What is the tree limit typically defined as in a homeowner's policy?

In a homeowner's insurance policy, the tree limit typically refers to the coverage provided for the removal of fallen trees that have damaged a structure or have blocked a driveway. This coverage is often set at a specific dollar amount and is also linked to a percentage of the property's Coverage A, which pertains to the dwelling coverage.

The correct answer states that the limit is $250 and a total of 5% of Coverage A. This reflects standard policy provisions that designate a specific amount for tree removal in general situations and align with the common practice of linking additional coverages to the main dwelling coverage. The $250 cap is a reasonable amount that allows homeowners to manage small-scale tree removal costs effectively while providing a safeguard without excessive exclusions.

These coverage distinctions help homeowners understand what to expect in terms of compensation for specific incidents related to their property, and being aware of these limits assists them in managing risks effectively.