South Carolina Personal Lines Practice Exam

What does Coverage C in a dwelling policy include?

1. Personal property

2. Liability coverage

3. Medical payments

4. Building structure

The correct answer is: Personal property

Coverage C in a dwelling policy is designed specifically to provide protection for personal property. This coverage typically includes items such as furniture, electronics, clothing, and other personal belongings that are not considered part of the building structure itself. The intention of Coverage C is to ensure that a policyholder can recover the value of their personal belongings should they be damaged or destroyed by a covered peril, such as fire or theft. In contrast, liability coverage and medical payments, while essential components of many insurance policies, fall under different coverage categories entirely. Liability coverage (often associated with Coverage E) protects the insured from claims arising due to injuries or damage to others, while medical payments (often associated with Coverage F) help cover medical costs for injuries occurring on the insured property, regardless of fault. Additionally, building structure coverage pertains to the actual physical dwelling itself and would generally be included under Coverage A. Therefore, the focus of Coverage C specifically on personal property clearly makes it the correct answer in this context.