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-3 contract has a $200 deductible on Section I. How much will the HO-3 contract pay for this loss?

Question

Quizplus · Accepted Answer

The HO-3 contract covers personal property while it is in the insured's vehicle, but only up to a limit of $500 for damage or theft. Since the loss is valued at $700, the insured will receive $500 - $200 deductible = $300 from the HO-3 contract. The fact that the automobile was unlocked does not affect the coverage, but leaving personal property visible in a parked car can increase the risk of theft.

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