State Farm Fire Independent Policy Practice Exam

What coverage applies to personal property at a new location during moving, if an HO-3 policy is still in force?

1. Coverage up to Coverage B limits at the new location

2. Coverage up to Coverage B limits at the original location

3. Must purchase an endorsement for coverage

4. A and B are both correct.

The correct answer is: A and B are both correct.

When an HO-3 policy is in effect, it typically offers coverage for personal property during a move, which is crucial for policyholders to understand. While the policy provides Coverage B for personal property, in this scenario, both Coverage up to Coverage B limits at the new location and Coverage up to Coverage B limits at the original location are applicable. This means that while the insured is in the process of relocating their personal belongings, they are still afforded protection for their items. The coverage applies to personal property at both locations—the original residence where the items were kept before the move and the new location where they are being transported. This dual coverage offers reassurance to the policyholder that their belongings are protected against common risks such as theft or damage during the transitional period. Choosing the policyholder’s best interests in mind, this approach reinforces the flexibility and security that the HO-3 policy provides, allowing insured individuals to make their transition without the worry of losing coverage for their personal property.