Under an HO-8 policy, theft coverage is restricted to what?

The HO-8 policy, commonly known as a modified homeowners insurance policy designed primarily for older homes, limits theft coverage to the actual cash value of what was stolen. This means that when a theft occurs, the insurance will cover the value of the items at the time of loss, factoring in depreciation rather than the full replacement cost. Additionally, certain classes of property, such as jewelry, firearms, or collectibles, often have specific limits on coverage, meaning that theft of these items may be subject to lower maximum payouts. Understanding this aspect of the HO-8 policy is crucial for homeowners, as it emphasizes the need to be aware of the actual cash value concept and the specific limitations that can apply to high-value personal property.