Texas Adjuster Practice Test 2025 – 400 Free Practice Questions to Pass the Exam

The correct term that describes the specific limit of liability for personal property away from the residence is Coverage C Limit. In homeowners insurance policies, Coverage C typically refers to personal property coverage, which includes items owned by the insured, such as furniture, clothing, and electronics. This coverage usually extends to personal property even when it is away from the insured premises, but it comes with specific limits regarding the amount that can be claimed for those items.

This distinction is particularly important for policyholders to understand, as the Coverage C Limit specifies how much will be covered for personal property stolen, damaged, or lost while it is outside the home. Different types of insurance may have varying limits and conditions, but understanding that Coverage C applies to personal property both on and off the premises helps in assessing and managing risk effectively.

The other options focus on different aspects of liability and coverage that do not specifically define the limit for personal property away from the residence.