South Carolina Personal Lines Practice Exam

Which coverage applies when property is damaged while being repaired?

1. Coverage C

2. Coverage D

3. Coverage E

4. General Exclusions

The correct answer is: Coverage D

When property is damaged while being repaired, Coverage D is applicable, as it typically pertains to loss of use and additional living expenses incurred when property cannot be occupied or utilized due to a covered loss. This means if the property is being repaired following damage from a covered event, and during the repair process further damage occurs, the costs associated with losing the use of that property can be covered under Coverage D. It's important to note that the context of damage occurring during repairs often aligns with the disruptions and additional costs that arise from such situations, making it a relevant component in personal lines insurance. Other coverages listed may not specifically address the nuances associated with damages incurred during repairs, thus reinforcing the significance of Coverage D in this scenario.