Dwelling Policy (DP)Question 296 of 531
A homeowner moves out of her house, rents it to a family, and asks to keep her homeowners policy on it. Her producer must move the risk to a dwelling policy because:
a.a homeowners policy may not insure a one-family house
b.rented dwellings can be insured only at market value
c.the homeowners program excludes fire at a rented home
d.homeowners forms require the insured to live there
Explanation
Homeowners forms are eligible only while the named insured occupies the dwelling as a residence, so once the owner moves out and rents the house to others the risk belongs in the dwelling program. The notion that a homeowners policy cannot insure a one-family house is backwards, since that is the risk it was built for. Renting does not limit recovery to market value either.
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Related questions on this topic
- Which Dwelling policy form provides the broadest coverage by insuring the dwelling on an open-perils basis?
- Under a Dwelling policy, coverage for the physical house structure is provided under:
- A landlord who rents out a house wants to insure the loss of rent if the home becomes uninhabitable after a covered fire. This need is met by:
- Which of these buildings could NOT be insured under a dwelling policy?
- A builder needs coverage on a house he is putting up, including the lumber and fixtures stored on the site. The usual answer is:
- A dwelling policy is written on a house being built for the owner who will live in it. The Coverage A limit should be set at:
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