How many basic coverages are provided in a dwelling policy?

The correct answer is that a dwelling policy provides five basic coverages. A dwelling policy is specifically designed to protect properties that are not owner-occupied and typically covers risks associated with the physical structure of a home.

The five basic coverages included in a dwelling policy typically encompass:

1. Coverage A – Dwelling,

2. Coverage B – Other Structures,

3. Coverage C – Personal Property,

4. Coverage D – Fair Rental Value,

5. Coverage E – Additional Living Expenses.

Each of these coverages serves a distinct purpose, ensuring that various aspects of the property and rental income are protected against loss or damage. This comprehensive structure is particularly beneficial for property owners who rent out their dwellings or for those who own properties that are not their primary residences, ensuring broad and adequate coverage for various needs.