Arizona Adjuster Practice Exam

What factor determines the inclusion of wall-to-wall carpeting in property coverage?

1. Permanency of the installation

2. Cost of the carpet

3. Style and color of the carpet

4. Type of underlay

The correct answer is: Permanency of the installation

The inclusion of wall-to-wall carpeting in property coverage primarily depends on the factor of the permanency of the installation. When evaluating property coverage, the insurance typically looks at whether certain items are considered fixtures or personal property. Wall-to-wall carpets that are permanently installed are generally viewed as part of the building structure rather than as personal property. This distinction is crucial because coverage for the structure usually includes permanently attached fixtures, while personal property coverage may not extend to items that are easily removable or not affixed to the property. In contrast, factors such as the cost of the carpet, its style and color, or the type of underlay are secondary considerations that do not influence its classification in terms of insurance coverage. While these elements may impact value or aesthetic appeal, they do not determine whether the carpeting is considered part of the insured property under a standard policy. The key factor remains its permanency and the degree to which it is integrated into the structure.