North Carolina Adjuster Practice Exam

The coverage limit for "Tree and Shrub Replacement" under a homeowners policy typically allows for replacement costs for damaged trees and shrubs due to specific perils, such as fire or lightning. A common coverage limit is set at $500 per tree. This coverage is designed to help homeowners recoup some of the costs associated with replacing lost landscaping that contributes to the overall value and aesthetics of the property. Understanding this coverage is crucial for homeowners, as landscaping can represent a significant investment. Additionally, while there may be total limits on the overall coverage for all trees and shrubs combined, recognizing the per-tree limit helps homeowners plan better for potential claims and understand the specific amounts they can expect to receive.