South Carolina Personal Lines Practice Exam

What does the Broad Theft Endorsement in a DP policy protect?

1. Real estate losses

2. Personal property from theft and attempted theft

3. Bodily injury claims

4. Natural disaster losses

The correct answer is: Personal property from theft and attempted theft

The Broad Theft Endorsement in a Dwelling Policy (DP policy) specifically extends coverage to protect personal property from theft and attempted theft. This endorsement is essential for homeowners or renters who want additional security against losses attributed to theft, which is not automatically covered under standard DP policies. By including this endorsement, the policyholder ensures that their personal belongings, such as furniture, electronics, clothing, and other valuables, are safeguarded against theft-related incidents, providing peace of mind and financial protection. The emphasis on personal property rather than real estate aligns with the nature of theft-related claims, which pertain to possessions rather than the structure itself. The other options address aspects not covered by the Broad Theft Endorsement. For example, real estate losses pertain to the physical structure or property grounds, while bodily injury claims relate to liability coverage rather than theft. Natural disaster losses refer to events like hurricanes or floods, which require separate endorsements or coverage types. This clarity helps in understanding the specific role and importance of the Broad Theft Endorsement within the broader context of a DP policy.