South Carolina Personal Lines Practice Exam

What peril is NOT covered under the basic DP policy?

1. Windstorm

2. Fire

3. Smoke

4. Tornado

The correct answer is: Tornado

The basic Dwelling Policy (DP) provides coverage for specific perils outlined in the policy. Among these perils are fire, lightning, and internal explosion, along with some others like windstorm and smoke damage. However, certain perils are not explicitly covered under this basic form. Tornado damage is typically not explicitly named as a covered peril within the basic DP policy. Instead, tornadoes are generally categorized under windstorm coverage. This is an important distinction because while windstorm damage might be covered, the specific damages caused by a tornado as a distinct peril often require an endorsement or a broader dwelling type like the DP-2 or DP-3, which are more comprehensive in their coverage. Since tornadoes are inherently linked to windstorms, but the basic DP policy does not specifically state "tornado" as a covered peril, it highlights the importance of understanding how coverage is defined in the context of the types of policies available. Always reviewing the specific terms of coverage and endorsements is vital in understanding the extent and limits of policy protections.