In a Homeowner's policy with a building coverage limit of $80,000, what is the automatically available Personal Property coverage?

In a Homeowner's policy, personal property coverage is often set at a percentage of the building coverage limit. Typically, this percentage is 50%, which means that if the building coverage limit is $80,000, the automatically available personal property coverage would be $40,000.

This coverage is designed to protect personal belongings such as furniture, electronics, and clothing that are kept within the insured residence. The formula of taking a percentage of the dwelling coverage ensures that there is a balance between the coverage for the physical structure and the personal items within it.

Therefore, the correct choice reflects this standard ratio, confirming that with a building coverage limit of $80,000, the associated personal property coverage would appropriately be $40,000. Understanding this relationship between dwelling and personal property coverage limits is critical for policyholders to ensure they have adequate protection for both their home and its contents.