Homeowners InsuranceQuestion 149 of 215
A client owns a $20,000 wedding ring she wants fully insured against accidental loss, including mysterious disappearance. Which device is most appropriate?
a.Increase the Coverage C limit by 10%
b.Add a scheduled personal property endorsement listing the ring with an appraised value
c.Rely on the $1,500 jewelry-theft special limit
d.Buy a separate flood insurance policy
Explanation
Adding a scheduled personal property endorsement (also called a personal articles floater) is the right answer. It lists the item individually with an appraised value, gives broad open-peril coverage including mysterious disappearance, and is not subject to the deductible or the homeowners $1,500 jewelry-theft sublimit. Simply raising Coverage C would not eliminate the sublimit or extend the perils.
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Related questions on this topic
- An HO-3 dwelling has a replacement cost of $500,000. The insured carries only $300,000 of Coverage A. After a $50,000 partial fire loss, how does the loss settlement provision generally apply?
- Without a replacement-cost endorsement, how is a covered loss to personal property (Coverage C) settled on a standard HO-3?
- Standard homeowners forms place special internal sublimits on certain classes of personal property. Which of the following is typically subject to such a sublimit?
- Under the standard mortgage clause in a homeowners policy, how much advance written notice must the insurer give the mortgagee before a cancellation takes effect?
- Six months after the insured's HO-3 takes effect, the insurer files a broadened policy form with the state that adds coverage for an additional peril at no extra premium. How does the liberalization clause apply to the insured's existing policy?
- Which statement best describes the California Earthquake Authority (CEA)?
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