Keith and Dena Diem have personal property coverage with a​ $250 limit on​ currency, a​ $1,000 limit on​ jewelry, and a​ $2,500 limit on​ gold, silver, and pewter. They do not have a personal property floater. If ​$661 ​cash, ​$3,199 of​ jewelry, and
​$817 of pewterware were stolen from their​ home, what amount of loss would be covered by their​ homeowner's policy? If the​ Diems' deductible is ​$750​, how much will they receive on their​ claim?

To solve this problem, let's break it down into two steps:

### 1. Determine the covered loss amounts for each item:
The Diems' insurance policy has specific limits on personal property coverage, which restrict the amount that can be claimed for certain categories. We need to apply these limits to the stolen items.

- **Cash**: The stolen cash amount is $661, but the policy only covers up to **$250** for currency. Therefore, the covered loss for cash is **$250**.
  
- **Jewelry**: The stolen jewelry amount is $3,199, but the policy only covers up to **$1,000** for jewelry. Therefore, the covered loss for jewelry is **$1,000**.
  
- **Pewterware** (part of the gold, silver, and pewter category): The stolen pewterware is $817, and the policy covers up to **$2,500** for gold, silver, and pewter. Since the stolen amount is less than the policy limit, the full **$817** will be covered.

### Total Covered Loss Before Deductible:
The total covered loss is the sum of the covered amounts for each category:
\[
250 \ (\text{cash}) + 1,000 \ (\text{jewelry}) + 817 \ (\text{pewterware}) = 2,067
\]

### 2. Apply the deductible:
The deductible is the amount the Diems must pay out of pocket before the insurance coverage kicks in. Their deductible is $750. To find out how much they will receive on their claim, we subtract the deductible from the total covered loss:

\[
2,067 - 750 = 1,317
\]

### Final Answer:
The Diems will receive **$1,317** on their claim.

---

Would you like more details on how the coverage limits work or have any other questions?

Here are 5 related questions that expand on the topic:
1. How can a personal property floater increase the coverage on specific items?
2. What other types of property might have coverage limits in a homeowner's policy?
3. How is the deductible amount determined in homeowner’s insurance?
4. Can policyholders reduce their deductible, and what impact does that have on premiums?
5. What steps should someone take to document their personal property for insurance purposes?

**Tip:** It's important to regularly update your insurance coverage, especially if you acquire valuable items that might exceed your current policy limits.

Keith and Dena Diem have personal property coverage with a​ $250 limit on​ currency, a​ $1,000 limit on​ jewelry, and a​ $2,500 limit on​ gold, silver, and pewter. They do not have a personal property floater. If ​$661 ​cash, ​$3,199 of​ jewelry, and ​$817 of pewterware were stolen from their​ home, what amount of loss would be covered by their​ homeowner's policy? If the​ Diems' deductible is ​$750​, how much will they receive on their​ claim?

Learn how to calculate the amount covered by a homeowner's insurance policy for stolen jewelry, cash, and pewterware, applying policy limits and deductibles. Detailed step-by-step solution using basic addition and subtraction. Suitable for students in Grades 9-12.

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