Pennsylvania Property & Casualty: Dwelling and Homeowners Policies

Correct

The answer is B: Vandalism and malicious mischief coverage is excluded.

Under the ISO DP-3 dwelling form, loss by vandalism or malicious mischief, or by theft, is not covered if the dwelling has been vacant for more than 60 consecutive days immediately before the loss, and the glass breakage coverage does not apply either. A dwelling being constructed is not considered vacant. Vacancy does not cancel the policy, does not suspend all coverage and does not entitle the insured to a refund; cancellation and nonrenewal follow their own notice rules.

Reviewed in our October 2026 Pennsylvania fact-check.

Correct

The answer is B: The insurer may deny the claim if the delay prejudices their ability to investigate the loss.

The duties after loss condition in dwelling policies requires the insured to give prompt notice of a loss. Pennsylvania courts do not let an insurer deny a claim for late notice unless the delay actually prejudiced it, for example by hindering its investigation of the loss, and the current ISO dwelling forms are written the same way. So late notice does not defeat a claim automatically, the insurer is not required to pay when the delay did prejudice it, and prompt notice is a contract condition, not a recommendation.

Reviewed in our October 2026 Pennsylvania fact-check.

Correct

The answer is C: Home Day Care endorsement (HO 04 97)

The Home Day Care Coverage endorsement (HO 04 97) is the ISO form built for a paid home day care. The homeowners definition of business excepts home day care only when it is unpaid, a mutual exchange of services, or for a relative, so paid day care for others is excluded without it. Business Pursuits (HO 24 71) excludes a business the insured owns or controls. Personal Injury (HO 24 82) adds offenses such as libel and false arrest, and a child's bodily injury is not one. Permitted Incidental Occupancies (HO 04 42) covers a described office, studio or small private school on the premises, not a day care.

Reviewed in our October 2026 Pennsylvania fact-check.

Correct

The answer is C: $4,300, as the policy reimburses actual additional living expenses up to the Coverage D limit.

Coverage D (Loss of Use) in an HO-3 pays the increase in living expenses, such as hotel costs and extra meal costs, while a covered loss makes the home unfit to live in. The limit is 20% of $400,000, or $80,000, and the $4,300 claim ($3,500 + $800) is far below it, so the insurer pays the actual expenses. Meal costs are covered to the extent they exceed normal costs, and the limit is a ceiling, not an amount paid regardless of expenses.

Reviewed in our October 2026 Pennsylvania fact-check.

Correct

The answer is C: The HO-3 excludes liability arising out of a business, and the endorsement does not cover a business the insured owns.

The HO-3 excludes liability arising out of a business. HO 24 71 Business Pursuits restores coverage for an insured's business activities such as work in a described occupation as an employee, but it excludes a business the insured owns or controls. The homeowner owns the consulting business, so the claim is outside both the HO-3 and the endorsement. Personal liability coverage does apply to injuries at the insured's home, and the endorsement does not depend on licensing or on customer status. An owned home business needs a Permitted Incidental Occupancies endorsement, a home business endorsement or a commercial policy.

Reviewed in our October 2026 Pennsylvania fact-check.