What is the maximum coverage limit for money in a homeowners policy?

In a standard homeowners insurance policy, the coverage for money and negotiable instruments is typically limited to a maximum of $200. This low limit is set because cash and similar items are highly portable and can easily be lost or stolen, so the insurance coverage reflects this increased risk. The lower limit encourages policyholders to manage their cash and valuable items more cautiously, as the insurance is designed to cover more substantial insured risks, such as the structure of the home and personal belongings like furniture, electronics, and clothing.

The other options reflect higher limits, which do not align with typical standard homeowners policy provisions regarding money coverage. The limits are intentionally low to encourage individual responsibility for cash and similar items. Proper understanding of these coverage limits is essential for agents and policyholders to make informed decisions about their coverage needs.