Dwelling policies and flood insurance fill the gaps a homeowners policy leaves. Both appear on P&C exams.
Dwelling policies
- Who buys them: owners of vacation, seasonal, vacant, rental and older homes that are not a primary residence (NC DOI, Dwelling Policies).
- DP-1 Basic: named perils of fire, lightning and internal explosion; windstorm, hail, explosion, riot, aircraft, vehicles, smoke and volcanic eruption need extended coverage. Settles at actual cash value unless replacement cost is bought (NC DOI).
- DP-2 Broad: adds further named perils, such as freezing, and typically settles building claims at replacement cost (NC DOI).
- DP-3 Special: dwelling and other structures on open perils, personal property on named perils. Money and securities are not covered property, and theft of a landlord's contents needs an endorsement (ISO DP 00 03).
Flood insurance (NFIP)
- The Dwelling Form insures a one-to-four family residence, a single condominium unit and contents, against direct physical loss by flood only, with no loss of use or additional living expense. Increased Cost of Compliance pays up to $30,000 (44 CFR 61 App. A(1)).
- The General Property Form covers buildings of five or more families and non-residential buildings and their contents, and excludes business interruption (44 CFR 61 App. A(2)).
- A flood is a general and temporary condition of partial or complete inundation of two or more acres of normally dry land or two or more properties (44 CFR 61 App. A(2), Art. II).
Practice property and casualty insurance questions for your state, with explanations and timed mock exams.