Mississippi Property & Casualty Practice Exam

What is the maximum coverage for silverware under homeowners insurance?

1. 10%

2. 20%

3. 25%

4. 30%

The correct answer is: 25%

Homeowners insurance policies typically provide coverage for personal property, including valuable items like silverware. However, there are specific limits that apply to certain categories of personal property. In most standard homeowners insurance policies, there is a limitation on the amount covered for personal property that is classified as "perishable" or "valuable." In the case of silverware, the maximum coverage provided under homeowners insurance is often set at 25% of the total personal property coverage limit. This means that if a homeowner has $100,000 worth of personal property coverage, they would have a maximum of $25,000 coverage specifically for silverware. This percentage is important as it accounts for the higher value of items such as silverware, jewelry, and collectibles, distinguishing them from standard household items. Understanding these specific limitations is crucial for homeowners as they might consider additional coverage options, such as scheduling valuable items on their policy, to ensure they are adequately protected beyond the standard limits provided for high-value personal property.