Certified Relocation Professional (CRP) Practice Exam

Insurance during relocation typically covers what kind of damages?

1. Only damages exceeding a certain monetary value

2. Any damage including wear and tear

3. Specific damages that can be documented

4. All damages to goods in transit

The correct answer is: Specific damages that can be documented

The option indicating that insurance during relocation typically covers specific damages that can be documented is accurate because insurance policies tend to have defined parameters. In a relocation context, coverage usually applies to damages that are verifiable and linked directly to specified risks. This often includes losses from events like accidents or theft during transit. Valid documentation, such as photographs or inventories, is crucial for making a successful claim, as it demonstrates the extent of the damage and provides a basis for assessment by insurers. The other choices lack specificity. Coverage typically does not encompass only damages above a certain monetary value, nor does it include general wear and tear, as this is commonly excluded from most policies. Additionally, stating that all damages to goods in transit are covered is misleading; comprehensive policies often have limitations that must be understood to manage expectations effectively. Therefore, emphasis on documented damages aligns with standard insurance practices in relocation scenarios.