Dwelling Policy Practice Test

What is the coverage limit for medical expenses per person under most dwelling policies?

1. $1,000

2. $2,500

3. $500

4. $1,500

The correct answer is: $1,000

Under most dwelling policies, the coverage limit for medical expenses per person is typically set at $1,000. This coverage is designed to pay for necessary medical expenses incurred by guests who are injured on the insured property, regardless of the liability. This provision aims to ensure that homeowners can help cover medical costs without admitting fault or liability for the incident that caused the injury. The selection of $1,000 as a coverage limit aligns with common policy frameworks meant to provide a reasonable amount for minor injuries, thereby allowing policyholders to offer assistance to injured parties without facing significant financial repercussions. Understanding this limit is crucial for homeowners to manage potential out-of-pocket expenses related to accidental injuries on their property effectively. The limits vary by policy type and company, but $1,000 is a standard amount often encountered in various dwelling policies.