The coverage of some items is limited on a homeowners policy. Scheduling these types of items gives broader protection. We recommend that you ask us about insuring your expensive possessions and read the attached article for a better understanding of your property coverage.
Joan Liebrock, CIC
By Steve Thompson
It is important to evaluate your homeowner’s insurance policy on a regular basis and decide whether you need any additional endorsements. Scheduled personal property insurance is an endorsement that protects specific valuable items in the event of loss or damage. If you own expensive property this might be necessary to protect your possessions.
Standard Homeowner’s Insurance
Certain items are not fully covered by homeowner’s insurance policies. These might include firearms, fine art, jewelry, expensive electronics and furs. For example, you might own a gun that is worth $5,000, but if your coverage limits you to $1,000 you will not be reimbursed for the full value of the weapon.
Appraising Value for Personal Property Endorsement
Before you purchase scheduled personal property insurance, you’ll want to appraise the value of expensive items in your home. You can schedule an appraisal with a certified professional or you can use the purchase price as long as the property hasn’t depreciated. Of course, your insurance company must agree to the value of your property.
You can then add an endorsement for scheduled personal property insurance to your homeowner’s insurance policy. This can also be included on business and rental property insurance, provided the property is applicable to those policies. If you own multiple properties, you’ll need to consult with your insurance agent to find the best solution.
Covering Your Belongings
How much scheduled personal property insurance you need will depend on the value of your possessions and how much you are willing to add to your premium. Some consumers choose to insure only certain items – for example, those which are frequently taken out of the home, such as jewelry.
According to ThisMatter.com, there are no deductibles for scheduled personal property insurance, which means that if you lose a piece of insured property, you don’t have to pay out of pocket in order for the claim to kick in. Therefore, consider this before you decide how much coverage you need.
In most cases, insurance companies will establish limits for scheduled personal property insurance. For example, if they only allow you to insure $25,000 worth of property, you will not able to fully cover a group of items worth $30,000. However, you can choose to insure those items separately.
Keep in mind, as well, that there is usually a per-item limit as well as an overall coverage limit. For example, your coverage limit might be $30,000, but your per-item limit might be as low as $2,000 or $2,500. This means that you will have to seek out additional insurance for extremely expensive or rare belongings.
Appraise your personal possessions to determine how much scheduled personal property insurance you need, then talk to your agent about how to accommodate any items that do not fall under the limits for this type of coverage. You will need to sign documents and pay the premium for this additional insurance, but it might be worth it if you own expensive items.