South Carolina Personal Lines Practice Exam

What coverage under a dwelling policy protects contents damaged by fire?

1. Coverage A - Dwelling

2. Coverage B - Other Structures

3. Coverage C - Personal Property

4. Coverage D - Fair Rental Value

The correct answer is: Coverage C - Personal Property

Coverage C - Personal Property is designed to protect the insured's belongings within the dwelling when damage occurs due to perils such as fire. This coverage typically encompasses items like furniture, clothing, and other personal items owned by the policyholder, safeguarding them against losses occurring in or around the insured premises. In a dwelling policy, Coverage A pertains to the structural components of the home itself, such as the walls and roof, but it does not cover personal belongings. Coverage B is focused on other structures on the property, such as detached garages or sheds, rather than the contents inside the dwelling. Coverage D addresses situations where the rental value of the property is affected, typically in cases where the dwelling becomes uninhabitable due to damage, but it does not extend to protecting personal property from damage due to fire. Thus, Coverage C is correctly identified as the appropriate option for protecting contents damaged by fire under a dwelling policy.