Dwelling PolicyQuestion 127 of 215
A landlord's rental house is damaged by a covered fire and is unrentable for four months while it is repaired. Which coverage pays the landlord for the rent that would have been collected?
a.Coverage B — Other Structures
b.Coverage C — Personal Property
c.Coverage D — Fair Rental Value
d.Coverage E — Additional Living Expense
Explanation
Coverage D, Fair Rental Value, reimburses the named insured for the loss of rental income from that portion of the dwelling rented or held for rent, less expenses that do not continue, while the dwelling is unfit to live in due to a covered peril. Coverage E (ALE) applies when the named insured is displaced from a unit they themselves occupy, which is not the case here.
Law Reference: ISO Dwelling Property forms — Coverage DPractice all 215 questions free — no signup required.
Related questions on this topic
- 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?
- An investor owns a duplex rented to two tenant families and wants the broadest property coverage on the building itself. Which dwelling form is the best fit?
- Compared to DP-1, the DP-2 Broad Form adds which group of perils to the dwelling coverage?
- Which of the following losses to a dwelling would be excluded under all three ISO Dwelling Property forms?
- Which endorsement would an agent recommend so an insured can schedule a $25,000 diamond ring and a $10,000 fine art collection with broader coverage and no theft sublimit?
Last reviewed: · editorial process
Sen Lin, PrepPass Founder · Verified against California Property & Casualty Insurance License Exam · How we review