South Carolina Personal Lines Practice Exam

How much coverage is provided for credit card theft or unauthorized use under an HO policy?

1. Up to $250

2. Up to $500

3. Up to $750

4. Up to $1,000

The correct answer is: Up to $500

Under a homeowners (HO) policy, coverage for credit card theft or unauthorized use is typically limited to a specific amount to protect policyholders from financial loss due to such incidents. The correct answer indicates that the policy provides coverage up to $500. This amount reflects the standard limit set forth in many homeowners insurance policies, which ensures that individuals are financially protected against fraudulent charges made on their credit cards due to theft or unauthorized usage. The coverage is included to provide a safeguard for consumers, encouraging them to report any instances of theft promptly, as it helps limit their potential liability for unauthorized transactions. Recognizing this amount is crucial for homeowners as they evaluate their insurance policies and consider the implications of credit card fraud. Familiarizing oneself with the coverage limits allows homeowners to take appropriate action in safeguarding their financial well-being in the event of unauthorized use of their credit cards.