Why You Need A Valuable Items Insurance Policy?
Do you own valuable items in your home, such as artwork, jewelry, or musical instruments? If one of these items was destroyed or stolen, would you want to get full replacement value?
In most cases, there is minimal coverage under your homeowner’s or renters’ insurance policy for valuable items. Those items are also going to be subject to the deductible. You can be devastated if they’re lost in a fire or stolen only to find out that you had minimal coverage for these treasured items.
The solution is to schedule specific expensive items under a separate Valuable Item insurance policy. Also known as a Personal Articles policy, this standalone policy can protect your most valued assets, whether you’re home or on vacation. Unlike your homeowner’s coverage, a Valuable Items insurance policy does not have a deductible and is based on an agreed value from an appraisal or bill of sale.
While your homeowners or renters insurance policy likely offers minimal coverage for your valuables, it’s probably not enough. Avoid future headaches and purchase separate coverage to protect these items.
What Are Valuable Items?
Some of the objects that you may choose to cover under a Valuable Items policy include:
- Jewelry (engagement rings, wedding bands, and chains)
- Fine art
- Silver, Crystal, and China
- Sports memorabilia
- Musical instruments
Types of Valuable Items Insurance
If you’re not interested in listing all your valuable items based on a specific value, you can also secure blanket coverage under a Valuable Items policy. Blanket coverage is often written up to $10,000, $25,000 or $50,000.
Blanket coverage can protect items that you own up to a specific amount for any one item. This is an excellent way to cover smaller items that are less expensive but still of value, and you generally don’t have to have an appraisal or file additional paperwork to buy a blanket coverage.
Scheduled coverage is more specific, to get this type of insurance, you might have to have your valuables appraised. Most companies can request an updated appraisal within the last three years. These items can be listed based on an agreed value, and the policy should pay for their total insured value in the event of a covered loss.
However, you should make sure what the replacement cost provisions are with the company. Depending on how the policy is written, you might not be getting the replacement value even though your policy shows a specific amount.
What Is a Covered Loss?
Homeowners and renters insurance policies typically protect your valuables only if they’re subject to a covered loss, such as theft, fire, or vandalism.
Scheduled valuable items coverage may protect you against accidental loss, such as dropping your wedding ring down the drain. You’ll have to check with the insurance carrier to determine what counts as a covered loss.
In most cases, you’ll need to provide proof that you own the items to cover them with an insurance policy. Create an inventory that includes purchase receipts. If you’re buying insurance for specific items, save the appraisal documentation.
Keep your inventory up to date and maintain paper and electronic records so that you have them handy if something unexpected happens. Spending a few minutes every year can ensure that you’re adequately covered and can help you avoid unpleasant surprises.
One of the actions on your checklist should involve meeting with your insurance advisor.