South Carolina Personal Lines Practice Exam

What is the limit for theft of firearms and equipment under HO policies?

1. $1,000

2. $1,500

3. $2,000

4. $2,500

The correct answer is: $2,500

The limit for theft of firearms and equipment under Homeowners (HO) policies in South Carolina is indeed set at $2,500. This amount reflects the coverage that these policies provide for personal belongings, specifically for loss caused by theft. Homeowners insurance policies typically place limits on certain high-value items, and the coverage for firearms is designed to align with the general idea of protecting policyholders while understanding the potential risks associated with insuring such items. Given the specifics of firearms being sought after in thefts, the higher limit recognizes their value and the heightened risk involved. Other amounts provided in the choices, such as $1,000 or $1,500, do not meet the standard coverage limits set within these policies, which are specifically designed to better protect against the loss of valuable items effectively. The limit of $2,500 reflects the insurance industry's assessment of adequate coverage for firearms and related equipment, ensuring that policyholders have a reasonable level of protection against theft without undue restrictions.