Under a Dwelling Policy, which dwelling type is not eligible?

Under a Dwelling Policy, which dwelling type is not eligible?

• A. A rental apartment in a commercial building
• B. A 1-6 family dwelling
• C. A two-family dwelling owned by a corporation
• D. A mobile home

Answer: (B)

The key idea here is that a Dwelling Policy covers only one- to four-family dwellings. Buildings with more than four family units aren’t eligible. A six-unit dwelling goes beyond that limit, so it isn’t eligible under this policy. The other scenarios fit the rule: a single rental apartment in a commercial building is still a dwelling unit and falls within the cap of four units; a two-family dwelling, even if owned by a corporation, remains within the four-unit limit; and a mobile home can be insured under a Dwelling Policy when properly classified and, if needed, with the appropriate endorsement.

The key idea here is that a Dwelling Policy covers only one- to four-family dwellings. Buildings with more than four family units aren’t eligible.

A six-unit dwelling goes beyond that limit, so it isn’t eligible under this policy. The other scenarios fit the rule: a single rental apartment in a commercial building is still a dwelling unit and falls within the cap of four units; a two-family dwelling, even if owned by a corporation, remains within the four-unit limit; and a mobile home can be insured under a Dwelling Policy when properly classified and, if needed, with the appropriate endorsement.