Special limits on jewelry, firearms, cash and collectibles

A standard homeowners policy pays far less for certain categories of belongings than their value or your overall personal property limit would suggest. In the ISO HO-3 (form HO 00 03 05 11), theft of jewelry and watches is capped at $1,500, theft of firearms at $2,500, theft of silverware at $2,500, and money of every kind, including coins and bullion, at $200. These caps sit inside your Coverage C limit and are not added to it. Valuable items need a schedule or an endorsement, and the time to arrange it is before the loss.

Your insurer's form may use different dollar amounts, so treat the figures here as the ISO baseline and check your own policy under Coverage C, Special Limits of Liability.

The ISO caps at a glance

Each limit is the total for all property in that category in a single loss. Ten rings stolen in one burglary share one $1,500 limit. Per the form, the special limits do not increase the Coverage C limit.

Source: the ISO HO 00 03 05 11 form as posted by the Maine Bureau of Insurance. The same dollar amounts appear in the HO-4 renters and HO-6 condo forms.

ISO has also published a 2022 homeowners program (the "03 22" form editions, such as HO 00 03 03 22) that raises several special limits. As filed in North Carolina, effective June 1, 2027, the HO-3 changes include money from $200 to $300; securities, passports and tickets from $1,500 to $2,000; watercraft and trailers from $1,500 to $2,000; theft of jewelry, watches and furs from $1,500 to $2,000; and business property on the premises from $2,500 to $3,000, plus a new $2,000 limit for model or hobby aircraft. Most policies in force still use the 2011 form or the insurer's own form, so your declarations page and policy jacket show which edition you have.

Theft-only limits and any-peril limits

The wording difference changes how a claim works. The jewelry, firearms and silverware limits are written for loss by theft. If a fire destroys the jewelry box, the jewelry is ordinary personal property under Coverage C and is not capped at $1,500, subject to your overall limit and the form's other rules. If a burglar takes it, the cap applies.

The money, securities, watercraft and business-property limits apply to any covered peril. A $5,000 coin collection that burns is paid at $200, because coins fall into the money category whatever the cause of loss. A stamp collection is in the $1,500 category with passports and tickets.

Two other details trip people up. Theft coverage under the form includes attempted theft and the loss of property from a known place when it is likely that the property has been stolen. A ring that disappears with no sign of theft, or one you lose, is not a named peril under Coverage C. And anything you have specifically scheduled on another policy or endorsement is removed from Coverage C altogether, so you cannot collect under both.

How a theft plays out (hypothetical)

Say a burglar takes $9,000 of jewelry, $6,000 of firearms and $800 in cash. The figures are invented to show the arithmetic.

That is an $11,600 shortfall, and your deductible comes off the covered loss before the insurer pays. Theft is uncommon: III, citing ISO, reports 0.12 theft claims per 100 house-years from 2019 through 2023, with an average payment of $5,524, and theft made up 0.6% of homeowners losses in 2023. The categories above are where an average claim understates your exposure.

Collections and categories people miss

• Coins, bullion and medals. All go in the $200 money category. Many collectors assume the $1,500 jewelry limit or the full Coverage C limit applies.
• Stamps, tickets and documents. $1,500 combined, though it includes the cost to research, replace or restore the information.
• Gold or silver that is not silverware. Bars, rounds and loose metal are treated as bullion or money, not as silverware.
• Watercraft and trailers. A kayak, a jet ski and its trailer together can exceed the $1,500 watercraft limit quickly. See Golf carts, boats and ATVs under a homeowners policy.
• Home office equipment. Business property on the premises is capped at $2,500. Details are in business property at home: what a homeowners policy pays.
• Lost items. Dropped earrings and misplaced watches are not covered by the base form, whatever the limit.

Ways to close the gap

1. Schedule the items. The NAIC's consumer guide describes a scheduled personal property endorsement, also called a personal article floater, for jewelry, furs, stamps, coins, guns, computers and antiques whose value exceeds the normal limits. Each item is listed with a value, and the schedule typically covers more causes of loss than the base form, often including loss and mysterious disappearance. Whether a deductible applies depends on the insurer. Read scheduling jewelry, art and valuables before you buy.
2. Raise the special limits by endorsement. Many insurers offer an endorsement that increases some of the caps without itemizing. In ISO's program it is Coverage C Increased Special Limits of Liability (HO 04 65). It suits a household with a lot of moderately valuable pieces rather than a few expensive ones.
3. Buy a separate valuables policy. For serious jewelry, art or gun collections, a standalone policy may offer broader terms. The trade-offs are in jewelry insurance: homeowners rider or standalone policy? and insuring art, collectibles and wine.
4. Keep cash out of the house. There is no practical endorsement for cash. A bank account is the better place for it.

Before you schedule anything

1. Photograph each item and keep receipts, appraisals and serial numbers, especially for watches and firearms. The home inventory builder helps.
2. Get a current written appraisal for pieces worth a few thousand dollars or more, since metal and gemstone prices move.
3. Find out how the endorsement pays: a stated value or an agreed value schedule can settle differently from replacement at the insurer's option.
4. Ask about coverage away from home, in transit and in a safe-deposit box.
5. Run the valuables coverage checker against your own list.

Key takeaways

• The ISO HO-3 caps theft of jewelry at $1,500, firearms at $2,500 and silverware at $2,500, and caps money, coins and bullion at $200 for any cause of loss. Your insurer's amounts may differ.
• Limits apply per category per loss, so several stolen items in one category share one cap.
• Jewelry, firearms and silverware limits are theft-only, but coins, stamps, watercraft and business property are capped regardless of the peril.
• A scheduled endorsement, an increased special limits endorsement or a standalone valuables policy closes the gap, and each must be in place before a loss.
• Inventory, photos and appraisals decide how smoothly a valuables claim goes, so make them now.