South Carolina Personal Lines Practice Exam

Which type of personal property is usually covered under Coverage C in a HO policy?

1. Real estate properties owned

2. Vehicles and watercraft

3. Contents and personal effects

4. Liability for injury to guests

The correct answer is: Contents and personal effects

Coverage C in a Homeowners (HO) policy is specifically designed to protect personal property owned by the policyholder. This includes the contents of the home, such as furniture, clothing, appliances, and personal effects. The emphasis of Coverage C is on what an individual personally owns and uses, which is fundamental for ensuring that personal belongings are safeguarded against loss or damage due to perils specified in the policy, such as fire, theft, or vandalism. For example, if a policyholder experiences a burglary where valuable personal belongings are stolen, Coverage C would provide financial protection for those items. This coverage not only applies to items inside the home itself but can extend to some personal property that is off the insured premises as well, thus reflecting the broad nature of personal property covered under this section of the policy. While real estate properties and land would fall under Coverage A, which deals with the dwelling itself, vehicles and watercraft are typically excluded from standard homeowners insurance and would require separate policies. Liability coverage, addressing injury to guests, is associated with Coverage E and is separate from the coverage that pertains to personal property.