Question

Kenneth and Tina Diem have personal property coverage with a $250 limit on currency, a $1,000 limit on jewelry, and a $2,500 limit on Gold, Silver, and pewter. They do not have a personal property floater. If $819 cash, $1,509 of jewelry, and $1,282 of pewterware were stolen from their home, what amount of loss would be recovered by their homeowners policy? If the Diem's ductable is $500, how much will they receive on their claim?

the amount of loss covered by the Diem's homeowners policy is $__

Answer 1

Kenneth and Tina Diem's personal property limits:

Item	Amount Insurance pays	Amount the Diem's pay	Total
Cash	$250	$569	$819
Jewelry	$1,000	$509	$1,509
Gold/ Silver	$1,282	$0	$1,282
Total	$2,532	$1,078	$3,610

Without the additional coverage provided by a personal property floater, the Diem’s coverage is limited by the maximum amounts specified in their policy. Accordingly, $2,532 of their $3,610 loss would be covered by their insurance policy and $1,078 would need to be absorbed or paid out-of-pocket: $569 over the limit for currency and $509 over the limit for jewelry. Based on a $500 deductible, the Diems will receive $2,032 on their claim ($2,532 - $500).