Alabama Insurance Adjuster Practice Exam

A large corporation can insure a small hunting cabin against property damage with which type of policy?

1. Dwelling policy

2. Business owner's policy

3. Comprehensive coverage

4. Homeowner's policy

The correct answer is: Dwelling policy

A dwelling policy is specifically designed to provide coverage for residential properties that may not be occupied full-time or are not the insured's primary residence. This type of policy is often suitable for properties like a hunting cabin, as it can cover risks such as fire, wind, theft, and certain types of water damage. Business owner's policies are typically tailored for businesses that own and operate properties, which might not apply to the context of insuring a hunting cabin intended for personal use. Comprehensive coverage is a broader term that can apply to different types of insurance but isn’t a distinct policy for property like a dwelling policy is. Homeowner's policies are generally intended for primary residences rather than secondary or investment properties such as a hunting cabin, making them less appropriate in this case. Thus, the dwelling policy is the most suitable choice for insuring a small hunting cabin against property damage, as it encompasses the specific needs of such non-primary residences.