North Carolina Adjuster Practice Exam 2025 - Free Adjuster Practice Questions and Study Guide

The correct answer regarding the coverage limit for Addison's personal property under his property insurance is based on the standard definitions and limits typically outlined in property insurance policies. In many cases, the coverage for personal property is determined by the specific policy terms and the insured's declarations page.

Personal property coverage generally includes items such as furniture, clothing, appliances, and similar belongings. The coverage limit represents the maximum amount the insurer will pay in the event of a covered loss, like theft or damage.

A limit of $136,000 as the chosen answer could stem from factors such as an appraisal of the personal property, the specifics of Addison's insurance policy, or endorsements that may adjust standard coverage. It's crucial to understand that individual insurance policies may also incorporate various endorsements or limits that influence the total coverage available for personal property.

Thus, $136,000 would be justified if it was based on an assessment of Addison's personal property value or if it aligns with the agreed policy limit displayed in the insurance documentation. This rationale allows for a clear understanding of how an insurance policy may provide tailored coverage based on individual needs.