South Carolina Personal Lines Practice Exam

What are the main coverages included in a standard Homeowners policy?

1. Coverage A - Dwelling and Coverage B - Liability

2. Coverage A - Dwelling, Coverage B - Other Structures, Coverage C - Personal Property, Coverage D - Loss of Use

3. Coverage A - Liability, Coverage B - Medical Payments

4. Coverage A - Dwelling, Coverage B - Personal Property

The correct answer is: Coverage A - Dwelling, Coverage B - Other Structures, Coverage C - Personal Property, Coverage D - Loss of Use

A standard Homeowners policy includes several key coverages that together provide comprehensive protection for property owners. The correct answer identifies Coverage A, B, C, and D as essential components. Coverage A typically refers to the dwelling itself, providing protection against risks like fire, wind damage, or vandalism to the structure where the policyholder resides. Coverage B addresses other structures on the property that are not attached to the main dwelling, such as sheds, fences, or detached garages. Coverage C covers personal property, which includes belongings inside the home such as furniture, electronics, and clothing, ensuring that these items are also protected against similar perils. Finally, Coverage D pertains to Loss of Use, which helps cover additional living expenses in the event that the home becomes uninhabitable due to a covered loss, allowing residents to maintain their standard of living while repairs are made. This comprehensive coverage is designed to provide a well-rounded safety net for homeowners against multiple potential risks, making it a key aspect of financial protection in homeownership.