Whether it’s a 1952 Micky Mantle baseball card, a vintage fur coat or a Rolex, it’s safe to assume that you would go to great lengths to protect a family heirloom or a treasured belonging. However, you may be unaware that some of the valuables you thought were protected by insurance could have coverage limitations.
Let’s put your insurance knowledge to the test: Which of the following scenarios is completely covered by a standard homeowner’s insurance policy?
A. After hosting a party in your home, you realize a $10,000 diamond necklace has been stolen from your bedroom.
B. Your child throws a ball at your china cabinet, consequently breaking all of the dishes that were displayed.
C. You lose your engagement ring while on a trip.
D. None of the above.
If you answered D, you are correct.
While your homeowners or renters policy may cover lost or damaged items, many policies limit the valuation of items when it comes to theft. Because of this, we suggest investing in a valuable items insurance policy that offers coverage specifically for:
• Jewelry, watches and furs
• Fine china, silverware, goldware, coin and stamp collections
• Sporting equipment, guns and swords
• Works of art and musical instruments
Other belongings and property may qualify for valuable items coverage, so check with your insurance agent to see if your item qualifies.
Types of coverage for valuable items:
• Itemized Coverage: A “schedule” or agreed value policy is based off of item appraisals, which should be conducted every 3 to 5 years. If an item is lost or stolen, your insurance carrier will reimburse you the agreed upon amount.
• Blanket Coverage: Instead of individually insuring each valuable item, blanket coverage is a broader way to insure an entire collection, such as a gallery of artwork or a wine collection, for an overall limit and a per-item sub-limit coverage.
*For those wondering, valuable items insurance do not cover collectable cars. To find out about Collectable Automobile coverage, click here!