South Carolina Personal Lines Practice Exam

What are the three types of forms/coverages available in dwelling policies?

1. Basic, Broad, Comprehensive

2. Basic, Broad, Special

3. Standard, Basic, Special

4. Basic, Comprehensive, Special

The correct answer is: Basic, Broad, Special

The answer reflects the three specific types of coverage forms that are typically included in dwelling policies. These are Basic, Broad, and Special. The Basic form provides coverage for specific named risks, often referred to as perils, and is the most limited option among the three. It includes coverage for a set list of hazards, providing a basic level of protection for structures on the property. The Broad form expands coverage compared to the Basic form, adding protection for additional risks. This type of coverage is designed to offer more comprehensive protection while still being categorized as a dwelling policy rather than a homeowner's policy. The Special form offers the most extensive coverage of all three types. It typically provides coverage on an open-perils basis, meaning it covers all risks unless they are specifically excluded from the policy. This form is ideal for property owners looking for thorough protection for their dwellings. Understanding these three forms is essential for comprehending the range of coverage options available under dwelling policies and how they cater to varying needs. The distinction between them helps policyholders choose the level of protection that aligns best with their individual situations and preferences.