Under the dwelling policy, how is Coverage C - Personal Property defined?

Coverage C - Personal Property under a dwelling policy is specifically defined as being limited to 50% of the amount of insurance that is written as Coverage A. This means that if you have a specific amount insured for the dwelling under Coverage A, Coverage C would be set at half of that amount, thus providing a standard limitation for personal property coverage in various dwelling policies.

This approach offers a clear guideline for policyholders on what to expect regarding the coverage of personal belongings. It also ensures consistency in the underwriting process across different policies while maintaining a balance between the insured dwelling and the personal property contained within it.

The other options do not accurately represent the provisions of Coverage C. For instance, stating it as a prohibited coverage does not align with how personal property coverage functions within dwelling policies. Furthermore, suggesting that it automatically provides a percentage of Coverage A without specifying the limit, or that it’s restricted to covering a servant’s property, deviates from the standard definitions and intent of the dwelling insurance framework.