What is the maximum benefit that can generally be claimed for contents under an HO-3 policy?

Under an HO-3 policy, also known as a homeowners policy, the maximum benefit that can generally be claimed for personal property or contents is typically set at 50 percent of the Coverage A limit, which covers the dwelling itself. This means that if a homeowner has a Coverage A limit of $200,000 for their dwelling, they would be eligible to claim up to $100,000 for personal property under the contents coverage.

This percentage allocation is designed to provide a standard level of protection for homeowners, balancing coverage for both the dwelling and the belongings within it. By setting a clear relationship between the dwelling coverage and personal property coverage, insurance providers can help ensure that clients have adequate protection without the risk of underinsuring their most valuable items.

Other options such as 100 percent or 75 percent of the Coverage A limit are not standard for HO-3 policies and would create imbalance in coverage distribution. Meanwhile, stating that no maximum benefit applies would not adhere to the structuring of coverage limits set by these insurance policies. Therefore, the correct approach under an HO-3 policy in terms of contents coverage is indeed 50 percent of the Coverage A limit.