There are several categories of covered property in homeowners insurance that are made subject to rather low limits. Most homeowners insurers will insure these categories of property for higher limits at a higher premium. These categories of personal property for which coverage is afforded subject to sublimits are (list below is examples, and subject to change in various insurance agencies) :
· a $200 sublimit on cash, bank notes, bullion, gold, silver, platinum, coins, metal, scrip, stored value cards (i.e., electronic gift cards), and smart cards;
· a $1,500 sublimit on securities, accounts, deeds, evidences of debt (i.e., promissory notes), letters of credit, manuscripts, personal records, passports, tickets, and stamps, regardless of the medium (paper or computer software) on which this type of material exists;
· a $1,500 sublimit on watercraft, including their trailers, furnishings, equipment and outboard engines or motors;
· a $1,500 sublimit on trailers or semitrailers used for items other than watercraft;
· a $1,500 sublimit for loss by theft of jewelry, watches, furs, or precious or semi-precious stones;
· a $2,500 sublimit for a loss by theft of firearms and related equipment;
· a $2,500 sublimit for loss by theft of silverware, silver plate, gold ware, gold plate, platinum ware, platinum plate, and pewter, including flatware, hollowware, tea sets, trays, and trophies;
· a $2,500 sublimit on property located on residence premises that are used primarily for business purposes;
· a $500 sublimit on business property away from residence premises except as described in the following two categories;
· a $1,500 sublimit on electronic apparatus and accessories while in or on a motor vehicle, but only if the apparatus is equipped to be operated by power from the motor vehicle’s electrical system even though capable of being operated by other power sources; and,
· a $1,500 sublimit on similar items as described in the preceding paragraph while away from residence premises but while not in or on a motor vehicle, with the same operating power limiting language.
This is an area in which comparison of the coverages offered by insurers using the ISO HO 3 homeowners insurance policy, as opposed to proprietary policy forms, may make a difference to you. There is a great deal of variation from insurer to insurer, both in the magnitude of the sublimits their policies provide and the categories of property that are subject to such sublimits.
The policies offered by some insurers provide broader coverage than that of the ISO HO 3 policy. Other companies’ policies provide lesser or narrower coverage. This is one of the areas in which comparison shopping and research may be of value to you. The more coverage you can get without the need to schedule certain categories of property, potentially the better for you. On the other hand, scheduling property that may be difficult to value in the event of loss provides the protection of an agreed amount of coverage in the event of loss. The ultimate decision depends on the extent and value of your personal property possessions that may fall into the categories of property subject to these sublimits.
No Coverage
Under the standard ISO HO 3 homeowners policy, certain categories of personal property receive no coverage. These are:
· articles separately described and specifically insured, regardless of the limit for which they are insured under any other insurance (to avoid double recovery);
· animals, birds, or fish;
· motor vehicles and accessories, equipment, or parts while they are in or on the motor vehicle;
· aircraft (not including model or hobby aircraft not intended to carry people or cargo);
· hovercraft, flare-craft, and air-cushion vehicles;
· property of roomers, boarders, or other tenants, excepting property of roomers or boarders who are related to an insured;
· property located in an apartment regularly rented or held for rental to others by an insured;
· property rented to or held for rental to others off the residence premises;
· business data, regardless of whether stored as paper, electronic, or computer records;
· credit cards and electronic fund transfer cards, except as otherwise covered
