West Virginia Property and Casualty Licensing Practice Exam

What type of coverage is found in section I of the homeowner form?

1. Personal property coverage

2. Liability coverage

3. Additional living expenses

4. Dwelling coverage

The correct answer is: Personal property coverage

In the homeowner form, Section I is dedicated to providing coverage for the insured's property. This includes personal property coverage, which protects the belongings within the home, such as furniture, clothing, and appliances, against various risks like theft, fire, or damage. Understanding personal property coverage is essential, as it ensures that the policyholder can recover the value of their personal items in the event of a covered loss. This type of coverage is always listed under Section I, alongside dwelling coverage, which protects the structure of the home itself, but does not address personal contents specifically. While liability coverage and additional living expenses are also important components of homeowner insurance, they are classified under different sections of the policy. Liability coverage falls under Section II, which provides protection against legal claims due to injury or property damage caused to others. Additional living expenses, which help cover the costs of temporary housing and living expenses while the home is being repaired, is also addressed in Section I but is generally considered part of the coverage package, rather than a specific "type" of coverage like personal property or dwelling.