If you have financed your home, as most of us do, you are likely required to carry homeowner’s insurance by your lender. While homeowner’s insurance is extremely important and will protect your home and many of your personal assets, it often does not cover valuable pieces of personal property such as expensive musical instruments, expensive jewelry, historical artifacts, fine art, or any item that may have a unique or special value.
Standard homeowner’s insurance policies have limits on the value of items they will cover – according to a report in Bloomberg, items with a value of over $250,000 will not be covered by most policies. In addition, standard liability limits for theft may be extremely low. As a result, without specialized coverage, you may find yourself with no recourse should a valuable possession be damaged, destroyed, or stolen.
Fortunately, there are Options
If you find yourself reading this and starting to worry about particular assets you have, relax. There are two options – raising the limits on your homeowner’s insurance policy or specifically insuring (scheduling) your items. While raising your homeowner’s policy limits costs less up front, it is advisable to schedule valuable items for a number of reasons, including the following:
- Scheduling personal property may require an appraisal or Bill of Sale – which means that you will know exactly what the item is insured for should a particular item be lost, damaged, destroyed, or stolen.
- Scheduling valuable items results in broader insurance protection, as standard homeowner’s policies generally do not cover accidental loss of an item. If you schedule your wedding ring and it goes down the drain, for example, you will be covered.
- Scheduling particular assets will cover items even when you are away from home. As a result, if you travel often with your expensive asset or assets (for example, a musician with a fine instrument), it would probably be a good idea to schedule certain items.
Keep in mind that scheduling certain items is not only for art collectors or the extremely wealthy. Even people of more modest means can have assets that have significant and sentimental value. Examples of common items that many of us have that should be insured include engagement and wedding rings, fine art, other jewelry, and even coin or stamp collections.
Call Us Today for a Quote
If you have unique and expensive valuables in your home, you should make sure that they are insured. To learn more about what type of coverage is right for you and to receive a quote on a policy, call us today at 203-367-7704.