The answer selected highlights an important aspect of how personal property is covered under an HO-2 policy. Typically, this type of homeowners insurance policy provides coverage for personal property at various locations, but there are limits to that coverage, especially for items located away from the primary residence.
In particular, an HO-2 policy often limits the coverage for personal property located at secondary residences, such as vacation homes or rental properties, to a specific percentage of the total limit. The choice indicating that 10% is the maximum for property not at the primary residence reflects this limitation accurately. This means that while the policy provides a certain limit for personal property overall, only a fraction of that amount—usually 10%—is available for property situated away from the insured's primary home.
Understanding this limitation is crucial for policyholders, as it affects how much reimbursement they could receive in the event of a covered loss at a secondary location. It emphasizes the need to evaluate the risks and values of personal property at these other locations and, if necessary, consider additional coverage options or endorsements that might fill in the gaps of protection.