Homeowners Policy (HO)Question 327 of 474
A burglar takes $600 in cash and $4,000 of jewelry from an insured home. On a standard unendorsed homeowners form, before any deductible, how much is payable for these two items?
a.$1,500
b.$4,600
c.$1,700
d.$4,200
Explanation
On a standard unendorsed form the special limit for money and coins is $200 and the limit for theft of jewelry, watches and furs is $1,500, so the payment is $200 + $1,500 = $1,700 before any deductible. The $4,600 figure ignores both special limits and simply pays the full loss. The $4,200 figure caps the cash but forgets that stolen jewelry carries its own $1,500 cap.
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