What are the limitations on personal property in an HO3 Policy?

Most companies that independent insurance agents represent use a universal homeowners insurance form provided by the Insurance Service Offices – ISO called the HO3 policy. Within the HO3 policy there are limitations on personal property items to be aware of. ISO has designed a policy that will cover the average homeowner but if you have more jewelry or other valuable items you may want to endorse your policy to add additional coverage.

Here’s a list of those items from the HO 00 03 04 91 homeowner’s form: (the form for your policy may be different)

  1. $200 for money, bank notes, gold and other coins.
  2. $1000 for Securites, accounts, deeds, etc.
  3. $1000 for watercraft including their motors and trailers.
  4. $1000 for trailers not used with watercraft.
  5. $1000 for theft of jewelry, watches and precious or semi-precious stones.
  6. $2000 for theft of firearms.
  7. $2500 for theft of silverware, silver-plated ware, goldware, pewterware, etc.
  8. $2500 for property used at any time or any manner in a business.
  9. $250 for property used in a business away from the residence premises.
  10. $1000 for loss to electronic apparatus while in or upon a motor vehicle, etc.
  11. $1000 for loss to electronic apparatus powered by a motor vehicle, away from the premises and used in a business purpose.

In addition, there are personal property items that are not covered such as:

  1. Articles separately described and specifically insured in this or other insurance.
  2. Animals, Birds or Fish.
  3. Motor vehicles or their parts. etc.
  4. Aircraft and their parts.
  5. Property of roomers or boarders.
  6. Property in an apartment you rent or hold for rent to others.
  7. Property that you rent or hold for rental to others off the residence premises.
  8. Any “business” data stored on accounting records, computers and media.
  9. Credit cards. Trading cards.
  10. Water or steam.

The two areas where we see claims exceed the limits most often are jewelry and tools used in a business. If you have extra valuable jewelry or tools and property used in a business, call us for more information on how best to insure that property, we are here to answer all your homeowner’s insurance questions.

One misunderstanding is that the $2000.00 limit on firearms is for all perils such as fire but its only for theft, there is no limit on guns that are damaged in a fire.

Musical instruments that are used in a business will be subject to the business limitation including the piano used to reach lessons in the home. Musical instruments used in a business can be inexpensively endorsed for use in a business and breakage, call us for details before you join that rock band.

***THIS ARTICLE DOES NOT INCLUDE THE COMPLETE LIST AND POLICY LANGUAGE.

***POLICIES CAN VARY FROM COMPANY TO COMPANY, PLEASE REFER TO YOUR OWN POLICY FOR SPECIFIC LIMITS, LIMITATIONS AND EXCLUSIONS.

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