Louisiana P&C Adjuster Practice Exam

What type of property can a Dwelling Policy provide coverage for without an endorsement?

1. Business personal property

2. Residential property

3. Automobiles

4. Commercial buildings

The correct answer is: Residential property

A Dwelling Policy is specifically designed to provide coverage for residential properties. These policies can be used to insure homes, including single-family dwellings, duplexes, and apartments that are rented out. The primary purpose of a Dwelling Policy is to cover the structure and its contents in situations involving risks such as fire, theft, and certain types of water damage, among others. The other options do not fall under the standard coverage that a Dwelling Policy provides. Business personal property, for instance, usually requires a commercial property policy or specific endorsements to cover business-related items. Automobiles are typically insured under auto insurance policies, and commercial buildings are generally subject to different insurance products designed for business properties, further emphasizing the residential focus of the Dwelling Policy. Thus, the correct answer reflects the intended use and coverage scope of a Dwelling Policy.