South Carolina Personal Lines Practice Exam

What is included in Coverage B of a DP policy?

1. Personal property

2. Separate structures at the same location

3. Additional living expenses

4. Standard deductibles

The correct answer is: Separate structures at the same location

Coverage B of a Dwelling Policy (DP policy) specifically pertains to "other structures" on the insured property. This coverage is designed to protect separate structures that are not attached to the main dwelling but are located on the same premises. Examples of these separate structures include garages, sheds, fences, and guest houses. This segment of coverage ensures that if these additional structures sustain damage due to perils outlined in the policy, such as fire, windstorm, or vandalism, the policyholder will receive compensation for repairs or rebuilding. The other options listed do not pertain to Coverage B. Personal property is typically covered under Coverage C, while additional living expenses fall under Coverage D. Standard deductibles apply across various coverages but are not a specific part of what Coverage B entails. Therefore, recognizing Coverage B's focus on separate structures helps in understanding the policy's framework and the protection it offers.