Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Property InsuranceMedium
A client is concerned about the potential for damage to their personal belongings while they are temporarily away from their insured dwelling. Under a standard HO-3 Homeowners policy, what percentage of Coverage C (Personal Property) is typically provided for personal property while it is at another residence or in storage, anywhere in the world?
- A50% of Coverage C
- B25% of Coverage C
- C10% of Coverage C
- D100% of Coverage C
Show answer & explanationAnswer & explanation
Correct answer: C. 10% of Coverage C
A standard HO-3 policy typically provides coverage for personal property away from the premises up to 10% of Coverage C, or a minimum of $1,000, whichever is greater.
Why the other options are wrong
- A. This percentage is typically for Coverage C's limit, not its off-premises sublimit.
- B. This percentage is not standard for off-premises personal property under an HO-3.
- D. Full coverage usually applies only when the property is at the insured dwelling.
HO-3 Off-Premises Personal Property
Coverage for personal belongings when they are temporarily located away from the insured dwelling under a Homeowners 3 policy.
- Limited to 10% of Coverage C or $1,000, whichever is greater.
- Applies worldwide.
- Covers property at other residences, storage units, etc.
Memory trick: Ten percent's the rule, when your stuff's not at home's school.