General Lines Property and Casualty Insurance Practice Exam

Renter’s insurance typically provides coverage that encompasses personal property, liability, and additional living expenses. This type of insurance is designed to protect individuals who are renting residential properties, ensuring that their belongings are covered in case of events such as theft, fire, or vandalism.

Personal property coverage within renter’s insurance ensures that personal items like clothing, electronics, and furniture are protected. Liability coverage is crucial as it protects the renter in case someone gets injured within their rented space and sues for damages. Additionally, if the rented unit becomes uninhabitable due to a covered loss, additional living expenses coverage helps cover the costs associated with temporary living arrangements.

The other options do not fully capture the scope of renter's insurance. For instance, it does not provide only property and personal injury coverage, nor does it limit itself to furniture and appliances. Homeowner’s insurance standards are also not applicable because renter’s insurance specifically caters to renters' needs rather than homeowners. Thus, the comprehensive nature of personal property, liability, and additional living expenses is what makes the first choice the correct answer.