A burglar takes a $3,000 coin collection from a home insured on an unendorsed HO-5 with $90,000 of Coverage C. The policy pays:
Explanation
Open perils widens the causes of loss the form will pay for, but it does not lift the special limits sitting inside Coverage C. Money, bank notes, bullion and coins share a $200 limit on the standard unendorsed form, so a $3,000 collection produces $200. The $1,500 figure belongs to theft of jewelry, watches and furs, and $2,500 is the firearms cap; paying the full $3,000 ignores the special limit.
This topic, taught in full in the California Property & Casualty Broker-Agent guide. California Property & Casualty Broker-Agent Study Guide — 2026 Edition — PDF + EPUB, $24.99 · 14-day refund →
Practice all 531 questions free — no signup required.
Own the complete California Property & Casualty Broker-Agent guide — PDF + EPUB, $24.99 →
Related questions on this topic
- An insured moving from an HO-3 to an HO-5 gains coverage because the HO-5:
- A 90-year-old house has a market value of $150,000, while rebuilding it with its original plaster and millwork would cost $480,000. The suitable form is:
- The built-in Coverage A on a standard HO-6 is meant to insure:
- Coverage A is $250,000. One fire destroys a detached garage costing $19,000 to rebuild and a shed costing $8,000. Coverage B on an unendorsed form pays:
- When a homeowners policy pays a loss under Coverage B, the effect on Coverage A is that the dwelling limit:
- A weekend guest's suitcase and camera are destroyed by a fire at the insured's home. Under Coverage C, that property is:
Last reviewed: · editorial process