South Carolina Personal Lines Practice Exam

What is the payout maximum per tree/shrub under the Tree, Shrub, and Other Plant Coverage Endorsement in specific HO forms?

1. $300

2. $500

3. $750

4. $1,000

The correct answer is: $500

The payout maximum per tree, shrub, or other plant under the Tree, Shrub, and Other Plant Coverage Endorsement in specific Homeowner's (HO) forms is indeed set at $500. This endorsement typically offers coverage for damage to trees, shrubs, and other plants caused by specific perils like fire, lightning, explosion, vandalism, or theft, among others. The $500 limit is established to provide a reasonable amount of coverage while balancing affordability for policyholders. This limit encourages homeowners to maintain their landscaping but also recognizes that high-end landscaping can be expensive. This endorsement is particularly relevant for those living in areas where landscaping is a significant part of property value or curb appeal. While other answer choices represent higher payout options, they do not align with the standard coverage limits established by the insurance policy that governs these endorsements. Thus, the accurate maximum payout specified in most policies under this coverage is indeed $500.