Dwelling PolicyQuestion 122 of 215
Which statement about liability coverage under a standard ISO Dwelling Property policy is correct?
a.The basic DP policy provides no liability coverage; it must be added by endorsement
b.Personal liability is automatically included like in HO-3
c.Liability is included only when DP-3 is purchased
d.Liability follows the dwelling only when occupied by the named insured
Explanation
Unlike a homeowners policy, the Dwelling Property forms (DP-1, DP-2, DP-3) are property-only contracts and contain NO personal liability or medical payments coverage in the base form. Personal liability (Coverage L) and medical payments (Coverage M) must be added by endorsement, often the Personal Liability Supplement, to provide coverage similar to Section II of a homeowners policy.
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Related questions on this topic
- 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?
- Coverage E (Additional Living Expense) is available under which dwelling forms?
- 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?
- Under the ISO Dwelling Property forms, after how many consecutive days of vacancy will certain perils such as vandalism, glass breakage, and water damage be excluded?
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