What is the maximum amount payable for trees, shrubs, and plants under DP-2?

The correct answer indicates that under the DP-2 (Dwelling Property 2) form, the insurance provides coverage for trees, shrubs, and plants at a maximum of 5% of Coverage A, which refers to the total insured amount for the dwelling itself. This means that if a policyholder has a Coverage A limit of, for example, $200,000, the maximum amount that could be claimed for loss or damage to trees, shrubs, and plants would be $10,000 (5% of $200,000).

Understanding this coverage limit is important for policyholders to ensure they are adequately protected for landscape elements on their property. While trees, shrubs, and plants can be of significant value, insurance policies like DP-2 set specific limits to manage risk and ensure that coverage aligns with the overall dwelling coverage rather than providing unlimited benefits.

The other options present different maximum payout amounts which do not align with the DP-2 provisions. Option A, stating 10%, exceeds the limit provided in the policy. Option C suggests 100%, which is not applicable since the coverage for landscaping is intentionally limited to control costs. Option D’s fixed amount of $500 per item does not account for the proportionality established in the policy regarding