Georgia Adjuster Practice Test

What is the maximum number of boarders allowed on the premises for coverage under a standardized Dwelling policy?

1. 3

2. 4

3. 5

4. 6

The correct answer is: 5

In a standardized Dwelling policy, coverage is typically designed for properties that serve as residential homes rather than commercial establishments. The policy includes specific limitations on the number of boarders or renters that can reside on the premises while still ensuring coverage under the terms of the policy. Generally, the limit on the number of boarders is set at five. This means that any residential property with five or fewer boarders qualifies for the specified coverage under the Dwelling policy, while properties with more than that may need a different type of insurance to cover the additional risks associated with having more occupants. This limitation allows the insurance provider to manage risk more effectively, as having too many tenants can complicate loss assessments and increase the likelihood of claims. Therefore, the maximum number of boarders for coverage under this type of policy is accurately identified as five.