Do you have jewelry, silverware or other valuables in your home? If so, you should consider additional insurance for them, because basic homeowners policies have limits on how much they’ll cover, especially in the case of theft.
The typical limitations on most homeowner policies include:
- Coverage for breakage is very restrictive
- Items that are misplaced or lost may not be covered
- A deductible will apply
- Coverage for valuables is limited
- Coverage for older items may be limited to the depreciated value of the item not the replacement value
- Ownership and value can be difficult to prove once the item is gone or destroyed
There are two major forms of coverage available for valuables. One is “scheduling”. As the name implies, this coverage requires “scheduling” of each item individually and there is a specific amount of insurance for each item scheduled. The other option is to purchase “blanket” coverage for each category of valuables. Most “blanket” coverage policies do have a specific limit for any one item.
“Scheduling” is generally recommended for very valuable items and “blanket” coverage for the less expensive items like smaller pieces of jewelry. It is important to review your valuables coverage each year to make certain that your coverage reflects the current fair market value. It is recommended that high value items be reappraised every 2-4 years.
Benefits of “scheduling” or “blanketing” coverage include: worldwide coverage, no deductibles to pay, breakage, coverage for lost and misplaced items
Fortunately, there are precautions you can take and steps you can follow – such as purchasing adequate insurance and having your valuables appraised – to make sure that any loss is only temporary.