What is TRUE about Mark’s loss while on vacation in Italy under his HO-3 homeowners policy?

The statement that Mark’s loss while on vacation in Italy under his HO-3 homeowners policy will cover all items listed under the loss is not correct, as the HO-3 policy typically provides coverage not just for losses at home but can extend to certain personal property worldwide. However, while the policy does cover personal property taken off the insured premises, it usually has specific limits for property located outside the United States and certain types of exclusions may apply.

The HO-3 homeowners policy generally offers coverage for personal belongings globally, but there are restrictions and limitations, especially for valuable items like jewelry, fine arts, and electronics. Policyholders often need to check their specific coverage limits and exclusions, as losses incurred while traveling could fall within the specific terms set forth in their policy.

Therefore, it is crucial to review the terms of an HO-3 policy to understand the extent of coverage for property outside the U.S. The reasons why the other options would typically not apply include that location limitations can restrict coverage, and certain exclusions for categories of items may also apply, such as electronics, when outside of the United States. Thus, while personal property may have some level of coverage globally, it is not absolute.