South Carolina Personal Lines Practice Exam

What is one of the additional coverages available in HO policies without additional premiums?

1. Fire damage coverage

2. Liability coverage

3. Deferment of rental payments

4. Debris removal

The correct answer is: Debris removal

In homeowners insurance policies, one of the additional coverages included without requiring any additional premiums is debris removal. This coverage is essential because it provides homeowners with financial assistance to remove debris after a covered loss, such as a fire or storm. This can encompass the costs associated with clearing away damaged materials from the premises, which is crucial for both safety and facilitating repairs. Including debris removal coverage in the policy without extra cost simplifies the claims process for homeowners, as they can focus on recovery rather than worrying about the expenses associated with cleanup. This type of coverage aligns with the fundamental objectives of homeowners insurance, which aims to protect property and assist policyholders in returning to their pre-loss condition efficiently. The other options presented, such as fire damage coverage and liability coverage, are often fundamental parts of the policy rather than additional benefits provided without a premium. Deferment of rental payments is not a typical coverage under a homeowners policy, as it does not directly relate to property protection or loss recovery.