North Carolina Adjuster Practice Exam

A Dwelling Policy can provide coverage for any of the following without an endorsement, EXCEPT:

1. Contents within the dwelling

2. Permanent fixtures

3. Liability damages

4. Loss of rent

The correct answer is: Liability damages

The correct answer is liability damages because a standard Dwelling Policy typically does not include personal liability coverage. Liability coverage is designed to protect the policyholder from third-party claims for bodily injury or property damage that occur on the insured property. This type of protection generally requires a separate endorsement or a different type of policy entirely, such as a homeowners policy or a separate liability policy. In contrast, a Dwelling Policy can cover the contents within the dwelling, permanent fixtures, and loss of rent through its basic coverage provisions. The policy often covers personal property within the dwelling, like furniture and appliances, as well as enhancements to the property that are considered permanent fixtures. Additionally, loss of rent can be covered under a Dwelling Policy if the property is used for rental purposes, thus providing the homeowner with some financial protection against loss of rental income due to covered losses.