Canadian Accredited Insurance Broker (CAIB) One Practice Exam

What is considered "personal property" in insurance terms?

1. The structure of the home itself

2. Contents used by the insured while on the premises, including items for ownership and maintenance

3. Property belonging to neighbors

4. Items that were previously rented

The correct answer is: Contents used by the insured while on the premises, including items for ownership and maintenance

In insurance terms, "personal property" refers to contents that are owned by the insured and are typically used for living or maintaining the residence. This includes items such as furniture, electronics, clothing, and other possessions that the insured uses while on the premises. These items are not fixed to the structure of the home, which is classified as real property. Personal property is an essential aspect of homeowner's and renter's insurance policies, as it helps protect the insured's belongings from risks like theft, fire, or other types of damage. The other options provided do not fall under the definition of personal property. For instance, the structure of the home itself pertains to real property, which is distinct from personal property. Property belonging to neighbors is not considered personal property of the insured, and thus is not covered under their insurance policy. Similarly, items that were previously rented would not typically be classified as personal property of the insured since they do not own those items, even if they were in their possession.