Homeowners Policy (HO)Question 350 of 531
One burglary takes a $3,000 firearm collection, a $4,000 silver service and $2,000 of bearer securities. An unendorsed form pays:
a.$5,000, using two limits of $2,500
b.$6,500 under three special limits
c.$4,000, one limit for the whole theft
d.$9,000, the whole value taken
Explanation
Each class carries its own special limit and they are applied separately: $2,500 for theft of firearms, $2,500 for theft of silverware and $1,500 for securities, which adds to $6,500. Paying the $9,000 taken ignores the limits entirely. Treating the burglary as one capped event misses that the caps attach to classes of property, not to a loss.
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