Dwelling and Homeowners Policies

Correct

The answer is D: Up to 10% of Coverage A, or $20,000, can be used for other structures such as a detached garage.

Under the ISO dwelling forms, the Other Coverages provision for other structures lets the insured use up to 10% of the Coverage A limit for loss to structures described in Coverage B, such as a detached garage or shed. With Coverage A at $200,000, that is $20,000. No endorsement is needed for it. Coverage B insures the structures themselves, not personal property stored in them (Coverage C does that), and it excludes structures used in whole or in part for business, with narrow exceptions, so business use does not qualify a structure.

Reviewed in our October 2026 Pennsylvania fact-check.

Correct

The answer is D: Coverage D - Fair Rental Value

Coverage D (Fair Rental Value) reimburses the owner for the fair rental value, less expenses that do not continue, of a rented part of the dwelling that a covered loss makes unfit for use. Coverage E (Additional Living Expense) pays the insured's own necessary extra living costs when they cannot live in their home, not lost rent. Coverage A insures the building itself and Coverage C the personal property; neither replaces rental income.

Reviewed in our October 2026 Pennsylvania fact-check.

Correct

The answer is B: Vandalism and malicious mischief coverage is excluded.

Under the ISO DP-3 dwelling form, loss by vandalism or malicious mischief, or by theft, is not covered if the dwelling has been vacant for more than 60 consecutive days immediately before the loss, and the glass breakage coverage does not apply either. A dwelling being constructed is not considered vacant. Vacancy does not cancel the policy, does not suspend all coverage and does not entitle the insured to a refund; cancellation and nonrenewal follow their own notice rules.

Reviewed in our October 2026 Pennsylvania fact-check.

Correct

The answer is B: To amend the policy so that it conforms to Pennsylvania law.

A state special provisions endorsement amends the standard ISO policy language so that it conforms to the state's statutes and regulations; the Pennsylvania endorsement does this for Pennsylvania. It adds no perils or coverages: earthquake coverage needs its own endorsement, inflation protection comes from an inflation guard endorsement, and on a dwelling form theft coverage for personal property is added separately.

Reviewed in our October 2026 Pennsylvania fact-check.

Correct

The answer is A: HO-3

The HO-3 (Special Form) provides open peril (all-risk) coverage for the dwelling (Coverage A) and other structures (Coverage B), while personal property (Coverage C) remains on a named peril basis. The HO-2 is named peril for all coverages, the HO-5 is open peril for both dwelling and personal property, and the HO-8 is a modified form for older homes with functional replacement cost and named peril coverage.

Reviewed in our October 2026 Pennsylvania fact-check.