What is the maximum number of roomers or boarders for properties insured under the dwelling policy?

The correct answer reflects the maximum allowable number of roomers or boarders for properties insured under a dwelling policy, which is five. This is significant because dwelling policies are designed to provide insurance for residential properties that may have limited occupancy and are not primarily used for commercial purposes.

When insuring properties with a dwelling policy, underwriters account for occupancy to avoid excessive risk. Allowing up to five roomers or boarders strikes a balance between accommodating more residents and managing loss exposure. If the number of roomers or boarders exceeds this limit, it could lead to complications in coverage, as the insurance would not adequately assess and price the increased risk that comes with having more than five residents.

Understanding this limit is crucial for both property owners and agents, as it influences coverage options and ensures compliance with policy terms. Knowledge of these stipulations helps in making informed decisions about the types of coverage needed based on the property's usage.