A dwelling policy should be used to insure which type of property?

A dwelling policy should be used to insure which type of property?

• A. Apartment owned by the insured and rented to others
• B. Duplex owned by the insured that is rented to others
• C. Single-family residence occupied by the owner
• D. Vacation home owned by the insured

Answer: (B)

A dwelling policy is specifically designed to provide coverage for residential properties that are not owner-occupied or have certain rental situations. In this context, the policy can effectively cover properties such as a duplex that the owner rents out to tenants. Since the duplex is a two-family structure and one unit is being utilized for rental purposes, it aligns with the insurability criteria of a dwelling policy, which includes structures rented to others. In addition, other options describe situations that fall outside the primary purpose of a dwelling policy. An apartment owned by the insured and rented to others is typically covered under a different policy type applicable to residential apartment buildings. A single-family residence occupied by the owner is generally covered under a homeowners policy, which offers broader coverage options for owner-occupied homes. Lastly, a vacation home owned by the insured may also require a specific type of endorsement or policy that reflects its use as a secondary residence, rather than a primary rental property. Therefore, the duplex scenario fits perfectly under the dwelling policy intended for rental properties.

A dwelling policy is specifically designed to provide coverage for residential properties that are not owner-occupied or have certain rental situations. In this context, the policy can effectively cover properties such as a duplex that the owner rents out to tenants. Since the duplex is a two-family structure and one unit is being utilized for rental purposes, it aligns with the insurability criteria of a dwelling policy, which includes structures rented to others.

In addition, other options describe situations that fall outside the primary purpose of a dwelling policy. An apartment owned by the insured and rented to others is typically covered under a different policy type applicable to residential apartment buildings. A single-family residence occupied by the owner is generally covered under a homeowners policy, which offers broader coverage options for owner-occupied homes. Lastly, a vacation home owned by the insured may also require a specific type of endorsement or policy that reflects its use as a secondary residence, rather than a primary rental property. Therefore, the duplex scenario fits perfectly under the dwelling policy intended for rental properties.