Valuable Items Coverage – Everything You Need to Know
Valuable Items Coverage provides a specific amount of insurance for some of your most valuable items in your home. Most people associate this coverage with jewelry, but that is not the case. Valuable Items Coverage provides insurance coverage for Jewelry, Furs, Guns, Fine Art, Cameras, Musical Instruments and Sports Equipment or Memorabilia just to name a few. We will discuss the steps to make sure your most valuable items are insured properly.
What is Valuable Items Coverage?
Valuable Items Coverage provides a specifically stated amount of insurance for a particular item if it were to be lost, stolen or damaged from a covered loss. Valuable Items Coverage can either be added to your existing Homeowners Insurance policy or a separate Valuable Items policy can be purchased.
Doesn’t my Homeowners Insurance provide coverage?
Your homeowner’s insurance does provide a small amount of coverage for your valuable items. If an item were to be lost/stolen or damaged due to a covered loss your homeowners’ coverage normally provides up to a specifically stated amount of insurance for the item (normally the maximum amount is $5,000 total) BUT the item would also be subjected to your deductible. For instance, you lost a diamond earring that has a value of $8,000 for the pair; Your homeowner’s insurance would only provide you with coverage up to $5,000.00 and if you have a $1,000.00 deductible on your homeowner’s insurance policy you would have to pay out the $1,000.00 before insurance would kick in. If you were to specifically schedule those $8,000.00 earrings on either your homeowner’s insurance policy or purchase a separate policy for your valuable items, you would get the full $8,000.00 value for the earrings AND there is no deductible that would apply.
What items can be covered under a Valuable Items Policy?
Here is a list of items that can be scheduled on your valuable items policy:
- Fine art
- Postage stamps
- Sports equipment
- Musical instruments
- Golfer’s equipment
- Coin collections
- Sports memorabilia
- Miscellaneous items (would need to be discussed with your insurance agent)
How do I schedule items on a Valuable Items policy?
To schedule your specific valuables either an appraisal or a bill of sale is required. We highly recommend getting an appraisal done on any items of high value. If it is a new purchase, we still recommend getting an appraisal because sometimes the value of the item is higher than what you paid for it. This goes for all your items you would like specifically scheduled not just jewelry.
Take inventory regularly of your possessions.
We recommend taking inventory at least yearly of your valuable items. This helps with determining if you need to add or remove an item from your policy. Also, we recommend not just making a list of the items you are in possession of but also in some cases a photo of the item also helps in case of a loss along with the appraisal or bill of sale.
If you are interested in looking into purchasing a Valuable Items policy please contact your agent at Hanson & Ryan, Inc. They will be able to provide you with the information you will need in order to schedule your most precious assets.