Like all homeowners insurance policies, condo insurance policies have maximum limits the company will pay for loss to specified types of property (these limits can vary among companies). It's important to understand these limits and how they apply.

For example:

• Money, bank notes, coins -- $200
• Business property -- $1,000 on premises, $250 off premises
• Watercraft including trailers, furnishings and equipment -- $1,000
• Trailers (other than boat trailers) -- $1,000
• Firearms (applies to theft only) -- $2,500
• Silverware and goldware (applies to theft only) -- $2,500
• Computers and data processing equipment -- $5,000
• Rugs, tapestries (theft only) -- $5,000 one article, $10,000 aggregate

These limits are applied because it's the fairest to all policyholders.

An example: Since most people don't own a yacht, it would be unfair to increase everyone's premium to cover the losses of the few who own yachts. Likewise, it would be unfair to force everyone to share in the losses of people with expensive collections -- firearms or silverware.