South Carolina Personal Lines Practice Exam

What type of coverage is provided for Removal Coverage under an HO policy?

1. Property retained for 60 days

2. Property lost during a fire

3. Covered property for 30 days from peril

4. Property included in the liability limit

The correct answer is: Covered property for 30 days from peril

Removal Coverage under a Homeowners (HO) policy is designed to protect the insured's personal property when it is moved from the insured location to avoid damage from a covered peril. This coverage typically extends for a specified duration after the property is removed from its original location. In this case, the correct answer specifies a 30-day timeframe during which the removed property is covered. This means that if the insured takes their belongings away from the home to protect them from hazards like fire or severe weather, those items remain covered for 30 days. This aspect of the policy is particularly important because it ensures that individuals have a safety net while they work to safeguard their property during a dangerous situation. The other options do not accurately reflect the nature of Removal Coverage. For example, coverage isn't specifically limited to property retained for a particular period after it has been moved but rather focuses on providing ongoing protection. Similarly, while property lost during a fire seems pertinent, Removal Coverage is not limited to this scenario exclusively; it applies to various perils. Lastly, the concept of property being included in the liability limit does not pertain to Removal Coverage, as this coverage is about protecting personal property rather than addressing liability concerns.