Sorry I didn't clarify the answer for others than the one that asked.

We just need to be concerned about the personal property and we know that is not at the property (not on the premise). So the coverage for the personal property out of the premise (anywhere in the world is 10% of Cov C = 35,000*0.10=$3,500.

Loss was 5k minus deductible $500 = 4,500 - which is more than max cov $3,500. Insurer will pay $3,500.