South Carolina Personal Lines Practice Exam

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Study for the South Carolina Personal Lines Exam. Use flashcards and multiple choice questions, each with hints and explanations. Prepare for your exam today!

Practice this question and more.

What percentage of Coverage A does Coverage D Fair Rental Value typically cover?

20%
30%
No percentage coverage
It varies

The correct answer is: It varies

Coverage D, also known as Fair Rental Value, typically provides coverage based on a percentage of Coverage A, which is the dwelling coverage amount. This coverage is designed to compensate the policyholder for lost rental income due to a covered peril that makes the property uninhabitable. The percentage that Coverage D covers can indeed vary by the specific terms of the policy and the insurance provider. While some policies might have set percentages, others may provide flexibility allowing for adjustments based on individual circumstances or the amount of Coverage A specified in the policy. This variability ensures that the coverage is tailored to the policyholder's needs and aligns with the rental income that might have been lost during the period of damage or repair.