Did You Get Something Shiny This Christmas?

ImageDid you receive an expensive piece of jewelry from a loved one this Christmas? Some diamond earrings, a Rolex watch, or even the long-awaited engagement ring? Be sure that your new gift is properly protected.

 The standard homeowners policy may not have the right amount of coverage for these types of high value items, which could leave you on the hook for a large portion of the cost to replace them.  While a homeowner’s policy will cover your personal belongings in the event they are damaged or destroyed by a covered loss, there are instances when coverage will be capped at a particular limit, leaving you paying out-of-pocket for anything over that amount. For instance, many home insurance policies cap theft of jewelry coverage (among other items) at a certain amount to help assure honesty, but can be also work against you if you are not careful.

There are ways to insure high value items that will prevent this type of situation.  Jewelry, fine arts, musical instruments, and much more can be “scheduled” on a personal property policy, expanding the coverage for these items under a typical homeowner’s policy.  When you schedule an item, you insure it at an appraised amount or the amount on the bill of sale. This schedule is attached to your home policy. Then, if one of the scheduled items is stolen or damaged, instead of the carrier paying you for the loss up to a certain limit, you would have coverage up to the scheduled amount for that item. Not only does scheduling items eliminate caps on your coverage, but it expands coverage beyond what a homeowners policy would cover.

For instance, if a diamond were to crack, or you were to misplace it then you could file a claim to have the item repaired or replaced. for a covered claim the carrier will pay up to the limit listed on the policy schedule for the missing or damaged item.

Many carriers require an appraisal for any item over a certain value in order for it to be covered on a scheduled personal property policy. These appraisals should be updated every three years or so to ensure the values listed on the policy are kept current. Contact your agent for more information about this type of coverage.