The named insured leaves a suitcase filled with clothing on the seat of his unattended,unlocked automobile. The loss is valued at $900 replacement cost and a depreciated value of $700.The HO-2 contract has a $200 deductible on Section I. How much will the HO-2 contract pay for this loss?

Question

Quizplus · Accepted Answer

The HO-2 contract provides coverage for personal property, even when it is inside an automobile, but only up to a limit of $500. Since the depreciated value of the clothing is $700, the policy will pay the maximum limit of $500 minus the $200 deductible, which equals to $300. Therefore, the HO-2 contract will pay $300 for this loss.

The Named Insured Leaves a Suitcase Filled with Clothing on the Seat