What type of property might be subject to a sublimit in a homeowners policy?

Jewelry and art are often subject to sublimits in a homeowners policy due to their high value and the concentrated risk associated with insuring these items. Homeowners insurance generally covers personal property under a specific limit, but for high-value items like jewelry, fine art, or collectibles, insurers frequently implement lower sublimits to mitigate exposure to loss. These sublimits mean that even if the total personal property coverage is high, the payout for these specific valuable items will be capped at a predetermined amount, which is often significantly lower than the overall property limit. This approach encourages policyholders to consider additional coverage options, such as endorsements or scheduled personal property coverage, to ensure adequate protection for their high-value items.

In contrast, furniture and appliances are usually covered under the broader personal property limit without sublimits, while vehicles and boats are typically covered under separate policies specific to those items. Outdoor structures might have separate coverages but do not generally fall into the high-value category that warrants a sublimit.