How to Get Personal Property Insurance For Your Valuables
Did you know that your valuable personal valuables may not be covered by your homeowner’s insurance? You have homeowner’s insurance that covers the structure and you also have a blanket personal belongings coverage. However, certain items worth a lot of money may not be covered under that policy.
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It’s possible that you’ll need a separate policy or a rider for these valuable items.
What are High-Priced Items?
Certain times in your home fall under the standard personal belongings category. Things like furniture, electronics, clothing, and small valuables are in this category. If your home experienced a fire or theft and your homeowner’s insurance covers it, chances are they will help you recover the cost of these items as well.
Items that are not included are those that are considered ‘high priced.’ Items such as expensive jewelry, fine arts, or rare coin collections may not be covered under this policy. As a general rule, valuables worth more than $2,500 are often considered ‘high priced’ and need their own policy.
Obtaining the Insurance for Your Valuables
So how do you get proper insurance coverage for your valuables? You have to let your insurance agent know what you have. It’s not enough to just say it, though. You have to prove ownership and value. This can be as easy as providing a receipt. The receipt should show your name and the purchase price of the item.
The rider helps provide the extra coverage you need for expensive items. For example, let’s say you have an engagement ring worth $6,000 and your policy has a maximum coverage amount of $2,500. If your home were vandalized and the ring stolen, you might only get $2,500 for the ring. That leaves you with a $3,500 deficit.
If you had the rider, though, you could get proper coverage for the $6,000 ring. You will pay a higher premium for the rider, but it’s usually just a fraction of the amount of your full policy and well worth the protection it provides.
It’s important that you take inventory of your home every so often. Of course, if you make a large purchase, you’ll want to get insurance right away, but sometimes we forget. If you periodically take inventory of your valuables, you can determine if you have enough insurance coverage.
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If you find that you don’t have enough coverage, it’s time to call your insurance agent. Let him know exactly what you have and how much you paid for it. He can help you determine if it’s covered under your standard personal property coverage or if a separate policy/rider is warranted.
Don’t Forget Appreciating Valuables
If you are a collector of any sort, you may want to continually find out the value of your items. Let’s say you have an antique that is not worth more than $2,500 at the time your insurance policy is issued, but it appreciates in a few years. If it’s now worth $5,000, you don’t have enough coverage. You’ll need to get an appraisal on the item and then give the documents to your insurance agent so you can get proper coverage.
This is why it’s so important to continually take an inventory of your items so you know you have enough coverage.
Buying personal property insurance for your valuables isn’t hard. It’s just an important step you must take periodically as a homeowner. You are better off taking a few minutes to figure out if you have enough coverage than taking the risk that something happens to your belongings down the road. A rider won’t cost you a lot of money, but it will give you plenty of peace of mind.
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