Shannon, age 28, is a security analyst for an investment firm in Dallas, Texas. She recently purchased a home, and had it insured under a homeowners policy. The policy contained several limits on certain types of property. One day when she left for work, she carelessly left the garage door open. As a result, a drug addict gained easy access to the premises and stole a watch and some expensive jewelry valued at $25,000. Shannon became upset when a claims adjustor informed her that the homeowners policy would pay only $1,500 of the loss.

a. Why did the homeowners policy pay only $1,500 of the loss?

b. What could Shannon have done to ensure the policy paid the full amount of the loss?