Question

The coverage C limit is typically what percentage of the Coverage A amount under a homeowners policy?

(A) 25%
(B) 50%
(C) 75%
(D) 100%

Answer 1

The coverage C limit is typically 75% of the Coverage A amount under a homeowners policy.

Step-by-step explanation:

The coverage C limit is typically 75% of the Coverage A amount under a homeowners policy.

In an insurance policy, the Coverage A amount represents the dwelling coverage or the maximum amount the insurance company will pay to rebuild or repair the home if it is damaged or destroyed by a covered peril.

1. Let's assume the Coverage A amount is $100,000.
2. If the coverage C limit is 75% of the Coverage A amount, it would be 75% of $100,000, which is $75,000.

Therefore, the coverage C limit is typically 75% of the Coverage A amount under a homeowners policy.