Dwelling Policy Practice Test

When can broad theft coverage be added to a dwelling policy?

1. If the dwelling is rented to others

2. If the insured is an owner-occupant

3. If the dwelling is a seasonal home

4. If the insured has additional properties

The correct answer is: If the insured is an owner-occupant

Broad theft coverage can be added to a dwelling policy specifically when the insured is an owner-occupant. This means that the person who holds the policy is actually living in the dwelling as their primary residence. Broad theft coverage provides additional protection for personal property against theft, which is particularly beneficial for those who stay in the home consistently and have personal belongings that might be susceptible to theft. While other scenarios might exist for properties that are rented out, used seasonally, or involve multiple properties, they typically do not qualify for broad theft coverage under the standard terms of a dwelling policy. This specialized coverage is designed to meet the needs of individuals living in their home full-time, allowing them to secure their personal assets from theft within that context.