Crime Coverage Policy Explained
What is the coverage limit under the Crime Coverage - Inside Premises - Robbery or Safe Burglary of Other Property Form?
A. $2,000 in money taken from a vault
B. $6,000 in money taken from a vault
C. $5,000 in money taken from a vault
Answer:
All the amounts stated ($2,000, $6,000, and $5,000) would be paid under the Crime Coverage policy since they are below the $30,000 coverage limit.
Crime Coverage insurance is designed to protect against losses resulting from theft, robbery, or burglary that occur inside the premises. In this specific scenario, if the amount of coverage is $30,000, all the amounts mentioned ($2,000, $6,000, and $5,000) would be covered.
The concept of deposit insurance by the FDIC ensures up to $250,000 per depositor per bank, which is unrelated to private insurance claims. This provides an additional layer of security and protection for depositors in case of bank bankruptcy.
It's important for policyholders to understand their coverage limits and what is included in their insurance policy to ensure they are adequately protected in the event of a loss due to a covered incident.