North Carolina Adjuster Practice Exam

What homeowners coverage might indemnify Clark for the loss of his meat due to a power outage?

1. Loss of Use coverage

2. Personal Liability coverage

3. Personal Property coverage

4. Additional Living Expenses

The correct answer is: Personal Property coverage

The correct answer pertains to Personal Property coverage, which is designed to cover losses related to the personal belongings of the insured, including food and other perishables, in situations like a power outage. In many homeowners' insurance policies, this coverage can help replace items that spoil due to a lack of refrigeration, which includes meat that may have perished during the power interruption. This type of coverage typically provides financial support for the replacement of lost or damaged items, ensuring that the homeowner can recover from the incident without incurring significant out-of-pocket expenses. The key aspect is that the Personal Property coverage comprehensive scope includes various personal assets within the home, making it applicable for scenarios such as spoiled food. The other choices do not relate directly to the loss of the meat in the same way. Loss of Use coverage pertains to additional costs incurred when a home is uninhabitable. Personal Liability coverage protects against claims for bodily injury or property damage to others. Additional Living Expenses generally cover costs for temporary housing when the home is uninhabitable, but it does not address personal property loss directly.