North Carolina Adjuster Practice Exam

How much coverage does a homeowners policy provide for a damaged fence?

1. Up to $1,500

2. Up to $2,000

3. Covered entirely under the home policy

4. Depends on the type of fence

The correct answer is: Covered entirely under the home policy

A homeowners policy generally provides coverage for structures that are not attached to the dwelling, including fences, under the "other structures" coverage section. This coverage is typically a percentage of the total dwelling coverage, often around 10%. In the case of a damaged fence, if it is listed as an "other structure," the policy would indeed cover the damage entirely so long as it falls within the policy limits and conditions. Homeowners insurance often covers the actual cash value for repairs or replacement unless stipulated otherwise in the policy, which is important to keep in mind. While there can be specific limits or exceptions passed by individual policies, the blanket assertion that fences are covered entirely under the homeowners policy holds as accurate when considering standard provisions. The amounts stipulated in other choices pertain to specific limits that may apply only in certain scenarios or with particular policy types, but generally, the homeowners policy frames the coverage quite broadly for such structures.