North Carolina Adjuster Practice Exam

What is the coverage limit for Addison's personal property under his property insurance?

1. $100,000

2. $136,000

3. $200,000

4. $340,000

The correct answer is: $136,000

The coverage limit for personal property is typically determined by the specifics of the insurance policy that Addison has purchased. In this scenario, selecting the amount of $136,000 suggests that this is the total coverage limit stated within Addison's specific policy for personal property. Policies often provide a specified limit that reflects the value of an insured person's belongings, which can be either set through a standard policy amount or determined based on an evaluation of the property owner’s actual personal property, including furniture, electronics, and other personal items. In many cases, an adjuster or insurance agent would set this figure based on the individual’s needs and inventory of possessions. Choosing an amount that is not commonly found as a neat round number, such as $136,000, could also indicate it has been tailored to Addison's specific circumstances, possibly taking into account the value of the contents after conducting a home inventory. This approach helps ensure that the insured amount meets the actual replacement cost or market value of the personal property involved. It's essential for policyholders to review their policy limits regularly to ensure adequate coverage, especially as the value of personal property can fluctuate over time based on market conditions and personal circumstances. In Addison's case, it appears the $136,000 limit has