Under a Homeowner’s policy, which statement about coins and stamp collections is true?

• A. They are always excluded from coverage.
• B. They are always fully covered without limits.
• C. They may be subject to special limitations and require consideration for full coverage under certain perils.
• D. They require no endorsement.

Answer: (C)

In homeowners policies, collectibles such as coins and stamp collections are not treated like ordinary personal property. They usually carry special limits that cap how much the insurer will pay for a loss of these items, and some perils may be covered only if you arrange additional protection. Because of their high value and unique nature, many policies require scheduling or an endorsement to insure them for full value under specific perils. So the statement that these items may be subject to special limitations and require consideration for full coverage under certain perils reflects how this coverage actually works.

These items aren’t automatically excluded, nor are they guaranteed to be covered without limits, and they often do require an endorsement to achieve full protection.