Arizona Adjuster Practice Exam

What does Coverage C in a dwelling policy cover?

1. Only the structure of the home

2. Personal property of the named insured and resident family members

3. Commercial property owned by the insured

4. Loss of rental income

The correct answer is: Personal property of the named insured and resident family members

Coverage C in a dwelling policy specifically pertains to personal property owned by the named insured and resident family members. This coverage is designed to protect the personal belongings within the insured dwelling, such as furniture, clothing, electronics, and other personal items typically found in a home. Personal property coverage is an essential component of a dwelling policy because it safeguards against risks like theft, damage, or destruction due to events such as fire, wind, or vandalism. This ensures that, in the event of a covered loss, the policyholder can receive compensation to replace or repair their personal possessions. In contrast, other options refer to different aspects of insurance coverage. The structure of the home itself falls under Coverage A, which provides protection for the dwelling itself. Coverage related to commercial property or loss of rental income would not be applicable in this context, as they are governed by different types of policies or specific endorsements to standard property policies. Understanding the specific coverages within policies is crucial for both policyholders and adjusters when evaluating claims and coverage needs.