covers a tenant's contents, HO-6 covers a condo unit owner, and neither fits a landlord who needs building and rental-income coverage.
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Related questions on this topic
- 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?
- Which Dwelling form insures the dwelling on an open-perils basis, providing the broadest property coverage?
- Under a Dwelling policy covering a rented home, the coverage that reimburses the owner for lost rent while the home is being repaired after a covered loss is:
- A major difference between a Dwelling policy and a Homeowners policy is that the Dwelling policy:
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