Hello, I’m Dan Burghardt, the proud owner of Dan Burghardt Insurance. When it comes to property insurance, there’s one mantra that should echo in the back of every policyholder’s mind: “Man’s gotta know his limitations,” as Clint Eastwood so memorably put it in Magnum Force. Insurance policies serve as financial safety nets, but even the best of them come with restrictions. With that said, I’d like to take you through an intricate exploration of the “Special Limits of Liability” in your Homeowners, Condo, or Renters insurance policies.

Why Knowing Your Limits is Crucial

Having a safety net is reassuring, but it’s of little consolation if you don’t know the parameters. Picture your insurance policy as a road with certain speed limits. If you don’t know how fast you can safely go, you’re setting yourself up for disaster. That’s why we’ve dedicated time and expertise to curate a comprehensive guide outlining these limitations. This is your insurance road map, equipped with all the signposts you need. . Please keep in mind that all policies are not created equal so these limits described may differ from policy to policy.

Breaking Down Key Limitations

Cash Limit: $300

While it’s comforting to have some cash on hand, it’s pivotal to remember that most insurance policies won’t cover more than $300 in case of theft or damage. Our guide suggests considering a safety deposit box for surplus funds, and possibly diversifying into digital forms of value storage.

Securities and Accounts: $2,000

Important papers such as deeds, manuscripts, and securities have more than just monetary worth; they hold significant emotional and historical value too. A $2,000 limitation usually applies here. Considering the often irreplaceable nature of these items, our guide goes into the practicality of utilizing a fireproof safe or a bank safety deposit box.

Watercraft Limit: $2,000

Many people invest in boats, thinking it’s a one-time investment. However, our guide delves into the need for supplemental coverage. Standard policies typically cap watercraft and related assets at $2,000. Whether it’s a canoe or a jet ski, the replacement costs can be staggering, warranting a more nuanced look at your coverage options.

Theft of Jewelry and Precious Stones: $2,000

Jewelry often holds sentimental as well as financial value. The guide advises that you have your collection appraised regularly and update your coverage as its value appreciates. With only a $2,000 standard coverage, not updating your policy could result in a significant financial loss.

Silver, Gold, Platinum-ware: $3,000

Whether you have an antique silverware set from your grandmother or a personal collection of gold items, you need to be aware that the limit often doesn’t exceed $3,000. Our guide recommends taking inventory and storing these items in secure locations like bank vaults.

Theft of Firearms: $3,000

Firearm collections can be both a hobby and an investment. With a limit of $3,000 for most policies, the guide suggests adding a specialized firearm rider to your policy or exploring separate insurance coverage for firearms if your collection is more extensive.

Business Property at Residence: $3,000  

Property away from Residence

There’s also limited coverage for certain listed items when away from premises. Please review your policy before attempting to file a claim for a loss that occurs away from premises. You may also reference “Coverage C :Personal Property” where coverage for personal content usually includes a 10 % of content coverage limit for content when off premises. Read your policy for the restrictions.


*These limitations may vary to some degree based on the insurance carriers. All policies are not created equal

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