South Carolina Personal Lines Practice Exam

What is the maximum coverage that DP-2 Broad and DP-3 Special policies provide for trees, plants, shrubs, or lawns?

1. 1% of Coverage A - Dwelling

2. 3% of Coverage A - Dwelling

3. 5% of Coverage A - Dwelling

4. 10% of Coverage A - Dwelling

The correct answer is: 5% of Coverage A - Dwelling

DP-2 Broad and DP-3 Special policies provide coverage for trees, plants, shrubs, and lawns under specific conditions, acknowledging the importance of landscaping in protecting the overall value of the property. The correct answer is that these policies offer a maximum limit of 5% of Coverage A - Dwelling for such items. This percentage reflects a balance between the overall insurance provided for the dwelling and the coverage necessary for landscaping, which can be significant to a homeowner's investment. While these policies focus primarily on the structure and contents of the home, they recognize the value of maintaining an aesthetically pleasing and well-kept exterior, hence the designated coverage for landscaping features. Other options reflect lower percentages and do not align with the accorded coverage limits established by the policies.