Idaho Property and Casualty Practice Exam 2026 - Free Practice Questions and Study Guide

In homeowners insurance policies, personal property coverage typically extends to items that are not located on the insured premises and under certain circumstances, certain types of vehicles and trailers may be included, but there are often limitations.

In this scenario, the insured has a homeowners broad form policy that includes a limit on the dwelling but also applies personal property coverage, which likely has a separate limit based on the specific terms of the policy. Specifically, boats and trailers can sometimes be covered under the personal property section, but policy limits may apply.

When a boat and trailer valued at $2,500 are stolen, the insured would need to consider the policy provisions regarding theft as well as the deductible. In the case of a standard deductible, let’s assume it is widely set, for example, at $500. When this deductible is applied to the total value of the loss ($2,500), the calculation becomes:

$2,500 (value of the boat and trailer) - $500 (deductible) = $2,000.

However, it is common for homeowners policies to have a limit on specific types of personal property, which often caps coverage for items such as boats and trailers. If this particular policy has a limit for personal property theft or a specific