3. Under the Homeowners HO-3 Policy, the maximum dollar amount that will be paid for damage to any one tree, shrub or plant is
Answer: C
The maximum dollar amount paid for damage to any one tree, shrub, or plant under the Homeowners HO-3 Policy is $500.
Under the Homeowners HO-3 Policy, the coverage limit for damage to any single tree, shrub, or plant is set at $500, which reflects a standard limit for such claims.
A) $100
Option A is incorrect as it underestimates the coverage amount provided by the HO-3 Policy. The policy explicitly states a higher limit than $100 for damage to trees, shrubs, or plants, making this option insufficient.
B) $250
Option B incorrectly suggests a coverage amount that is lower than the policy stipulates. The HO-3 Policy offers more substantial coverage than $250, which does not align with the established limit for these types of claims.
C) $500
Option C is correct as it accurately reflects the maximum dollar amount that will be paid for damage to any one tree, shrub, or plant under the Homeowners HO-3 Policy. This limit is designed to provide adequate compensation for landscaping loss.
D) $750
Option D is incorrect because it exceeds the coverage limit set by the HO-3 Policy for damage to trees, shrubs, or plants. The policy does not provide payment beyond $500 for such damage, making this option inaccurate.
Conclusion
The correct answer, $500, is directly aligned with the Homeowners HO-3 Policy's coverage limits for landscaping damage. All other options either fall short of or exceed the policy's specified amount, confirming that $500 is the definitive correct answer.