What sublimit applies to business equipment losses when they are away from the premises under a homeowners policy?

The correct answer is based on the standard provisions found in a homeowners insurance policy regarding personal property coverage. Typically, homeowners policies impose a sublimit for certain types of personal property when they are off the insured premises. In the case of business equipment, the sublimit is commonly set at $1,500. This means that if business equipment is lost, stolen, or damaged while away from the home, the insurance would cover losses only up to this specified amount, rather than the total coverage limit of the policy.

The reasoning behind this limitation helps insurers manage risk associated with business-related items, as homeowners policies are primarily designed to cover personal property rather than commercial assets. By setting a lower sublimit for business equipment off premises, insurers aim to reduce potential losses while still providing some coverage for policyholders who may use their personal property for business purposes.