Homeowners Policy (HO)Question 330 of 474
Two rings worth $2,000 each are stolen in one burglary. Under the special limit for theft of jewelry, watches and furs, the unendorsed policy pays:
a.$3,000, being two $1,500 caps
b.$1,500 for each of the rings
c.$1,500 for the pair of rings
d.$4,000, the full value lost
Explanation
A Coverage C special limit caps the whole class of property in one loss, not each article, so a single $1,500 limit applies to all jewelry taken in the burglary and the pair brings $1,500. Treating the cap as per item would produce $3,000, and paying $4,000 ignores the special limit. Scheduling each ring is the way to insure them for full value.
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