Georgia Property & Casualty Practice Exam

What type of coverage can be added to a homeowners policy for personal property while traveling?

1. Personal property replacement cost coverage

2. Personal liability coverage

3. Scheduled personal property endorsement

4. Extended dwelling coverage

The correct answer is: Scheduled personal property endorsement

The correct choice pertains to the scheduled personal property endorsement, which is specifically designed to provide coverage for valuable items that may be at risk while traveling. This endorsement allows homeowners to list and insure specific valuables—such as jewelry, art, or collectibles—against loss or damage, even when they are away from home. Standard homeowners insurance may have limits on coverage for personal property taken outside the home; therefore, the scheduled personal property endorsement enhances protection for items that have significant value and could be vulnerable during travel. This added coverage ensures that if these listed items are lost or damaged while traveling, the homeowner will receive the necessary financial support for their loss. In contrast, personal property replacement cost coverage generally refers to coverage that pays for the replacement of personal property at its current value, which may not specifically apply to items lost while traveling. Personal liability coverage deals with legal liabilities and is not focused on personal property loss. Extended dwelling coverage relates to the structure itself rather than personal property. Thus, the scheduled personal property endorsement is the most appropriate choice for enhancing coverage on personal belongings while on the move.