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?
Explanation
The Dwelling Policy has no liability in its base form, so the proper solution is to add the Personal Liability Supplement endorsement (which adds Coverage L liability and Coverage M medical payments and can schedule additional locations) or to write a separate landlord liability policy. Coverage A is for building damage only and cannot be repurposed for lawsuits. Coverage D pays the landlord's lost rents, not tenant injury claims. Ordinance or Law adds building code upgrade costs, not liability.
Law Reference: ISO DP 04 01 — Personal Liability SupplementThis 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 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?
- 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?
- 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:
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