State Farm Insurance License Practice Exam

What is Coverage A in a homeowners policy?

1. Personal Liability

2. Medical Payments

3. Dwelling

4. Other Structures

The correct answer is: Dwelling

Coverage A in a homeowners policy specifically refers to the Dwelling coverage. This type of coverage protects the physical structure of your home, including all attached components, such as garages and decks, against perils like fire, theft, or vandalism. It is a fundamental part of a homeowners insurance policy, as it provides the necessary financial protection to repair or rebuild the home in the event of a covered loss. Understanding the nuances of homeowners insurance coverage is crucial for potential policyholders. For example, Coverage A would not extend to personal belongings or liability claims, which are covered under different sections of the policy. Medical Payments, another vital aspect of homeowners insurance, addresses medical expenses for injuries that occur on your property but does not relate to the structure itself. Other Structures coverage pertains to buildings that are not attached to the main dwelling, such as sheds or fences, further differentiating it from Coverage A.