Dwelling Policy Practice Test

What type of damages are typically excluded under a special form dwelling policy?

1. Damage caused by natural disasters

2. Damage resulting from domestic animals

3. Damage from fire and smoke

4. Damage caused by theft

The correct answer is: Damage resulting from domestic animals

A special form dwelling policy, known as DP-3, offers broad coverage for various perils, but it does have certain exclusions. Damage resulting from domestic animals typically falls under those exclusions because it often relates to liability aspects or specific hazards associated with pets, such as injuries or property damage caused by the animals themselves. Unlike damage caused by fires and smoke, which is generally covered in such policies barring specific exclusions, or theft, which can also be covered depending on the circumstances, damage from natural disasters may be excluded on certain policies but could also have limited coverage options. Thus, domestic animal-related damage is more consistently excluded due to the inherent risks it poses, which insurers aim to manage by limiting their payouts in those scenarios.