Homeowners Policy (HO)Question 334 of 474
A house fire destroys $9,000 of silverware. How does the $2,500 special limit for silverware apply to this loss?
a.It is voided once a fire report is filed
b.It is a theft limit, so Coverage C applies
c.It applies to any peril, so $2,500 is paid
d.It applies, but doubles for fire losses
Explanation
The $2,500 special limit on silverware, goldware and pewterware is written for loss by theft, so a fire loss is settled under the ordinary Coverage C limit instead of the sublimit. The answer applying $2,500 to any peril confuses a theft sublimit with a class limit that runs across all perils. No special limit doubles because the peril happened to be fire.
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Related questions on this topic
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