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Insurance · Homeowners Policies

In a standard homeowners policy, what is the typical structure of the main property coverages (Coverages A through D)?

Reviewed by Jordan Morley, Editorial Lead at 247SimpleTests. Written by the 247SimpleTests Editorial Team from the official source material cited on every question.

Correct answer

Coverage A — dwelling; Coverage B — other structures; Coverage C — personal property; Coverage D — loss of use (additional living expenses)

  1. A Coverage A — dwelling; Coverage B — other structures; Coverage C — personal property; Coverage D — loss of use (additional living expenses)
  2. B They cover only liability
  3. C They all cover the same thing
  4. D They cover only the land

Why this is the answer

A standard homeowners policy organizes property coverage into sections: Coverage A insures the dwelling (the house structure); Coverage B insures other structures on the premises not attached to the house (such as a detached garage, shed, or fence); Coverage C insures personal property (the insured's belongings); and Coverage D provides loss of use, paying additional living expenses if the home becomes uninhabitable due to a covered loss. Coverages E and F handle liability and medical payments. Knowing the A–D property coverage structure of the homeowners policy is fundamental content frequently tested on the property insurance exam.
Source: NAIC Model Outline, Homeowners Coverages A-D

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About this topic: Homeowners Policies

Homeowners questions cover the HO forms (HO-2 through HO-8), the coverage sections (dwelling, other structures, personal property, loss of use, liability, medical payments), the perils, exclusions and endorsements. This is one of 21 Property Insurance questions on homeowners policies, each with a full explanation on a single study page.

New to this exam? Our Insurance exam guide explains the format, scoring, and how to prepare.

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