Endorsements & LiabilityQuestion 88 of 158

An insured with an HO-3 policy adds a Scheduled Personal Property endorsement for her jewelry collection. Which statement BEST describes the coverage provided for the scheduled jewelry?

a.Coverage is limited to losses that occur inside the residence premises only
b.Coverage is on an open-perils basis, applies worldwide, typically has no deductible, and includes mysterious disappearance
c.Coverage applies only to perils named in the underlying HO-3 contents form
d.Coverage replaces the dwelling Coverage A limit when the jewelry is stolen

Explanation

Scheduled Personal Property removes the unscheduled special-limit cap on jewelry. Each item is listed and appraised. Coverage is generally on an open-perils ("all risk") basis with no deductible, applies worldwide, and notably includes mysterious disappearance, which the base HO contents form excludes.

Law Reference: ISO HO 04 61 Scheduled Personal Property

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