What dollar limit applies to stolen money under a homeowners policy?

In the context of homeowners insurance, there is typically a specific dollar limit imposed on the coverage of stolen money. For most standard homeowners policies, this limit is set at $200. This means that if $200 or less is stolen from the insured's premises, the policy will provide coverage for that amount.

The reasoning for this relatively low limit reflects the insurer's strategy to mitigate risks associated with cash, as it is easily transportable and difficult to trace. Policies often provide higher limits for things like personal property, jewelry, and electronics, which are more likely to be included in itemized claims.

Understanding this limit helps homeowners recognize the extent of their coverage and consider supplemental options if they hold significant amounts of cash in their residence. It is also important for insured individuals to keep track of personal property and any valuables, as they might require additional endorsements to their policy for adequate protection.