West Virginia Property and Casualty Licensing Practice Exam

Which type of policy allows for coverage of landlords?

1. HO6

2. HO4

3. HO3

4. DP2

The correct answer is: DP2

The choice of a DP2 policy is accurate for providing coverage to landlords because the DP2 form, known as the “Dwelling Fire Policy,” is specifically designed for rental properties. This policy covers the dwelling itself against named perils, meaning it protects the physical structure of rental properties and can be tailored to meet the needs of landlords. It offers coverage for physical damage to the property, which is essential for landlords who need to protect their investment against risks such as fire, windstorm, vandalism, and other specified hazards. In contrast, the other options serve different purposes. For example, the HO6 policy is primarily designed for condominium owners and covers personal property while also offering limited protection for the walls and fixtures, but it does not cater to landlords. The HO4 policy, also known as renters' insurance, is intended for tenants and provides coverage for personal belongings, but again, it does not apply to landlords. The HO3 policy is a homeowner's insurance policy that covers residential properties occupied by the owner, not rental properties. In summary, the DP2 policy is the appropriate choice as it directly addresses the needs of landlords by providing essential coverage for their rental properties.