Arizona Adjuster Practice Exam

Under what condition would wall-to-wall carpeting be covered under Coverage A of a dwelling policy?

1. If it is laid over tiles

2. If it is permanently affixed over an unfinished floor

3. If it matches the wall color

4. If it is a recent installation

The correct answer is: If it is permanently affixed over an unfinished floor

Wall-to-wall carpeting is considered a permanent part of the structure when it is permanently affixed over an unfinished floor. This means that the carpeting is integrated into the home in a way that is intended to stay in place, which aligns with the criteria set forth under Coverage A of a dwelling policy. Coverage A generally applies to the dwelling itself, specifically the structure and its components that are fixed and integral to the property. When carpeting is permanently attached, it adds value to the home and is treated as part of the building rather than as personal property. This distinction is important because Coverage A is intended to cover the structure, while personal property, including removable flooring or furnishings, would typically fall under a different coverage section. Other conditions, such as matching wall color, recent installation, or being laid over tiles, do not validate coverage under Coverage A, as they do not indicate that the carpeting is permanently integrated into the structure of the dwelling. Only the aspect of being permanently affixed over an unfinished floor meets the necessary criteria for inclusion under Coverage A, making it the correct condition.