Louisiana P&C Adjuster Practice Exam

What is a common endorsement added to a Dwelling Policy?

1. Liability

2. Dwelling Under Construction

3. Theft

4. Landlord Insurance

The correct answer is: Dwelling Under Construction

A common endorsement added to a Dwelling Policy is the Dwelling Under Construction endorsement. This endorsement is designed to provide coverage for homes that are in the process of being built. It addresses the unique risks associated with a property that is not yet finished, ensuring that any damages that occur during construction are covered. This endorsement is important because standard dwelling policies might not provide adequate coverage if the property is not completed and occupied. The Dwelling Under Construction endorsement extends coverage to include perils that could cause a loss before the home is fully built, such as fire, vandalism, and certain types of damage, allowing builders and homeowners peace of mind during the construction phase. In contrast, other options such as Liability would typically not be a standalone endorsement specifically for Dwelling Policies, although liability coverage can be part of broader homeowners insurance. Theft is a coverage that may be added but is not as universally relevant to all types of dwelling situations as the construction endorsement. Landlord Insurance is another separate category that applies specifically to rental properties rather than the construction phase.