Mary's house catches on fire. $9,000 of her jewelry is destroyed by the fire. What is the maximum amount her HO-3 policy will pay for this loss?

Question

Quizplus · Accepted Answer

An HO-3 policy typically has a special limit of liability for jewelry, which is often $1,500 for loss by theft, but in the case of fire, the policy may cover up to the actual cash value or replacement cost, subject to policy limits. However, if the question implies a special limit for jewelry in general, $1,500 is a common limit for such items.

Mary's House Catches on Fire