Free Dwelling Policy Concepts Practice Questions
New Mexico Property exam (series 18-28) — 56 practice questions.
Subtopics: Fair rental value, Additional living expense, Other structures, Dwelling policy, Vacancy, Eligibility, DP-1 basic, DP-3 special, Coverage A, Coverage B, Coverage C, Theft not covered, No liability in base, Inflation guard, Dwelling under construction, Extended coverage perils, DP-2 broad form, Broad theft endorsement, Dwelling replacement cost settlement, Personal Liability Supplement medical payments, Vandalism and malicious mischief, Recovered property, Personal property loss settlement, Improvements and betterments, Personal property off-premises, Trees shrubs and plants, Internal explosion, Property not covered, Functional Replacement Cost endorsement, DP-2 burglar damage, DP-3 vs DP-2, DP Coverage E, Fair rental value calc, DP civil authority, DP money excluded, DP Coverage A materials, DP general exclusion, DP water backup, DP freezing, DP windstorm interior, DP smoke peril, DP-3 theft not covered, DP reasonable repairs, DP ordinance or law, DP-3 exclusions, DP Coverage C named perils, DP deductible, DP vacancy - glass, DP mortgagee rights, DP Coverage B, DP-2 replacement cost, DP volcanic eruption, Dwelling forms, Dwelling coverages
Read the Dwelling Policy Concepts study guide
Sample questions & answers
1. Under the ISO dwelling policy (DP-3), the coverage that pays a landlord the lost rent when a covered loss makes the rented part of the dwelling unfit for use is:
Coverage D - Fair Rental Value
Coverage D pays the fair rental value of the part of the described location rented to others when a covered loss makes it unfit for normal use.
2. Under the ISO DP-3, which coverage pays the necessary increase in living costs when a covered loss makes the insured's own residence unfit to live in?
Coverage E - Additional Living Expense
Coverage E covers any necessary increase in living expenses so the household can maintain its normal standard of living.
3. Under the ISO DP-3, the other structures coverage allows the insured to use up to what percentage of the Coverage A limit for other structures?
10%
The DP-3 lets the insured use up to 10% of the Coverage A limit for loss to other structures; this is additional insurance.
4. A New Mexico dwelling (DP) policy differs from a homeowners policy mainly because it:
It is often used for rentals and lacks built-in liability coverage
The dwelling policy is designed for dwellings such as rentals and does not automatically include the broad homeowners liability and contents package.
Practice: Dwelling Policy Concepts
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
