Louisiana P&C Adjuster Practice Exam

Which two additional coverages are included within Coverage A limit in a DP-3 policy?

1. Personal liability and loss of use

2. Debris removal and reasonable repairs

3. Contents replacement and additional living expenses

4. Structural improvements and increased costs of construction

The correct answer is: Debris removal and reasonable repairs

In a DP-3 policy, which is a type of dwelling fire insurance, Coverage A is primarily focused on providing protection for the dwelling itself. Among the additional coverages that are included within the Coverage A limit, you have debris removal and reasonable repairs, which are essential to mitigating damages to the property. Debris removal refers to the costs associated with clearing debris from the damaged property after a covered event, which is crucial for ensuring that the site is safe and ready for repairs. Reasonable repairs cover the expenses incurred when taking actions to prevent further damage to the dwelling after an insured loss has occurred. This is important because it helps preserve the integrity of the structure while the claims process is underway. Understanding the specifics of what is included under Coverage A helps in navigating insurance claims effectively and ensuring that homeowners are aware of the extent of their coverage when addressing losses.