Which of the following correctly distinguishes the Dwelling Policy from the Homeowners Policy?
Explanation
A key distinction is that the DP does not require owner-occupancy and is therefore the standard policy for rental and seasonal dwellings, while a Homeowners policy requires the named insured to occupy the dwelling as a residence. The DP does NOT include personal liability automatically — that is the homeowners policy. Both DP and HO are limited to one-to-four-family residences, and both exclude earthquake.
Law Reference: ISO Dwelling Property eligibility — owner-occupancy not requiredThis 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 →
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Related questions on this topic
- 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 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 California landlord on a DP-3 asks whether a future earthquake that damages the rental house will be covered. Which response is correct?
- 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?
- A landlord who rents out a single-family house and needs to insure the building and lost rental income would most appropriately use a:
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