Do I Need Additional Coverage for Valuables?
While the standard homeowners’ insurance typically covers everything you own, there are always exceptions. If you own expensive items such as collectibles, artwork, or jewelry, your standard coverage may not be enough. You could be underinsured in the event of theft, loss, or damage.
It is always important to be upfront with your agent about what you own because standard coverage only goes so far. Your existing homeowners’ policy may cover jewelry and other valuable items, but the coverage is often limited to $2,000 or less per item. This means that if the replacement cost of your items exceeds your policy’s limits, you would be responsible for paying the difference out of pocket.
Buy additional protection to ensure your items receive full replacement value. You get broader protection, sometimes even accidental damage. You also gain peace of mind that your valuables are insured.
Options for Additional Protection
To ensure adequate coverage, you can consider one of the following:
- Scheduled or “floater” policies. These are add-on policies that specifically list each high-value item and its appraised value. They typically cover theft, accidental loss, and sometimes mysterious disappearance.
- Riders or endorsements. Many insurers allow you to add coverage for valuable items directly to your existing homeowners or renters policy.
How to Insure Your Valuable Items
If you have high-value items you want to protect, here is the process for insuring them:
- Review your current homeowners policy. Start by reviewing your existing policy to determine what coverage it already provides, including any limits on valuables and other important details.
- Make a list of items to ensure. Identify the specific items you want additional coverage for. Common examples include jewelry (such as engagement rings), artwork, silver, antiques, family heirlooms, and trading cards.
- Determine the value of each item. Assign a value to each item. You may want to consider having each item professionally appraised. Keep receipts and appraisals to support your policy application.
- Evaluate your current policy limits. Check whether increasing the liability coverage on your existing homeowners policy could adequately protect your valuables.
- Get a quote for an additional policy. Ask your agent about coverage options and obtain a quote based on your specific items and their values.
Contact Us Today
Homeowners insurance covers many items, but not everything. For more valuable possessions, you may want to consider extra coverage.
Schedule your consultation today, call (734) 999-4190 or contact us online.