Final Answer:
The exception among the listed personal property items subject to special limits of insurance under homeowners forms is books, tools, and instruments relating to a business, profession, or occupation. Thus option A is correct.
Step-by-step explanation:
In homeowner's insurance policies, there are specific limits on certain categories of personal property coverage. While items like watercraft, computer hardware, and money typically have special limits of insurance, books, tools, and instruments related to a business, profession, or occupation are an exception to this rule. These exceptions vary depending on the insurance policy, but they're designed to limit coverage for specific high-value items that may have a higher risk of loss or theft.
When looking at the calculation of coverage limits, it's essential to understand that these limits can vary widely among insurance policies. For instance, computer hardware may have a specific limit, say $2,500, while money might be limited to $200 in coverage. Watercraft, including equipment, could be restricted to $1,500. However, books, tools, and instruments related to a business might not have a specific capped limit, providing broader coverage for these items under the homeowner's policy.
Insurance companies often impose these limitations to manage risk and control potential losses. These restrictions help determine the maximum amount an insurance company will pay for specific types of property damage or loss, protecting the insurer from excessively large claims. Therefore, while most personal property items have special limits of insurance, certain categories like business-related tools and instruments might not fall under these restrictive caps, providing more extensive coverage for these items within the policy. Thus option A is correct.