What is the limit of liability for personal property under the HO2 policy?

The limit of liability for personal property under the HO2 policy is determined by a percentage of the coverage A limit, which typically covers the dwelling itself. This standard is set to provide a structured approach to evaluating the extent of coverage for personal belongings and ensures that homeowners understand the maximum amount they can claim for loss or damage to their personal property.

In the case of the HO2 policy, the limit for personal property is indeed 50% of the coverage A amount. This means that if a homeowner has $200,000 in coverage A for their dwelling, they would have up to $100,000 available for personal property coverage under their HO2 policy. This ratio helps homeowners secure a balanced level of protection for both their dwelling and their personal possessions, reflecting the common valuation of personal property in relation to the home structure.

Understanding this limit is critical for homeowners to ensure they have adequate coverage in case of loss or damage to their personal items, which can include furniture, clothing, appliances, and other personal belongings.