Dwelling Policy (DP)Question 249 of 474
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.Coverage A – Dwelling
b.Coverage D – Fair Rental Value
c.Coverage C – Personal Property
d.Coverage B – Other Structures
Explanation
Fair Rental Value (Coverage D) reimburses the owner for the rental income lost while a covered peril makes the rented dwelling unfit to live in, limited to the time reasonably required to repair. Coverage A insures the structure, Coverage B other structures, and Coverage C personal property. Fair rental value protects the landlord's income rather than the physical property itself.
This topic, taught in full in the Personal Lines Insurance Producer guide. Personal Lines Insurance Producer — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
Practice all 474 questions free — no signup required.
Own the complete Personal Lines Insurance Producer guide — PDF + EPUB, $19.99 →
Related questions on this topic
- 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?
- A landlord who rents out a single-family house and needs to insure the building and lost rental income would most appropriately use a:
- Which Dwelling form insures the dwelling on an open-perils basis, providing the broadest property coverage?
- A major difference between a Dwelling policy and a Homeowners policy is that the Dwelling policy:
- Compared with a homeowners policy, a dwelling policy is best described as:
- Which risk is eligible for coverage under a standard dwelling program?
Last reviewed: · editorial process
PrepPass team · Verified against California Personal Lines Insurance License Exam · How we review