Important Property Coverage Limitations You Need To Understand
Your camera equipment, golf clubs, your diamond ring … you may think your property insurance covers the full cost of these high-value personal items – but there are certain limitations.
A standard homeowners policy includes coverage for jewelry and other precious items such as furs, art, and silverware. These items are covered for losses caused by all the perils included in your policy such as fire, explosion, windstorm, theft and vandalism, subject to the applicable policy deductible ($500 to 5% +).
However, there are special limits of liability for certain items, meaning that the insurer will not pay more than the amount specified in the policy.
To help make premiums more affordable, most insurance companies set lower limits on certain high-value items such as jewelry, collectibles, fine art, etc… primarily revolving around the peril of theft.
Using jewelry as an example, a typical limit would cover no more than $1,000 per item stolen or $5,000 maximum for all items stolen in one event. In addition, coverage for “mysterious disappearance” would not be covered at all, along with the loss of a stone or pair/set.
Let’s say you have the following items:
Diamond Ring valued at $7,500
Diamond Earrings – $4,500
Gold Pendant with Diamonds – $6,500
If someone broke into your home and stole these items you would receive only $3,000 due to the $1,000 per item special limit. This leaves you $15,500 short in total replacement cost terms.
Get the coverage you want for your valuable personal items
Add a Personal Articles Floater
Additional coverage designed to protect your valuables with limits above what your homeowners policy provides — called a Personal Articles Floater — can protect your belongings when the value is higher than the limits stated in your homeowners policy.
Before purchasing a floater, the items you wish to cover or schedule should be professionally appraised. The cost of this service varies, but when you allow us to handle your insurance program you will be able to benefit from our referral network and receive discounts for this service.
Those items are then covered with their own specified limits and fewer exclusions, giving you broader coverage. You also have the flexibility of choosing a lower deductible, or even a $0 deductible.
We can help you secure floater coverage for:
- Jewelry (rings, necklaces, earrings, watches, etc.)
- Fine art (paintings, statues, tapestries, etc.)
- Golf Clubs
- Cameras and equipment
- Musical instruments
- Collections – coins, stamps, etc.
What does scheduling a personal item cost?
Cost for scheduled personal articles varies by type of item, amount of coverage and the deductible selected. A diamond ring for example, valued at $8,000 can be scheduled for less than $100/year.
Let’s check for potential gaps in your coverage
It’s always better to know your policy’s coverage limits for any artwork, jewelry or other unique valuables you own before you suffer a loss.
If you’re concerned about whether your coverage is adequate, I can tell you what coverage is provided for valuables under your current policy, explain any special lower limits and when those limits may apply, and whether certain types of causes of loss are covered.
If you find the value of your items exceeds the coverage you currently have you may want to consider adjusting your policy coverage by adding insurance floaters to your policy.
Making updates to your policy before you suffer a loss can be invaluable. Call me today.