Why should you consider adding valuables insurance?
You may think that your homeowners insurance policy provides adequate coverage for your valuables, but some policies may provide limited or no coverage for certain items if damaged or stolen.
For example, many homeowners policies generally have a $1,000 or $1,500 coverage amount for jewelry if the loss is due to theft. These limits are in place to help keep homeowners policies affordable. However, if jewelry valued at $3,000 is stolen from your home and you only have a $1,000 limit, you’d only receive $1,000 of the $3000 needed to replace those items.
That is when an insurance endorsement (or a rider) would provide increased coverage for your valuables. For an additional premium, averaging around $200/year (depending upon coverage amount) this can really help protect from the loss of high-end valuables such as:
- Jewelry and engagement rings
- Silverware, china and crystal
- Fine art
- Stamp and coin collections
- Sound equipment (recorders)
- Sports equipment (archery, camping, fishing, skiing)
- Wedding gifts
- Musical instruments
- Golf Equipment
- Pedigreed dogs
- Garden tractors
- Political campaign collections
Some companies offer an even broader Valuable Items policy where you can enjoy higher limits and protection. Coverage up to $50,000 could be purchased for jewelry, antiques and art as well as $20,000 in coverage for silver or furs. No appraisal is needed for these policies as it would be a blanket policy covering all property you wish to insure. The maximum payment on any one item would either be $10,000 or $20,000 (depending on your state) with no deductible. If you happen to have a large collection of valuables, you may want to consider this type of protection over a homeowners rider.
Investors and serious collectors with large amounts of carefully selected antiques, coin collections, fine art or other valuables could require an even higher level of protection, a personal article’s floater may be of consideration. This type of policy ensures the receipt of proper coverage based off recent appraisal amounts or sales receipts. A personal article’s floater policy does not have a maximum amount limit for coverage and can provide actual cash value or cover the cost of repair or replacement depending on circumstance.
Here are some tips that may help you decide whether you need valuable items coverage.
Make Sure You Fully Understand Your Homeowner’s Coverage
Your policy will outline your coverage and detail the limits of how much you will be compensated when certain valuable items are damaged or stolen. Some of your valuable items may not be protected if you have inadequate coverage, so be sure you fully understand the details of your homeowners insurance policy.
Get an Appraisal
You may have possessions that are worth more than you think. How much are your new golf club’s worth? Or that jewelry you inherited from your grandmother? What about your wedding rings? To help determine if homeowners insurance alone would provide adequate coverage, consider getting a professional appraisal. You may find your items to be worth more than you think.
Create a Home inventory
Walk around your home creating an inventory of your valuables, be sure to include any photos, receipts, appraisals or certifications associated with them. You may be quite surprised at how many valuable items you own. Don’t forget to check the attic and basement for items packed away and forgotten.
How safe is your neighborhood?
If you live in an area with a high crime rate you may want to consider additional coverage to protect your valuables from theft. Local crime statistics can typically be obtained by calling your local police station. Consider installing a security alarm as well for added peace of mind - you may even qualify for a discount on your homeowners insurance!
Don’t forget the electronics?
Take note of every electronic device in your home. Do you have high end computers, cell phones, laptops, tablets or gaming systems? Be sure your homeowners insurance can cover your tech in the event of a loss.
Review your coverage frequently
Make sure your home and its contents are properly covered by discussing your needs with a SEFCU Insurance Agent today. Right after the holidays is a great time to review your policy. Be sure you have enough coverage for the valuable gift you may have just received from a loved one.
Some content courtesy of Travelers Insurance