Which of the following describes property that has been temporarily removed from an insured location for protection against loss?

Which of the following describes property that has been temporarily removed from an insured location for protection against loss?

• A. Temporary Coverage
• B. Removal Coverage
• C. Transit Insurance
• D. Coverage Extension

Answer: (B)

The term that describes property that has been temporarily removed from an insured location for protection against loss is removal coverage. This type of coverage is specifically designed to extend protection to property that is not stored at its primary location, acknowledging that risks can arise even when items are being moved or temporarily relocated. For example, if personal belongings are taken from a home to avoid damage from an impending disaster, removal coverage ensures these items remain protected during the time they are outside of the insured premises. Other concepts may refer to different aspects of insulation or coverage but do not specifically address the situation of temporarily relocating items for their protection. For instance, transit insurance typically covers goods while they are being transported from one location to another, but it is more focused on the movement of property rather than the temporary removal aspect for loss protection. Coverage extension generally refers to broadening the limits or terms of an existing insurance policy rather than addressing the specific scenario of removed property. Thus, removal coverage is the most accurate description of the situation provided in the question.

The term that describes property that has been temporarily removed from an insured location for protection against loss is removal coverage. This type of coverage is specifically designed to extend protection to property that is not stored at its primary location, acknowledging that risks can arise even when items are being moved or temporarily relocated. For example, if personal belongings are taken from a home to avoid damage from an impending disaster, removal coverage ensures these items remain protected during the time they are outside of the insured premises.

Other concepts may refer to different aspects of insulation or coverage but do not specifically address the situation of temporarily relocating items for their protection. For instance, transit insurance typically covers goods while they are being transported from one location to another, but it is more focused on the movement of property rather than the temporary removal aspect for loss protection. Coverage extension generally refers to broadening the limits or terms of an existing insurance policy rather than addressing the specific scenario of removed property. Thus, removal coverage is the most accurate description of the situation provided in the question.