South Carolina Personal Lines Practice Exam

Under Coverage C of a HO-3 policy, what percentage of insurance is provided for personal property?

1. 30%

2. 50%

3. 70%

4. 100%

The correct answer is: 50%

Under Coverage C of a HO-3 policy, personal property is typically covered for a percentage of the dwelling's limit, which is usually set at 50%. This means that if the dwelling itself is insured for a certain amount, 50% of that amount is allocated to cover personal property. This coverage includes a wide range of personal belongings, such as furniture, electronics, clothing, and other items that are not permanently attached to the home. This percentage is a standard provision in many homeowners insurance policies, intended to provide adequate coverage for personal items in relation to the overall value of the dwelling. Options at different percentages either indicate a lower or higher proportion of coverage that does not align with standard HO-3 policy terms, making 50% the correct answer for personal property coverage in this context.