Coverage E (Additional Living Expense) is available under which dwelling forms?
a.DP-2 and DP-3 only
b.DP-1 and DP-2
c.DP-1 only
d.All three forms by default
Explanation
Additional Living Expense (Coverage E) is included as a standard coverage only on DP-2 and DP-3, recognizing that those broader forms typically insure owner-occupied dwellings where displacement creates extra costs. DP-1 provides Fair Rental Value (Coverage D) but does not include ALE unless added by endorsement.
Law Reference: ISO Dwelling Property forms — coverage availabilityThis topic, taught in full in the California Property & Casualty Broker-Agent guide. California Property & Casualty Broker-Agent Study Guide — 2026 Edition — PDF + EPUB, $24.99 · 14-day refund →
Practice all 531 questions free — no signup required.
Own the complete California Property & Casualty Broker-Agent guide — PDF + EPUB, $24.99 →
Related questions on this topic
- By default, on what valuation basis are losses to the dwelling settled under the DP-1 Basic Form?
- Which of the following risks is eligible to be insured under an ISO Dwelling Property policy?
- A dwelling is insured for $300,000 of Coverage A under a DP-3 with no endorsement modifying Coverage B. What is the standard amount of Coverage B (Other Structures) provided?
- Which statement about liability coverage under a standard ISO Dwelling Property policy is correct?
- To collect full replacement cost on a partial loss to the dwelling under DP-2 or DP-3, the insured must carry insurance equal to at least what percentage of the replacement value?
- Theft of personal property is treated how under an unendorsed ISO Dwelling Property policy?
Last reviewed: · editorial process
PrepPass team · Verified against California Property & Casualty Insurance License Exam · How we review