Homeowners Policy (HO)Question 304 of 474
The 50% relationship between Coverage C and Coverage A is best described as:
a.a default the insured may raise or lower
b.a percentage that applies only to tenant forms
c.a fixed limit that no endorsement can change
d.a cap the insurer sets after the loss occurs
Explanation
The 50% figure is the amount built into the form, and a household with heavy furnishings can buy the limit up for extra premium while a sparsely furnished home can have it reduced by endorsement. The answer calling it unchangeable misreads a standard starting point as a hard cap, and the limit is set when the policy is written, not after a loss is reported.
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Related questions on this topic
- Which of these is insured under Coverage B rather than under Coverage A?
- A homeowner rents a detached backyard cottage to a stranger who runs a salon there. Under Coverage B the cottage is:
- A dwelling is written with Coverage A of $240,000. On an unendorsed Homeowners form, the Coverage C limit is:
- Personal property usually kept at an insured's other residence, such as a vacation cabin, is limited to:
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