South Carolina Personal Lines Practice Exam

Which of the following is NOT an additional coverage in a typical dwelling policy?

1. Improvements, alterations, and additions

2. Medical payments

3. Fire department service charge

4. Property removed

The correct answer is: Medical payments

In a typical dwelling policy, additional coverages enhance the standard coverage provided to policyholders, but they have specific purposes. One of the key elements of a dwelling policy is that it primarily covers property and does not typically extend to liability or medical payments. Medical payments are designed to cover expenses arising from bodily injury to others, regardless of whether the insured is at fault. This type of coverage usually falls under general liability policies rather than dwelling policies. Therefore, this makes medical payments not an additional coverage within the framework of a standard dwelling policy. In contrast, improvements, alterations, and additions offer protection for enhancements made to the dwelling, the fire department service charge provides coverage for fees incurred when the fire department responds to a fire at a covered location, and property removed covers losses that occur while property is being temporarily moved to protect it from damage. All of these are specially designated additional coverages within a dwelling policy, distinguishing them from medical payments, which serve a different purpose altogether.