One of our policyholders recently submitted a claim for stolen silverware. The homeowner has purchased an HO3 10 00 with the H0 04 90 10 00, and has scheduled several pieces of silverware on the HO 04 61 10 00. The total amount of coverage for the class labeled "silverware" on the H0 04 61 is $11,000. The last page of the HO 04 61 states that there are "Assorted Buceletti Empire Pieces as on file at the Company." In the insured's policy file we have each piece of silver listed with an assigned dollar amount for that piece. The list we have on file came from the insured via her agent. The claim is for 8 of the 5 piece place settings of silverware and a couple or serving pieces. The insured value listed on the H0 04 61 for the stolen silverware is $6000.

To replace the stolen items it would cost $12,000. We processed our payment for $6000. The insured is arguing that we should have paid her the full $11,000 coverage limit for her stolen silver. The insured is arguing that since the HO 04 61 doesn't specifically refer to a list or schedule for the silver items like it does for jewelry and furs and some of the other classes of scheduled items, that she should have the benefit of the full amount of coverage for the silver. We believe coverage should be limited to the amount of coverage listed per stolen item. We think the HO 04 90 makes it clear that we are paying for the replacement cost of each item and the HO 04 61′s loss settlement provision makes it clear that we won't pay more than the amount of insurance. The question is, the amount of insurance listed for silverware blanket coverage or does it limit coverage per item? We look forward to your interpretation of the HO 04 61 form in relation to the classes of scheduled personal property that do not reference a list or schedule.

Massachusetts Subscriber