What Are Special Coverage Limits Within My Homeowners Policy?

We have all heard, “Read the fine print,” referring to documents with small notations citing limitations or restrictions shown at the bottom or end. You don’t usually find these notations in an insurance policy, which means it could be easy to skim over some important sections due to the amount of information and no special characters to draw your attention to the information.

One of these sections might be the Special Limits of Liability listed under the Coverage C – Personal Property Section of the homeowners policy. This section points out some coverage limitations on specific items and shows the limits for the specific peril of theft for others. Broader coverage might be available through other types of policies for most of these items.

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The Fine Print of Special Coverage Limits

Here are several listed under this section:

1. Money, bank notes, bullion, gold, silver, platinum, coins, metals, scrip, stored value cards (gift cards) and smart cards (debit/credit cards) are limited to $200.
2. Securities, deeds, passports, personal records, stamps and some other similar types of documents are limited to $1,500.
3. Watercraft of all types, including trailers, furnishings, equipment and outboard engines or motors is limited to $1,500. Broader coverage would be available on a boat owners policy.
4. The limitation for jewelry, watches, furs, and precious and semiprecious stones for the peril of theft is capped at $1,500. It would be better to schedule these items at specific values under an inland marine policy.
5. Theft of firearms and related equipment has a maximum limit of $10,000. Again, an inland marine policy might be a better option.
6. Theft of silverware, silver-plated ware, goldware, gold-plated ware, platinumware, platinum-plated ware and pewterware has a maximum limit of $10,000. An inland marine might be a better option.
7. With many people operating businesses from home or storing commercial items at their place of residence, it is good to be aware that there is a limit of $2,500 on-premises and $1,500 off-premises coverage for property primarily used for business purposes. A commercial policy would be a better option.

See more: Setting your Insurance Policy’s Liability Limits

This is a brief overview of these limitations, paraphrasing some of the policy language, so I would encourage you to read your homeowners policy for more detailed information or contact your local Farm Bureau agent for advice on providing you with the best and broadest coverage available. For more, visit ncfbins.com.