Money or Business Property Limits at Issue

Our homeowners insured maintains ATM machines. He recently made a substantial withdrawal at his bank and went to one ATM to restock it and then went home with the remainder of the money, intending to go to other ATMs later that day. He answered a knock on the door to find himself confronted by robbers who tied him, his wife, and son up while they stole the money and several personal items.

The policy has limits for certain property: $200 for “money, bank notes, bullion, gold other than goldware, silver other than silverware, platinum, coins and medals,” and $2,500 for “property on the 'residence premises,' used at any time or in any manner for any 'business' purpose.”

Which limit applies?

California Subscriber

It is common in insurance that the wording that specifically (or most closely) describes an insured item will apply rather than more general terms. So, in this case, since “money” is specific and “business property” is general, “money” applies. Coverage is therefore limited to $200. We would not see the money as business property, since it is a medium of exchange.