Misunderstood Personal Lines Issues (Part 1)

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Your personal property coverage territory and limitations

The questions
Do you know how much you have insured and where it is covered for:

A secondary residence?

With a student away at college?

At a storage facility?

In your hotel room on vacation?

In a motor vehicle?

Let's look at the policy...

From Coverage C - Personal Property
We cover personal property owned or used by an "insured" while it is anywhere in the world. At your request, we will cover personal property owned by :
1. Others while the property is on the part of the "residence premises" occupied by an "insured";
2. A guest or a "residence employee," while the property is in any residence occupied by an "insured."

Our limit of liability for personal property usually located at an "insured's" residence, other than the "residence premises," is 10% of the limit of liability for Coverage C, or $1000, whichever is greater. Personal property in a newly acquired principal residence is not subject to this limitation for the 30 days from the time you begin to move the property there.

The answers

At a secondary residence
In a residence other than the "residence premises", there is a limitation of 10% or $1000, whichever is greater. A secondary residence policy is appropriate or increasing the coverage on the HO3. However, increasing coverage on an existing HO3 leaves a gap for the peril of theft.

With a student away at college
A student away at college has personal property in a "Residence other than the residence premises", so the 10% limit applies again.

In a storage facility
In a storage facility, the limit is the Coverage C limit as this is NOT a "residence other than the residence premises" so no limitation applies.

In your hotel room on vacation
In your hotel room on vacation, there is no limitation since this is not a "residence other than the residence premises" within the definition in the policy.

In a motor vehicle
In a motor vehicle, the limit is your personal property limit (as there are no limitations).

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Not only are policy forms, clauses, rules and court decisions constantly changing, but forms vary from company to company and state to state. This material is intended as a general guideline and might not apply to a specific situation. The authors, LunchTimeCE, Inc., CEfreedom, and Insurance Skills Center, and any organization for whom this course is administered will have neither liability nor responsibility to any person or entity with respect to any loss or damage alleged to be caused directly or indirectly as a result of information contained in this course.