North Carolina Property and Casualty State Practice Exam 2025 - Free Property and Casualty Practice Questions and Study Guide

Broad Theft Coverage is the correct answer when discussing theft coverage for owner-occupied dwellings. This type of coverage typically protects against various types of theft, providing a wider range of protections compared to limited options. It covers personal property belonging to the insured that is stolen under specific circumstances such as breaking and entering or theft that occurs off the premise. Because owner-occupied dwellings usually house personal belongings subject to theft, broad theft coverage is designed to adequately protect the homeowner's assets.

The other options do not directly pertain to the coverage of theft in residential settings. Limited Theft Coverage, as the name suggests, offers minimal protection and wouldn't be sufficient for a homeowner's needs. Personal Liability Coverage is focused on protecting the insured from legal responsibility for injuries or damage they may cause to another person or their property, rather than covering theft. Dwelling Policy Coverage primarily addresses the physical structure of the home and the risks associated with it—not theft specifically. Thus, Broad Theft Coverage stands out as the appropriate option for comprehensive protection against theft in a residential context.