Covering Valuable Possessions

We all know that homeowners insurance covers your home for damage or destruction, but what about the contents therein? Well, most policies have a limit on contents coverage of about $1,500. If you own computer equipment, art, or jewelry, however, that number doesn’t begin to cover what your stuff is really worth.

That’s why the Insurance Information Institute and KnowYourStuff.org want you to know about floater policies. These are extensions to your existing homeowners coverage that allow you to cover high-end valuables for less money than a significant boost to your general policy would cost, and also give you protection in case you were to lose a wedding ring in a hotel shower – something your regular homeowners insurance policy doesn’t cover.

Not sure if you need a floater policy? Follow these tips to make sure your valuable possessions are covered:

• Check your policy to see existing limits for valuables, and ask your insurance agent if you aren’t certain.
• Compare the cost of increasing your entire homeowners policy coverage limits or getting a floater for the necessary amount of coverage.
• If you decide on a floater policy, have any extremely valuable items appraised before determining the amount of coverage.
• Maintain a home inventory list that includes all valuable items.