Homeowners Policy (HO)Question 328 of 474
Thieves take a firearm collection worth $6,000 from an insured's home. The unendorsed homeowners policy carries a $60,000 Coverage C limit. What is the most it pays for the guns?
a.$6,000
b.$1,500
c.$2,500
d.$60,000
Explanation
Theft of firearms and related equipment is subject to a $2,500 special limit on a standard unendorsed form, so the large Coverage C limit does not help and the policy pays $2,500 toward the $6,000 collection. The $1,500 figure is the theft limit for jewelry, watches and furs, not firearms. Paying the full $6,000 ignores the special limit entirely.
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