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4 Valuable Possessions Which May Not be Covered by Your Home Insurance
June 13, 2018
Homeowners insurance is designed to protect yourself, your property and your belongings. What if you discovered that the most valuable items in your home weren’t actually protected by your standard homeowner policy? That could be the case if you own high-dollar items.
There are limitations built into most standard home insurance policies for coverage on items like musical instruments, valuable collections, jewelry, and other luxury items. It’s not uncommon for the value of these items to exceed the limits of your standard homeowners’ policy. An insurance rider, known as scheduled personal property coverage, is available to provide adequate coverage for these types of items.
What Does Scheduling Mean?
Scheduled personal property coverage involves the creation of a “schedule” (an itemized list) of higher-value items to be covered under a special personal property insurance rider added to your existing homeowners’ insurance policy. Blanket coverage for jewelry can be acquired under certain limitations.
Benefits of Scheduled Personal Property Coverage
In addition to providing protection against situations where standard coverage would not apply, you may be able to file certain claims without paying a deductible under some personal property riders. This is particularly useful if you’ve chosen a high-deductible plan to lower your premiums, as some high-end items may be equal to or only slightly less expensive than a high deductible.
Items you can Schedule
Types of items that are best suited to this type of added coverage include:
Jewelry Collections: Whether you own one expensive piece of jewelry or have a sizable collection, these valuables are ideal for scheduled personal property coverage. Many policies limit coverage for jewelry, and policies with high deductibles could result in a single high value piece being lost or stolen and no recovery possible. By scheduling these items for coverage independently, you can increase your coverage in such a way as to directly cover the pieces within the rider.
Electronics: From high-end entertainment systems to home office equipment, if you own a number of expensive electronics, the combined value of these items may exceed your standard homeowners’ insurance policy. This is one of the more popular categories for scheduled personal property coverage, since the loss of a $1,000 television under a policy with a $1,000 deductible may mean no recovery is possible. Scheduling your high-end electronics can allow for specific coverage for these items.
Antiques: You may be a serious collector who scours sales for a valuable find, or the lucky owner of family heirlooms. Either way, antiques should always be insured through scheduling the items according to their appraised value. Protecting antique collections with appropriate coverage can help protect the security of your investment.
Fine Art: While many of your belongings may be subject to depreciation, this is typically less likely when it comes to fine art. In fact, your collection may appreciate in value with every passing year, which means it’s wise to have your art collection regularly appraised and accurately insured. Seek a professional art appraiser to evaluate your collection and give you an honest appraisal.
Find out more about protecting your most valuable possessions with scheduled personal property coverage and explore the options best suited to your unique situation by contacting your insurance agent.