California Independent Adjuster Practice Exam 2025 – Comprehensive Test Prep

The correct answer indicates that 10% of the Coverage C limit is applied to personal property usually situated elsewhere. This percentage is crucial for understanding how homeowners insurance policies operate regarding personal property coverage.

Coverage C, which typically pertains to personal property, sets certain limits on how much of your possessions are covered when they are outside of the insured premises. This is designed to provide some level of protection for personal belongings that might be temporarily located away from home—such as clothing, electronics, and other items.

The 10% limit reflects an industry standard that recognizes that while some personal property may be located away from the insured location, the primary coverage is still focused on property within the home. This limitation helps insurers manage risk while still offering a safeguard for policyholders.

Understanding this aspect of Coverage C is essential for adjustments in claims and can aid policyholders in making informed decisions regarding their insurance needs.