What is the special liability coverage limit for watercraft, jewelry, watches, and furs?

The special liability coverage limit for watercraft, jewelry, watches, and furs is set at $1,500. This figure is significant within homeowners' insurance policies, which often include specific limits on certain high-value items.

The reason for the limit being $1,500 is to ensure that while these items are covered under a standard policy, the coverage reflects their higher value without providing unlimited coverage, which could lead to excessive claims for high-value items. This limit applies to personal property that tends to be especially susceptible to loss due to theft or damage, hence the need for specific caps.

When reviewing the other options, it's evident that the liability limits for these specific types of personal property are structured to provide adequate coverage while managing risk for insurance providers. Higher limits might encourage more claims or result in increased premiums that would not be sustainable in the market for standard homeowners insurance. Thus, the limit is set at a level that generally accommodates most homeowners' needs for these valuable items.