South Carolina Personal Lines Practice Exam

What is the coverage amount provided under the Fire Department Service Charge Endorsement?

1. 250

2. 500

3. 1000

4. 1500

The correct answer is: 500

The Fire Department Service Charge Endorsement provides a specified amount of coverage to reimburse policyholders for charges incurred in calling a fire department to protect their property from a fire. The standard coverage amount typically offered under this endorsement is $500. This coverage is separate from the property insurance limits and is designed to address the costs associated with fire department response. This endorsement is particularly useful in scenarios where a fire department may charge fees for their services, such as when they are called to extinguish a fire, even if it is not on the insured’s property. Having this coverage ensures that the policyholder is not financially burdened by these charges in the event of a fire incident, thus adding an extra layer of protection beyond typical property insurance coverage.