South Carolina Personal Lines Practice Exam

Is personal property automatically included with a Dwelling Policy?

1. Yes, always

2. No, it must be owner occupied

3. Yes, for tenants only

4. It depends on the location

The correct answer is: No, it must be owner occupied

In a Dwelling Policy, personal property is not automatically included; it must be owner-occupied to qualify for coverage. This type of policy primarily focuses on providing coverage for the dwelling itself and any attached structures. For personal property coverage, the policyholder typically needs to meet specific criteria related to occupancy. If a property is deemed owner-occupied, the policy can be extended to include personal property owned by the insured, such as furniture and appliances. However, if the dwelling is not owner-occupied, like in cases where the property is rented out or used solely for investment purposes, personal property coverage may not apply. This distinction helps ensure that the policy is tailored specifically to the needs of the insured's situation, emphasizing the importance of occupancy type in determining coverage eligibility.