What is the maximum coverage for personal effects under the Personal Effects and Property of Others extension?

The maximum coverage for personal effects under the Personal Effects and Property of Others extension is indeed $2,500. This coverage is designed to protect personal belongings that are owned by the insured or by others while on the premises of the insured’s business.

The reason this coverage limit is set at $2,500 is to allow for a reasonable amount of protection for personal items generally kept in commercial properties, such as tools or personal belongings of employees. This amount strikes a balance between providing adequate coverage for smaller, essential items without delving into high-value personal possessions that would typically be covered under different insurance policies or extensions.

Understanding this coverage limit is crucial for businesses, as it affects how they manage risks associated with personal property on their premises. Knowing the specific coverage limit allows businesses to make informed decisions about additional coverage they may require for higher-value items.