Rhode Island Insurance Adjuster Exam

What items does the HO-3 policy place limits on due to specified conditions?

1. Jewelry and electronics

2. Money and precious metals

3. Vehicles and recreational equipment

4. Building structures and property

The correct answer is: Money and precious metals

The HO-3 policy, also known as a homeowners policy, includes specific limits on certain categories of personal property, particularly high-value items that are more susceptible to theft or damage. Money and precious metals fall under this category, as they can easily be stolen, lost, or damaged, and are often not fully covered under a standard homeowners policy without additional endorsements or riders. The policy typically has set limits for losses involving cash, coins, and precious metals like gold or silver, ensuring that liability for these high-value items is clearly defined. Homeowners should be aware of these limits and may consider additional coverage for valuables that exceed these caps. In contrast, items such as vehicles and recreational equipment often have their own coverage requirements under different types of policies or endorsements, and personal property like jewelry and electronics might also have specific sublimits but are not categorized the same way as money and precious metals. Building structures and property would be covered more broadly under the general structure policies, rather than specific limits like those placed on cash.