Mary's house catches on fire. $9,000 of her jewelry is destroyed by the fire. What is the maximum amount her HO-2 policy will pay for this loss?

Question

Quizplus · Accepted Answer

HO-2 policies provide coverage for personal property up to 10% of the dwelling coverage. Since the dwelling coverage is not provided in the question, we cannot determine the exact amount the policy will pay. However, we can calculate the maximum amount it could pay by assuming the dwelling coverage is $90,000 (10% of $90,000 is $9,000). Therefore, the maximum amount the policy will pay is $9,000.

Mary's House Catches on Fire