What are the limits of theft coverage on an HO-8 form policy?

• A. The actual cash value of what was stolen, with possible additional limits
• B. Replacement cost of stolen items
• C. A fixed policy amount for all theft loss
• D. No theft coverage

Answer: (A)

The main idea is how theft losses are valued under an HO-8 form. Personal property losses, including theft, are settled on an actual cash value basis. That means the payout reflects the item’s current value minus depreciation, up to the policy’s limit, and it may be further limited by per-item sublimits for certain categories (like jewelry or collectibles). Replacement cost coverage is not standard for theft on an HO-8 unless you add a specific endorsement or use a different form. There is theft coverage under HO-8, so options claiming no coverage aren’t accurate. The idea of a single fixed amount for all theft losses isn’t how these policies work either.