How is coverage for personal property outside the home limited under HO Property Coverage C?

Coverage for personal property outside the home under the HO Property Coverage C is indeed limited to 10% of Coverage C or $1,000, whichever is greater. This means that if an insured has a certain amount allocated to personal property under Coverage C, the coverage for belongings outside the home—such as items in a shed, at a park, or in a vehicle—is capped at this amount.

This limitation is designed to protect the insurance company from high exposure claims for property that is not primarily kept inside the home. It allows homeowners to have some coverage for items that may be temporarily outside, providing a balance between protection and risk management. This structured limitation ensures that while insureds have some level of assurance for their belongings away from home, they are aware that substantial claims related to outdoor property may exceed their coverage limit.

The other options offered do not accurately reflect the specifics of coverage limits for personal property outside the home. Providing a broad limit such as 50% of Coverage A or stating that it would be covered at 100% would create an excessive risk for the insurer and diverges from standard practices in homeowners insurance policies. Thus, the established guideline of 10% of Coverage C or $1,000 is both practical and consistent with