South Carolina Personal Lines Practice Exam

What is the coverage limit per occurrence for Tree/Shrub under HO-2, HO-3, HO-5, and HO-8?

1. $1,000

2. $2,000

3. $2,500

4. $3,000

The correct answer is: $2,000

The correct coverage limit per occurrence for trees, shrubs, and other plants under the HO-2, HO-3, HO-5, and HO-8 homeowner policies is indeed $2,500. This limit is significant as it directly applies to losses arising from certain peril events like fire, lightning, vandalism, and more, that damage these outdoor features. Homeowners should be aware that the coverage is typically subject to a maximum limit for all plants combined, reflecting the recognition that while landscaping is valuable, it doesn't carry the same replacement value as the dwelling itself. This coverage helps homeowners manage risks associated with property values that include both the house and its exterior elements. Understanding this limit is crucial for adequately assessing insurance needs and planning for potential claims related to landscaping. The other limit options provided do not align with standard coverage amounts specified in these policy forms, making the $2,500 limit the correct choice.