South Carolina Personal Lines Practice Exam

If an insured covered under a Mobile Homeowners Policy moves their mobile home to protect it from a covered peril, how much will the policy pay?

1. 250 dollars

2. 300 dollars

3. 500 dollars

4. 1000 dollars

The correct answer is: 500 dollars

When an insured moves their mobile home to protect it from a covered peril, the Mobile Homeowners Policy typically includes a provision that provides coverage for the expenses incurred in such a situation. This provision generally outlines specific limits on the amount that the policy will pay for the expense of moving the mobile home. In this context, the policy stipulates that the amount payable for moving the mobile home due to the need to protect it from a covered peril is set at a specific limit, which is $500. This amount reflects the insurer's commitment to provide some financial support to help mitigate losses associated with potential damages while also balancing risk and cost considerations. The other options represent different amounts that are lower or higher than the stipulated limit provided in a Mobile Homeowners Policy for moving expenses. Therefore, $500 accurately reflects the coverage provided under typical policy terms for the scenario of moving a mobile home to avoid damage from a covered peril.