Under an HO-2 policy, also known as a Broad Form Homeowners Policy, there is a specific limit regarding the coverage of personal property that is not located at the insured's primary residence. The policy typically allows for coverage on unscheduled personal property located away from the residence, generally capping that coverage at a certain percentage of the total personal property limit. In the case of an HO-2 policy, this limit is set at 10%.
This means that if the insured has a total personal property limit of, for example, $100,000, then the coverage available for personal property that is not at the primary residence would be $10,000. This is an important aspect for policyholders to understand, as it helps them know how much coverage they have for their belongings when they are away from home, such as for items in storage or travel.
Understanding these coverage limits is essential for homeowners to effectively manage their risks and to ensure they have adequate protection for their personal items, both at home and while traveling or stored elsewhere.