South Carolina Personal Lines Practice Exam

What does Coverage C in an HO policy cover?

1. Other structures

2. Personal property

3. Loss of use

4. Dwelling and attached structures

The correct answer is: Personal property

Coverage C in a Homeowners (HO) policy specifically addresses personal property. This coverage includes a wide array of personal items that you own, such as furniture, clothing, appliances, and electronics, anywhere they may be located, both on and off the premises. The intention of this coverage is to protect the insured against theft, damage, or loss of their personal belongings due to covered hazards, providing financial support for the replacement or repair of these items. The significance of Coverage C lies in its role in ensuring that policyholders are safeguarded from unforeseen events that can lead to financial loss regarding their personal possessions. Understanding its scope is crucial for homeowners to ensure they have adequate levels of insurance to cover the value of their property.