What is the special liability limit for money in homeowners insurance?

In homeowners insurance policies, there is a specific liability limit for money and related property. The limit typically applies to cash, banknotes, and other similar forms of money. In Kentucky, as per standard homeowners insurance policies, the special limit for money is set at $200. This means that if a homeowner experiences a loss of cash or money-like items due to covered perils, they would only be compensated for up to $200, regardless of the total loss amount. This limit is established to encourage policyholders to safeguard their money and valuables outside of their insured property, as such items are considered high-risk for theft and loss. Recognizing this limit is crucial for homeowners to understand their coverage and to take appropriate measures to protect their cash and financial assets.