HOMEOWNERS POLICIES · 6 MIN READ
Coverage C Special Limits and Property of Others
Coverage C does not treat all personal property equally. Certain categories that are easily stolen, hard to value, or better insured elsewhere carry special limits of liability — dollar caps that override the overall Coverage C limit for that category. Some special limits apply to all perils; others apply only to theft. Money, bank notes, bullion, gold, silver, platinum, coins, and stored-value cards are capped at $200 in the aggregate for any loss. Securities, manuscripts, stamps, deeds, and similar paper are capped at $1,500. Theft-only caps include jewelry, watches, and furs at $1,500, firearms and related equipment (scopes, holsters, reloading gear) at $2,500, and silverware, goldware, and pewterware at $2,500. Business property has its own pair of caps: $2,500 for business property on the residence premises and $1,500 for business property away from the premises — so a business laptop stolen on a sales trip recovers at most $1,500. Watercraft (including trailers, furnishings, and motors) and trailers not used with watercraft each carry a $1,500 cap. Crucially, theft-only limits do not restrict other perils: firearms destroyed by fire are settled under the full Coverage C limit. Each cap can be raised by endorsement: HO 04 65 increases several Coverage C special limits in one schedule, HO 04 28 and HO 04 30 raise money and securities limits, HO 04 39 raises the jewelry theft limit, and HO 04 40 raises silverware. Coverage C also extends, at the insured's option, to property of others while on the portion of the residence premises occupied by an insured, and to property of guests and residence employees in any residence an insured occupies — subject to the overall Coverage C limit, not a separate automatic sublimit.
Key rules
Money and coin collections are capped at $200; securities and stamps at $1,500
The $200 aggregate cap covers money, bank notes, bullion, gold, silver, platinum, coins, medals, scrip, and stored-value cards. Securities, manuscripts, deeds, and stamps fall under the $1,500 cap. HO 04 28 or HO 04 30 raises these limits.
Why the exam cares: The $200 money figure is one of the most frequently tested dollar amounts on the personal lines exam.
Theft-only limits: jewelry $1,500, firearms $2,500, silverware $2,500
These caps apply solely to the peril of theft. Firearms include related equipment such as scopes and reloading gear. HO 04 39 and HO 04 40 increase jewelry and silverware limits; HO 04 65 provides a menu of increases.
Why the exam cares: Testers pair a peril with a category — jewelry lost in a fire is NOT capped at $1,500, and spotting that distinction earns the point.
Business property: $2,500 on premises, $1,500 off premises
The lower away-from-premises cap reflects greater theft and transit exposure. Dual-use electronics are allocated by primary use, so a primarily business laptop stolen on the road is limited to $1,500.
Why the exam cares: Scenario questions place a business laptop in a hotel or car and ask the maximum recovery; the on/off premises split is the tested fact.
Watercraft and non-watercraft trailers are each capped at $1,500
The watercraft cap includes the craft, trailers, furnishings, equipment, and outboard motors. Serious boats need a boatowners or inland marine policy for adequate hull coverage.
Why the exam cares: The exam uses these caps to show why homeowners coverage is inadequate for boats, steering candidates toward separate marine forms.
Property of others is covered at the insured's option within the Coverage C limit
Coverage C can extend to property owned by others while on the occupied portion of the residence premises, and to property of guests and residence employees in any residence occupied by an insured. There is no automatic separate sublimit.
Why the exam cares: Distractors invent a carve-out sublimit; the tested nuance is that the extension is elective and rides inside the ordinary Coverage C limit.
Numbers to memorize
- $200 — aggregate special limit on money, bullion, gold, silver, platinum, coins, and stored-value cards (all perils)
- $1,500 — special limit on securities, manuscripts, stamps, and deeds; also the theft cap on jewelry, watches, and furs
- $2,500 — theft cap on firearms and related equipment; also the theft cap on silverware, goldware, and pewterware
- $2,500 / $1,500 — business property cap on premises versus away from premises
- $1,500 — cap on watercraft (with trailers, motors, equipment) and on trailers not used with watercraft
Common traps
- Confusing theft-only limits with all-peril limits — remember jewelry, firearms, and silverware caps apply ONLY to theft; a fire loss to those items is settled under the full Coverage C limit.
- Confusing the money cap with the securities cap — remember money and coins stop at $200 while securities, stamps, and manuscripts get $1,500.
- Confusing on-premises with off-premises business property — remember $2,500 at home drops to $1,500 away, and primary use decides how dual-use electronics are classified.
- Confusing property-of-others coverage with a mandatory sublimit — remember the extension is at the insured's option and is subject to the overall Coverage C limit, not an automatic $1,000-style carve-out.
Memorize the special limits as a sorted ladder ($200, $1,500, $2,500) and tag each rung with its categories and whether the cap is theft-only.
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