South Carolina Personal Lines Practice Exam

Under which endorsement would you have coverage for jewelry, furs, and stones at a limit of 1500?

1. Condo Unit Owners Endorsement

2. Water Backup Endorsement

3. Special sub-limits in DP policies

4. Broad Theft Endorsement

The correct answer is: Special sub-limits in DP policies

The correct choice is based on the specifics of coverage limits for personal property in a dwelling policy. Under standard dwelling policies (DP), there are specific sub-limits established for certain categories of personal property, including jewelry, furs, and stones. A limit of $1,500 is typical for these items unless otherwise endorsed or increased through additional coverage options. This sub-limit is crucial to know because it impacts how much compensation a policyholder would receive if these items were lost or stolen. In contrast, the other options listed do not typically address this particular concern or do not offer the same kind of sub-limit for such personal property. For instance, the Condo Unit Owners Endorsement is designed specifically for condominium owners, covering property related to that dwelling type. The Water Backup Endorsement focuses solely on coverage related to damage caused by water backing up, which does not include personal property like jewelry. Lastly, the Broad Theft Endorsement provides coverage for theft but often has different limits and may not align precisely with the $1,500 figure specified in the question. Therefore, understanding the relationship between coverage types and specific limits is integral to identifying the correct endorsement.