Dwelling VS. Homeowners Policies Cheat Sheet for the Passing Your Property & Casualty Exam
- pandcpacademy
- Jan 14
- 3 min read
Updated: 4 days ago
Studying for the Property & Casualty Insurance (P&C) Exam can feel incredibly confusing! Memorizing all the details about Dwelling (DP) policies versus Homeowners (HO) policies is no small feat.
In this guide, we will compare the similarities and differences between these two policies. This way, you can better recall these important chapters and apply this knowledge on exam day! Plus, we’ll share the best tips to help you avoid common mistakes on exam questions!
Many students fail the P&C Exam because they mix up DP and HO. Our On-Demand prep course guides you through every policy type, every coverage, and gives you real exam-style questions so you’re fully prepared to pass. With over 10.5 hours of video lessons covering all chapters, you’ll gain the confidence you need to PASS!
Understanding Dwelling Policies (DP)
Dwelling policies are designed for residential buildings that don’t qualify for standard HO coverage. They are ideal for people who rent property to others, own seasonal vacation homes, or have mobile homes.
Key Features of DP Policies
Maximum of 4 families & 5 boarders in a building (Under 4 “units” considered DP)
Owner occupancy is NOT required
Mobile homes can be included, but must be permanently located
Liability is not included (Can be added via endorsement)
Theft coverage is optional
Personal property coverage is NOT included unless endorsed
V&MM (Vandalism & Malicious Mischief) coverage only until the building is vacant for 30 days
Incidental services: Max 2 workers allowed (e.g., beauty shops, music lessons, professional offices)
Coverages Under DP Policies
A – Building
B – Other Structures
C – Personal Property (Optional, must be endorsed)
D – Fair Rental Value
E – Loss of Use (payment is for the shortest time needed to repair/replace)
L – Personal Liability Supplement (Not automatically included, must be endorsed)
M – Medical Payments (Not automatically included, must be endorsed)
Exploring Homeowners Policies (HO)
Homeowners policies are standard for most families and come as package policies.
Key Features of HO Policies
Owner occupancy is required
Mobile homes NOT included (Needs separate policy)
Liability and theft coverage included
Personal property coverage included (Worldwide Coverage)
V&MM: Coverage until the building is vacant for 60 days
Home daycare: Up to 3 “other” children (Doesn't include the insured's own children)
Coverages Under HO Policies
A – Building
B – Other Structures
C – Personal Property (Included)
D – Loss of Use
E – Personal Liability (Included)
F – Medical Payments to Others (Included)
Types of Policies to Know
Basic (DP-1, HO-1)
Broad (DP-2, HO-2)
Special (DP-3, HO-3)
Open Peril / Special Peril (HO-3, HO-5)
Rent (HO-4)
Condos (HO-6)
Dated / Victorian Homes (HO-8)
Replacement & Valuation Notes
ACV (Actual Cash Value): DP-1, HO-1, HO-8
Replacement Cost: DP-2, HO-2, DP-3, HO-3, HO-5
Stated Value (Coverage C): HO-4, HO-6
Coverage Percentages for Homeowners Policies
Coverage B: 10% of Coverage A
Coverage C: 50% of Coverage A
Coverage D: 30% of Coverage A
Tip: Always remember these percentages — they come up frequently on exam questions!
Tips for Acing Your Property & Casualty Exam
This cheat sheet covers the most tested differences between DP and HO policies. However, the exam will test you with scenarios — not just lists.
✅ You’re one step away from mastering the Property & Casualty Exam! Start the next lesson now with over 10.5 hours of video lessons on every P&C chapter! You're halfway there!
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