Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Property InsuranceMedium
A client owns a valuable antique coin collection worth $25,000. Their HO-3 Homeowners policy has a Coverage C limit of $100,000. The policy also includes a special sublimit for coins of $2,000 for theft. If the entire collection is stolen from their home, how much will the client receive from their HO-3 policy for the coin collection, assuming no other endorsements are present?
- A$2,000
- B$10,000
- C$25,000
- D$100,000
Show answer & explanationAnswer & explanation
Correct answer: A. $2,000
Standard HO-3 policies include special limits of liability for certain categories of personal property, particularly for theft. For coins, the sublimit for theft is typically $2,000. Even though the collection is worth more, the policy will only pay up to this sublimit.
Why the other options are wrong
- B. This is a common sublimit for other categories like jewelry, furs, or watches, but not typically coins.
- C. This would be the amount if there were no special limits for coins.
- D. This is the overall Coverage C limit, but specific items like coins have lower sublimits for theft.
HO-3 Special Limits of Liability
Specific monetary limits within a Homeowners 3 policy that restrict coverage for certain types of personal property, often for theft.
- Applies to items like jewelry, furs, watches, firearms, silverware, and coins.
- These limits are lower than the overall Coverage C limit.
- Often apply specifically to losses by theft, but sometimes to all perils.
Memory trick: For special items, a small limit's the game, don't let it bring you shame.