Homeowners Policy (HO)Pregunta 336 de 474
A fire destroys three ornamental trees worth $1,200 each on an insured's lot. Coverage A is $300,000. Under the trees, shrubs and other plants additional coverage, the policy pays:
a.$15,000 in total
b.$1,500 in total
c.$3,600 in total
d.$500 in total
Explicación
This additional coverage is limited to 5% of the Coverage A limit in any one loss, here 5% of $300,000 = $15,000, but no more than $500 for any one tree, shrub or plant. Three trees at $500 each comes to $1,500, well under the $15,000 ceiling. The $15,000 answer applies only the aggregate cap, and $3,600 ignores the per-item cap.
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