Alabama Insurance Adjuster Practice Exam

What is the maximum amount Susan can receive for her late husband’s gravestone under her homeowners policy?

1. $10,000

2. $5,000

3. $1,000

4. $15,000

The correct answer is: $5,000

Under a standard homeowners insurance policy, there is typically a provision that addresses the coverage of items related to burial or funeral expenses. This coverage often includes the cost of a gravestone or marker for a deceased individual. In most cases, the maximum amount an individual can receive for this specific purpose is set at a limit of $5,000. This amount reflects the coverage intended to assist with modest burial expenses, which may not cover all costs associated with a burial, but provides a specific limit for items such as headstones. Understanding this coverage is crucial for homeowners, as it highlights the benefits of having insurance that extends to personal property and provides financial support in times of loss. The specific limit helps ensure that insured individuals have some level of assistance in honoring their loved ones without incurring excessive out-of-pocket expenses.