Is your homeowners insurance policy enough?
Homeowners and Renters policies provide coverage for personal property. These items are covered for losses caused by all the perils listed on your policy such as fire, windstorm, theft and vandalism. However there are special dollar limits for certain collectible items for specific perils.
For example, there may be a $2,000 limit for theft of jewelry even though your overall coverage limit is much higher. If you file a claim for a stolen ring with a value of $5,000, you will likely only be covered up to the $2,000 limit.
Unless you have a very broad coverage form, if you lose the ring or lose a stone from your ring, chances are there will be no coverage at all.
Scheduled Personal Property is the solution!
This is where scheduled personal property coverage comes in. Its an optional add on to your homeowners/renters insurance policy that can provide a higher dollar amount for specific items.
Some items with limited coverage you may want to consider scheduling:
- Art and antiques
- Stamp or coin collections
- Musical instruments
Benefits of scheduling items
Broader Protection – Scheduled personal property may be covered for additional risks, such as mysterious disappearance or accidently losing your scheduled item (ever heard of anyone who dropped a ring down the drain?) which typically is not covered on a standard insurance policy
No Deductible – If you purchase scheduled personal property coverage you may have the option of selecting a lower deductible or no deductible at all.
Replacement Cost Coverage: Your insurance company may pay the cost to repair or replace the damaged or lost property without factoring in depreciation; however, the amount paid will not exceed the least of these amounts:
1. Replacement cost at the time of loss;
2. The full cost of repair at the time of loss; or
3. The amount of insurance that applies to the property as shown on the declarations page of your policy.
Agreed Value Coverage: For each item designated on your policy as having agreed value coverage, the full amount shown is paid. The amount is agreed to be the value of that article or property.
*Agreed value option – things to consider
Because the value of collectibles can change with time, we recommend reviewing and updating the limit of coverage for your scheduled items on a regular basis. Appraisals are a great way to determine the current value of a collectible item.
Ready. Set. Review.
Guide Insurance Services is an independent insurance agency. We work with many different insurance carriers allowing us the ability to find the perfect solution for your insurance needs. Give us a call to discuss coverage for your collectibles.