West Virginia Property and Casualty Licensing Practice Exam

What does Coverage C protect?

1. Additional living expenses

2. Other structures

3. Personal property

4. Fair rental value

The correct answer is: Personal property

Coverage C in a typical homeowners insurance policy specifically refers to personal property. This coverage protects the insured's belongings, which can include furniture, electronics, clothing, and other personal items. It provides financial protection in the event of loss or damage due to various perils such as theft, fire, or vandalism. Understanding Coverage C is essential for homeowners as it helps them recognize what personal items are protected under their policy and the potential limit for reimbursement should a loss occur. Personal property coverage typically extends to items that are both inside and outside the home, but there are often specified limits for certain high-value items like jewelry or collectibles. Other options focus on different types of coverage within a homeowners policy. Additional living expenses cover costs incurred if the insured must live away from home due to a covered loss. Other structures protect buildings on the property not attached to the dwelling itself, like sheds or fences. Fair rental value pertains to lost rental income if a rental property is uninhabitable due to a covered loss. Each of these options addresses different aspects of a property insurance policy, but Coverage C specifically pertains to the protection of the insured's personal belongings.