Arizona Adjuster Practice Exam

What Other Coverage is provided in all three unendorsed dwelling policy forms?

1. Temporary housing expenses

2. Reasonable repairs

3. Loss of use

4. Building ordinance coverage

The correct answer is: Reasonable repairs

The correct choice identifies that reasonable repairs are included in all three unendorsed dwelling policy forms. This coverage is essential because it provides policyholders with the ability to take immediate action to prevent further damage to their property. When a loss occurs, such as a fire or a storm, the insured is often required to make temporary repairs to safeguard the home from additional harm or loss— for instance, boarding up a broken window or covering a damaged roof. By including reasonable repairs, insurance policies facilitate the insured's responsibility to mitigate further damage, which can help preserve the overall integrity of the property and potentially reduce overall claims costs. This aspect of coverage emphasizes the policyholder's duty to act prudently following a loss event, ensuring that they maintain their property in a reasonable condition while awaiting insurance assessment and repairs. This feature exists across the standard forms of dwelling coverage without needing additional endorsements. The other options represent different types of coverage that may not be universally included across all unendorsed policies. For example, while temporary housing expenses and loss of use are often critical aspects of coverage, they can vary between different policy forms or might require endorsements to be added. Building ordinance coverage, which addresses increased costs associated with code upgrades during repairs, generally requires specific endorsements and