Georgia Property & Casualty Practice Exam

All of the following statements regarding the dwelling policy are correct EXCEPT:

1. There are six dwelling policy forms.

2. An unendorsed dwelling policy provides property coverage only; it does not include liability coverage.

3. The dwelling policy can cover a residence for less cost than a homeowners policy.

4. The dwelling policy covers personal property as well as the dwelling itself.

The correct answer is: There are six dwelling policy forms.

The statement that there are six dwelling policy forms is not accurate, making it the exception among the statements. In reality, there are three primary forms of dwelling policies: DP-1 (Basic), DP-2 (Broad), and DP-3 (Special). Each of these forms serves different coverage needs and levels, but the total does not reach six. The other statements are correct as they align with how dwelling policies are structured. An unendorsed dwelling policy indeed only covers property, providing no liability coverage, which distinguishes it from homeowners policies that typically include both property and liability coverage. Additionally, dwelling policies may offer a more cost-effective solution for insuring rental properties or homes not occupied by the owner, when compared to homeowners policies. Finally, dwelling policies can also cover personal property under certain conditions, supplementing the coverage for the dwelling itself.