North Carolina Adjuster Practice Exam

Which homeowners policy coverage typically does NOT include a deductible?

1. Personal property damage

2. Fire Department Service Charge

3. Liability coverage

4. Dwelling coverage

The correct answer is: Fire Department Service Charge

In homeowners insurance policies, certain coverages may or may not involve a deductible. The fire department service charge is one of the exceptions to the general rule regarding deductibles. This charge typically covers the cost of the local fire department when they respond to an incident but does not directly involve property damage or liability claims. It is designed to ensure that policyholders can access emergency services without a financial burden upfront. On the other hand, personal property damage, liability coverage, and dwelling coverage generally do have deductibles associated with them. The deductible represents the amount that the policyholder must pay out of pocket before the insurer pays the remaining balance of a covered loss. Therefore, the fire department service charge is unique in that it typically does not require a deductible to be paid by the insured.