Question

When a homeowner's policy is issued with $150,000 coverage on a dwelling, what is the automatic amount of insurance on personal property?

a) $150,000
b) $0
c) $50,000
d) $100,000

Answer 1

The automatic amount of insurance on personal property when a homeowner's policy is issued with $150,000 coverage on a dwelling is $100,000.

Step-by-step explanation:

The automatic amount of insurance on personal property when a homeowner's policy is issued with $150,000 coverage on a dwelling is $100,000.

This means that the homeowner's policy includes coverage for personal property up to $100,000. Personal property includes items such as furniture, clothing, and appliances.

The automatic amount of insurance on personal property is usually a percentage (usually 50-70%) of the dwelling coverage. In this case, the personal property coverage is typically set at 50-70% of the $150,000 dwelling coverage, resulting in $100,000 of insurance on personal property.