South Carolina Personal Lines Practice Exam

Which of the following is NOT one of the property coverages of a DP-1 policy?

1. Dwelling

2. Other Structures

3. Personal Property

4. Liability Coverage

The correct answer is: Liability Coverage

A DP-1 policy, commonly known as a Dwelling Policy, is a type of insurance that provides coverage for specific property-related risks associated with a dwelling or rental property. It generally includes three primary coverages: Dwelling, Other Structures, and Personal Property. The Dwelling coverage protects the physical structure of the home from covered risks. Other Structures coverage applies to structures that are not attached to the main dwelling, such as garages or sheds. Personal Property coverage offers protection for the owner's personal belongings within the house. Liability Coverage, however, is not included in a DP-1 policy. Liability coverage is designed to protect against claims from injuries or damage to others for which the policyholder may be held legally responsible. This type of coverage is typically found in a more comprehensive homeowners insurance policy or a separate liability policy but is not part of the basic DP-1 dwelling policy. Therefore, identifying liability coverage as not part of the DP-1 policy provisions is accurate and demonstrates an understanding of the structure of the policy.