Arizona Adjuster Practice Exam

Which of the following coverages is included in all unendorsed dwelling policy forms?

1. Liability coverage

2. Fire department service charge

3. Contents coverage

4. Replacement cost coverage

The correct answer is: Fire department service charge

The correct answer is the fire department service charge, which is included in all unendorsed dwelling policy forms as a standard feature. This coverage is typically designed to reimburse the insured for charges incurred from a local fire department when they respond to a fire at the insured property, up to a specified limit. This aspect is particularly important for homeowners as it provides not just peace of mind but also financial protection against potential expenses that arise due to fire-related services. Liability coverage, contents coverage, and replacement cost coverage are not standard in all unendorsed dwelling policies and often require additional endorsements or separate policies to be included. Liability coverage generally needs to be added through an endorsement, contents coverage is typically found in renters insurance or must also be added to a dwelling policy, and replacement cost coverage may not be available unless specifically requested, depending on the type of policy. Thus, the inclusion of the fire department service charge distinguishes it as a unique feature of basic dwelling policies.