Idaho Property and Casualty Practice Exam 2026 - Free Practice Questions and Study Guide

The statement regarding tenant's improvements, specifically that improvements not legally removable are included in the Personal Property of Others Coverage, is false. Under the Building and Personal Property Coverage Form, tenant's improvements typically refer to enhancements made to the property by a tenant, which may or may not be removable. However, any improvements that cannot be legally removed are generally considered part of the building and are covered under the building coverage, rather than as personal property of others. While improvements are important to note, the distinction lies in the fact that these improvements become part of the property and are not classified under personal property of others since they are tied to the real estate itself.

In contrast, personal property of others that is within the insured's care, custody, and control is protected up to $2,500 under coverage extensions, reflecting the insurer's acknowledgment of the responsibility an insured has for property in their possession. The building coverage adequately encompasses the essential components of a building, including structure, additions, permanently installed fixtures, and any necessary machinery and equipment. Additionally, personal property that is used specifically to service the building, such as tools or supplies, is considered part of the building coverage, as this property contributes directly to the functioning of the building and is essential for its maintenance