Dwelling PolicyQuestion 82 of 158
A homeowner uses a DP-3 to cover a vacation cabin she personally occupies four months each year. When a covered fire makes the cabin uninhabitable during her stay, which DP coverage reimburses her extra hotel and meal costs?
a.Coverage D — Fair Rental Value
b.Coverage E — Additional Living Expense
c.Coverage C — Personal Property
d.Coverage A — Dwelling
Explanation
Coverage E, Additional Living Expense, reimburses the named insured for the extra costs incurred while displaced from a dwelling they themselves occupy, including hotel, meals, and similar living expenses. Coverage E is standard on DP-2 and DP-3 but not on DP-1. Coverage D pays for lost rental income (a landlord scenario), not the owner's personal living costs. Coverages A and C apply to the building and personal property.
Law Reference: ISO Dwelling forms — Coverage E ALEPractice all 158 questions free — no signup required.
Related questions on this topic
- Which of the following is one of the BROAD perils added by the DP-2 Broad Form on top of the basic DP-1 perils?
- Under a standard DP-3 without additional endorsements, how is a covered loss to the named insured's Coverage C personal property settled?
- A landlord who rents out a single-family house on a DP-3 asks whether theft losses to the dwelling are covered. Which statement is MOST accurate?
- A California landlord on a DP-3 asks whether a future earthquake that damages the rental house will be covered. Which response is correct?
- 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?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against California Personal Lines Insurance License Exam · How we review