How much will the insurer pay for stolen jewelry valued at $30,000 under a Homeowners Comprehensive Form?

How much will the insurer pay for stolen jewelry valued at $30,000 under a Homeowners Comprehensive Form?

• A. $10,000
• B. $5,000
• C. $2,000
• D. $30,000

Answer: (C)

In a Homeowners Comprehensive Form, personal property is typically subject to specific coverage limits for certain high-value items, such as jewelry. Under this type of insurance policy, there is a common sub-limit for jewelry theft claims, which is often set at $1,000 to $2,000. This means that when a policyholder makes a claim for stolen jewelry, only an amount up to that sub-limit will be covered, regardless of the total value of the jewelry. In this case, since the jewelry is valued at $30,000, the insurer would pay up to the maximum sub-limit specified in the policy for stolen jewelry. Therefore, if the sub-limit for jewelry in the homeowner's policy is indeed $2,000, that would be the payout amount for the stolen jewelry claim. Thus, the correct answer aligns with the industry-standard coverage limits, which is why it is the most accurate choice.

In a Homeowners Comprehensive Form, personal property is typically subject to specific coverage limits for certain high-value items, such as jewelry. Under this type of insurance policy, there is a common sub-limit for jewelry theft claims, which is often set at $1,000 to $2,000. This means that when a policyholder makes a claim for stolen jewelry, only an amount up to that sub-limit will be covered, regardless of the total value of the jewelry.

In this case, since the jewelry is valued at $30,000, the insurer would pay up to the maximum sub-limit specified in the policy for stolen jewelry. Therefore, if the sub-limit for jewelry in the homeowner's policy is indeed $2,000, that would be the payout amount for the stolen jewelry claim. Thus, the correct answer aligns with the industry-standard coverage limits, which is why it is the most accurate choice.