Dwelling Policy Practice Test

Which characteristic does NOT apply to the dwelling policy?

1. The dwelling must be owner-occupied

2. It provides coverage for additional structures

3. It covers personal property within the dwelling

4. It offers coverage for equipment used to maintain the premises

The correct answer is: The dwelling must be owner-occupied

The characteristic that does not apply to the dwelling policy is that the dwelling must be owner-occupied. In fact, dwelling policies can be used to insure properties that are not owner-occupied, such as rental homes or vacation properties. This flexibility allows landlords and real estate investors to secure coverage for their investment properties, regardless of whether they live there themselves or lease it to tenants. In contrast, dwelling policies do provide coverage for additional structures, personal property, and equipment used to maintain the premises. Coverage for additional structures refers to protecting buildings on the property that are not the main dwelling, such as garages or sheds. The inclusion of personal property coverage allows for protection of items within the dwelling, and coverage for maintenance equipment ensures that tools and machinery needed for property upkeep are also protected.