Alabama Insurance Adjuster Practice Exam

Which endorsement should Monica add to her homeowners policy for her jewelry collection?

1. Scheduled Personal Property

2. Liability Coverage

3. Property Damage Endorsement

4. Comprehensive Coverage

The correct answer is: Scheduled Personal Property

Monica should consider adding the Scheduled Personal Property endorsement to her homeowners policy to ensure that her jewelry collection is adequately covered. This endorsement allows her to specifically list and insure valuable items such as jewelry for their appraised value, providing a higher level of protection than standard homeowners coverage, which typically has limits on personal property and may not fully cover expensive items. By scheduling her jewelry, she is effectively increasing her coverage limits beyond the default amounts provided in her policy, which often comes with caps on valuables, especially for theft or loss. This endorsement not only protects against the risks of loss or damage but also ensures that claims can be processed with more straightforward valuation based on the listed appraised value of the items. This tailored approach is crucial for high-value assets like a jewelry collection that could exceed standard policy limits.