Dwelling Policy Practice Test

Which of the following is NOT included in the broad and special form dwelling policy?

1. Loss of use coverage

2. Theft of personal property

3. Coverage for fire damage

4. Caps on personal liability

The correct answer is: Theft of personal property

The choice indicating that theft of personal property is not included in the broad and special form dwelling policy is accurate. In dwelling policies, theft is not automatically covered under either the broad or special forms unless an additional endorsement is purchased. These policies primarily focus on coverage for the dwelling itself and associated hazards, such as fire, windstorm, and vandalism. Loss of use coverage is part of these policies, providing benefits if the insured property becomes uninhabitable due to a covered loss. Coverage for fire damage is indeed included, as fire is one of the main perils protected against in these dwelling policies. Caps on personal liability, while not typically part of the dwelling policy itself, deal with different aspects of homeowner's insurance and liability coverage, which are distinctly separate. Hence, theft of personal property stands out as the coverage not inherently included in the broad and special forms of dwelling policies.