South Carolina Personal Lines Practice Exam

What is the coverage limit for tree and shrub damage under a HO-4 (Tenant) and HO-6 (Condo) policy?

1. 300 per occurrence

2. 500 per tree or shrub, with a maximum of 10% of Coverage C

3. 1000 for any tree or shrub

4. 2500 for any tree or shrub, with no maximum

The correct answer is: 500 per tree or shrub, with a maximum of 10% of Coverage C

In a HO-4 (Tenant) and HO-6 (Condo) policy, coverage for damage to trees and shrubs is typically set at a limit of $500 per tree or shrub, with a maximum of 10% of Coverage C limit of liability. This means that if damage occurs to these items, each individual tree or shrub is covered up to $500, and the total amount for all such claims cannot exceed 10% of the Coverage C limit, which pertains to personal property. This structure encourages policyholders to maintain and protect their landscaping while offering a reasonable limit on the insurance company's exposure. Given that other choices present different figures or criteria, they do not align with the specifics of HO-4 and HO-6 coverage, thus making the second option the correct one.