Texas Adjuster Practice Test

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What is the maximum coverage amount for a covered loss to a tree under HO-B?

$500
$1,000
$250
$750

The correct answer is: $250

In the context of homeowners insurance policies, specifically HO-B (the standard homeowners policy), there are specific limitations regarding coverage for certain types of property, including trees. Under this policy, the maximum amount that can be paid out for damage to a tree—whether due to a covered peril or other incidents—is set at $250 per tree, such as when a tree falls on a structure. This limit is designed to provide some financial assistance to homeowners while also maintaining a reasonable restriction on the insurer's liability for landscaping items. Other amounts listed, like $1,000 or $500, may apply to other elements covered under the policy but do not pertain specifically to individual trees. Understanding these limits is crucial for policyholders to know what coverage they can expect in the event of damage to their property, ensuring they can plan adequately in case of such incidents.