South Carolina Personal Lines Practice Exam

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Study for the South Carolina Personal Lines Exam. Use flashcards and multiple choice questions, each with hints and explanations. Prepare for your exam today!

Practice this question and more.

HO-2 provides personal property coverage on a _____ peril basis.

Specific
Broad
Open
Basic

The correct answer is: Broad

The correct answer is broad. The HO-2 policy, or Broad Form Homeowners Insurance, offers personal property coverage on a broad peril basis. This means that it covers a wider array of risks compared to basic forms, specifically including named perils such as theft, vandalism, and certain types of water damage, among others. Broad peril coverage ensures that policyholders are protected against various damages or losses that occur due to specific risks explicitly listed in the policy. This is in contrast to basic coverage, which typically includes fewer named perils and offers less extensive protection. The term "open peril," though not applicable here, refers to coverage that protects against all risks except those specifically excluded in the policy, further highlighting the differentiation of broad coverage. By understanding that HO-2 provides broad coverage, policyholders can appreciate the extent of their protection, making it a popular option for those seeking a balance between coverage and premium costs.