State Farm Insurance License Practice Exam

Which coverage is included in a standard farm policy under Coverage A?

1. Liability coverage

2. Dwelling coverage

3. Medical payments coverage

4. Scheduled farm personal property

The correct answer is: Dwelling coverage

In a standard farm policy, Coverage A specifically refers to dwelling coverage. This component is designed to protect the homeowner's residential structures used for farming operations, such as the primary dwelling where the insured resides. It typically covers losses due to perils like fire, windstorm, and other specified risks, ensuring the insured can recover the value of their home in the event of a covered loss. The focus of Coverage A on the dwelling makes it distinct from other types of coverage commonly included in farm policies. For instance, liability coverage typically falls under a separate section, dealing with claims made against the insured for bodily injury or property damage. Similarly, medical payments coverage provides support for medical expenses incurred due to injuries on the insured's property but is not classified under Coverage A. Scheduled farm personal property specifically refers to the coverage of listed farm items, which is also separate and distinct from dwelling coverage.