An insured's homeowner policy has a $50,000 personal property limit. Disregarding any deductibles, what is the most the insured can collect if a boat valued at $1,500 is stolen from the premises?
Your answer: $1,500 is correct.
The insured can collect up to $1,500 because of the "special limits" that apply to watercraft. He can collect this full amount even when the deductible is considered. For example, if a policyholder had a deductible of $500 and a covered loss to watercraft valued at more than $2,000, he could collect a maximum of $1,500. However, the theft of watercraft off the insured's premises is not covered by any of the HO forms except the HO-5 form.