Louisiana P&C Adjuster Practice Exam

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What is the coverage amount available for business personal property under a typical homeowners policy without a Home Business endorsement?

$1,000
$2,500
$5,000
$10,000

The correct answer is: $2,500

In a typical homeowners policy without a Home Business endorsement, the coverage amount available for business personal property is limited to $2,500. This amount is specifically meant to address property that is used for business purposes, separate from personal property coverage. Homeowners policies generally focus on providing coverage for residential risks, and as such, they impose limits on business-related items. The $2,500 limit allows for some protection for personal property used in a business capacity while acknowledging that business activities often require more specialized insurance solutions. This limit reflects the understanding that homeowners' policies are not designed to fully cover business operations or extensive business property, hence the need for a separate business endorsement or policy in scenarios where business activities are deemed significant.