Which of the following has special limits of liability under Coverage C of the HO-3—Special Form?

The correct answer highlights the specific conditions outlined in the HO-3 Homeowners Insurance policy regarding special limits of liability under Coverage C, which covers personal property. This section of the policy establishes certain categories of items that have defined coverage limits applying specifically to theft incidents.

In the case of firearms, the HO-3 policy indeed has special limits of liability restricting the amount that can be claimed when firearms are stolen. This is significant because firearms can be particularly valuable or sought-after items, and thus insurance providers limit coverage to manage risk effectively.

Other items listed, such as jewelry and electronics, also have specific limits, but in the context of the question, firearms are indeed highlighted to stand out within that specific framework of the policy. Moreover, cash typically has a different treatment in various policies and may not always fall under a listed category with special limits, making that distinction important when analyzing coverage options in the HO-3 policy.