California Property & Casualty (CA-PC) · Chapter 3
California Property & Casualty: Personal Lines Property — Homeowners, Dwelling, Flood, Earthquake & the FAIR Plan
5 free practice questions from the 73 in this chapter of StudyWren Insurance. Pick an answer and check it to see the explanation. Part of the free California Property & Casualty practice exam.
Personal Lines Property — Homeowners, Dwelling, Flood, Earthquake & the FAIR PlanCA-PC-03-145
A dwelling policy (DP-3 special form) is written on a rental property. Which of the following statements is correct regarding Coverage C (personal property) under this policy?
Choose an answer first.
Correct
The answer is A: Coverage C covers the landlord's own personal property while it is located at the rental property.
Under the ISO dwelling forms, Coverage C covers personal property of the insured landlord, such as appliances or furniture supplied with the rental, while it is on the described location. Coverage C applies only when the declarations show a limit for it, so it is optional rather than automatic. It does not cover the tenant's belongings, which need the tenant's own renters policy, and it is not limited to property that is away from the rental.
Why not ?
Reviewed in our October 2026 California fact-check.
The answer is A: Coverage C covers the landlord's own personal property while it is located at the rental property.
Under the ISO dwelling forms, Coverage C covers personal property of the insured landlord, such as appliances or furniture supplied with the rental, while it is on the described location. Coverage C applies only when the declarations show a limit for it, so it is optional rather than automatic. It does not cover the tenant's belongings, which need the tenant's own renters policy, and it is not limited to property that is away from the rental.
Reviewed in our October 2026 California fact-check.
Personal Lines Property — Homeowners, Dwelling, Flood, Earthquake & the FAIR PlanCA-PC-03-160
A homeowner is purchasing a new primary residence located in a Special Flood Hazard Area (SFHA) in California. Their mortgage is being financed by a federally insured lender. What is the requirement regarding flood insurance for this homeowner?
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Correct
The answer is D: The homeowner must buy and maintain flood insurance through the NFIP or a qualifying private flood insurer.
Federal law requires federally regulated or insured lenders to require flood insurance on a loan secured by a building in a Special Flood Hazard Area of a participating community (42 U.S.C. §4012a). The borrower must buy and keep the coverage for the life of the loan, in an amount at least the lesser of the outstanding loan balance or the maximum coverage available under the NFIP, and the lender must accept private flood insurance that meets the federal requirements. So the coverage is mandatory rather than optional or merely recommended, the lender requires it but does not provide it free, and a prior flood claim is not the trigger.
Why not ?
Reviewed in our October 2026 California fact-check.
The answer is D: The homeowner must buy and maintain flood insurance through the NFIP or a qualifying private flood insurer.
Federal law requires federally regulated or insured lenders to require flood insurance on a loan secured by a building in a Special Flood Hazard Area of a participating community (42 U.S.C. §4012a). The borrower must buy and keep the coverage for the life of the loan, in an amount at least the lesser of the outstanding loan balance or the maximum coverage available under the NFIP, and the lender must accept private flood insurance that meets the federal requirements. So the coverage is mandatory rather than optional or merely recommended, the lender requires it but does not provide it free, and a prior flood claim is not the trigger.
Reviewed in our October 2026 California fact-check.
Personal Lines Property — Homeowners, Dwelling, Flood, Earthquake & the FAIR PlanCA-PC-03-176
A homeowner lives in a community that recently joined the National Flood Insurance Program (NFIP), so it is in the program's initial phase and FEMA has not yet completed its detailed flood risk study for the community. The homeowner wants to buy flood insurance. Which NFIP program applies to the community, and how does it compare with the other program?
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Correct
The answer is C: The Emergency Program, offering lower limits and a 30-day waiting period.
A community begins in the NFIP's Emergency Program, the initial phase of participation (44 CFR 59.1). Only limited amounts are available there: building coverage for a single-family home is capped at $35,000, against $250,000 in the Regular Program (44 CFR 61.6). The community moves to the Regular Program after FEMA completes its flood risk study. The 30-day waiting period for a new policy applies in both programs, with narrow exceptions such as coverage bought at a loan closing (44 CFR 61.11).
The answer is C: The Emergency Program, offering lower limits and a 30-day waiting period.
A community begins in the NFIP's Emergency Program, the initial phase of participation (44 CFR 59.1). Only limited amounts are available there: building coverage for a single-family home is capped at $35,000, against $250,000 in the Regular Program (44 CFR 61.6). The community moves to the Regular Program after FEMA completes its flood risk study. The 30-day waiting period for a new policy applies in both programs, with narrow exceptions such as coverage bought at a loan closing (44 CFR 61.11).
Personal Lines Property — Homeowners, Dwelling, Flood, Earthquake & the FAIR PlanCA-PC-03-190
Which of the following types of property is generally NOT eligible for coverage under the National Flood Insurance Program (NFIP)?
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Correct
The answer is A: An RV on a permanent foundation, located in a community that does not participate.
NFIP flood insurance is sold only for property in a community that participates in the program (an eligible community, 44 CFR 59.1). In a non-participating community no property qualifies, so the recreational vehicle there is ineligible. The standard flood policy also does not insure recreational vehicles at all, other than a travel trailer without wheels that sits on a permanent foundation and is regulated under the community's floodplain management ordinances. Single-family dwellings, commercial buildings with contents and detached garages on eligible residential lots can be insured in a participating community.
The answer is A: An RV on a permanent foundation, located in a community that does not participate.
NFIP flood insurance is sold only for property in a community that participates in the program (an eligible community, 44 CFR 59.1). In a non-participating community no property qualifies, so the recreational vehicle there is ineligible. The standard flood policy also does not insure recreational vehicles at all, other than a travel trailer without wheels that sits on a permanent foundation and is regulated under the community's floodplain management ordinances. Single-family dwellings, commercial buildings with contents and detached garages on eligible residential lots can be insured in a participating community.
Personal Lines Property — Homeowners, Dwelling, Flood, Earthquake & the FAIR PlanCA-PC-03-211
A California homeowner is interested in purchasing earthquake coverage through the California Earthquake Authority (CEA) and wants to keep the premium down by buying less coverage. They learn about the CEA's Homeowners Choice policy. Which of the following best describes a feature of that policy?
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Correct
The answer is C: It lets the owner buy dwelling coverage alone, declining the personal property and loss-of-use coverages.
The CEA offers two homeowners policies. The Standard Homeowners policy bundles dwelling, personal property and loss-of-use coverage under one deductible. The Homeowners Choice policy lets the owner set separate deductibles for the dwelling and personal property, and buy dwelling coverage alone, declining personal property and loss of use to lower the cost. Both policies use deductibles of 5% to 25%, the dwelling is always covered, and the CEA dwelling limit matches the homeowners policy's Coverage A. Neither policy is limited to homes that fail seismic codes. CEA policies are sold through participating insurers.
Why not ?
Reviewed in our October 2026 California fact-check.
The answer is C: It lets the owner buy dwelling coverage alone, declining the personal property and loss-of-use coverages.
The CEA offers two homeowners policies. The Standard Homeowners policy bundles dwelling, personal property and loss-of-use coverage under one deductible. The Homeowners Choice policy lets the owner set separate deductibles for the dwelling and personal property, and buy dwelling coverage alone, declining personal property and loss of use to lower the cost. Both policies use deductibles of 5% to 25%, the dwelling is always covered, and the CEA dwelling limit matches the homeowners policy's Coverage A. Neither policy is limited to homes that fail seismic codes. CEA policies are sold through participating insurers.
Reviewed in our October 2026 California fact-check.
