December and Christmas is the time of year where people purchase expensive items, such as jewelry or art. Maybe you are getting married and you received an expensive diamond wedding ring that everyone is admiring. It looks pretty right? Insurance is probably the last thing on your mind. However, it shouldn't be. You want to immediately get that ring insured properly. Your typical homeowners insurance policy will not adequately insure your ring. You need to inquire with your insurance agent about scheduling your valuable personal property.
Coverage for theft of jewelry under a homeowners insurance policy is typically limited to $1,000 to $2,000 coverage limit. If your $8,000 diamond wedding ring is stolen, your homeowners insurance policy will only reimburse you for a fraction of its worth. You may only receive $1,000 for that $8,000 ring if it is stolen. Note that the coverage limit is for an entire claim, not a $1,000 limit per item. Coverage is extended only for certain perils, such as fire and theft, which are stated explicitly in your homeowners policy. If you lose your ring on your own or it falls down the drain while you are cleaning, you will not be covered.
Another example is firearms. Most policies have a $2000 to $3000 coverage limit. For some people, guns are a hobby and big gun collections mean big claims that you will be denied if you don't have enough coverage. If your gun collection is worth $20,000 and you don't have extra protection, you many only be covered for $2,000.
This is where scheduling your valuables onto your homeowners policy becomes important. One of the most common methods of adding coverage to your personal belongings is to add an endorsement called a floater to your homeowners insurance policy. Scheduling personal property is one of the best ways to protect your valuable items by adding dollar limit coverage and extending cause of loss circumstances.
As shown above, it is not just limited to jewelry. You can schedule firearms, arts and antiques, furs, stamp or coin collections, expensive cameras, cards and comics, and musical instruments. There is no deductible, but you will pay additional premium above your homeowners policy for that extra coverage.
In order to determine how much insurance you need for that diamond ring, you will need to have it professionally appraised. The coverage limit is the appraised value. Most likely an appraisal will need to be done every year. Items such as artwork may increase in value every year. You want to be sure that you are fully covering that piece of artwork. This can be tedious, but it is imperative and must be done to make sure you are properly covered.
Enjoy your valuables but you must make sure that they are covered in case of loss. Talk with your insurance agency like Pepe Insurance to make sure you are covered correctly.
Contact us if you need to add scheduled items to your insurance policy or want to get a quote today on personal or business insurance!