South Carolina Personal Lines Practice Exam

What is the maximum coverage limit for loss of personal property under a standard HO policy?

1. 5,000

2. 10,000

3. 25,000

4. 30,000

The correct answer is: 10,000

The maximum coverage limit for loss of personal property under a standard homeowners (HO) policy is typically established at $100,000, but the answer provided indicates a misunderstanding of the question. Standard HO policies generally offer coverage types that might vary based on the specific form of the policy (e.g., HO-1, HO-2, HO-3). Personal property coverage is often a percentage of the dwelling coverage, which can lead to different limits depending on the overall value of the home insured. Usually, personal property is covered against a range of named perils, and the standard policy will also have coverage for theft or loss of personal belongings. If you meant to refer to either the contents or specific limits for certain categories of personal property, it’s crucial to reference the specific policy form to ascertain the maximum limits. For many standard homeowners policies, limits can be modified by endorsements or optional upgrades, thus affecting the amount of actual coverage available. Given these facts, it is advisable to refer to the specific terms and conditions of the individual policy being assessed to determine the exact coverage limit for personal property loss, as this can differ widely based on the particular provisions of the policy in question.