Mississippi Property & Casualty Practice Exam

To be covered under a dwelling policy, how many boarders can a dwelling have at maximum?

1. Three

2. Four

3. Five

4. Six

The correct answer is: Five

In a dwelling policy, the coverage for rental properties includes specific guidelines about the number of boarders. The correct answer of five boarders reflects the maximum limit set by most standard dwelling policies. This provision is significant because it delineates the boundary of coverage, ensuring that a property does not exceed the threshold for what is typically insurable under a dwelling policy without needing to transition to a different type of policy, such as a commercial property insurance policy. Understanding this limit helps property owners make informed decisions about the rental arrangements they can make without jeopardizing their insurance coverage. Exceeding this number could pose a risk, as the property may not be adequately covered for damages or losses if the dwelling is classified as a larger rental property than what is allowed under the dwelling policy guidelines. This balance of risk and coverage is crucial for effective property management.