Which of the following is described as indirect loss coverage in the DP policy forms?

Prepare for the North Carolina Property and Casualty State Exam. Use flashcards and multiple choice questions with hints and explanations. Boost your exam readiness!

In the context of the Dwelling Policy (DP) forms, indirect loss coverage refers primarily to loss of use or additional living expenses that a policyholder may incur as a result of an insured loss to the property. Coverage D specifically addresses the loss of rental income or additional living expenses when the property is uninhabitable due to a covered loss. This is considered indirect loss because it's not a direct physical damage to the property itself but rather the financial impact that results from that damage, such as having to pay for temporary accommodation or loss of rental income.

The other coverages in the DP policy focus on direct loss. For instance, Coverage A deals with the dwelling itself, Coverage B pertains to other structures on the property, and Coverage C covers personal property contained within the dwelling. These coverages are intended to compensate for the direct physical loss or damage to the insured property or structures, rather than the subsequent financial implications arising from such damage.

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