A typical homeowners policy provides coverage for the contents of your home (your belongings). Your personal property coverage, otherwise known as Coverage C, is usually calculated at 50% of your dwelling limit. So if, for example, your house is insured for $100,000 you would generally have $50,000 worth of personal property coverage but your individual policy will give an exact amount.
How are valuable items impacted?
Valuable items are not necessarily insured to 100% of their value, even if you have enough personal property coverage to pay for a loss. Items like money, coin collections, precious metals, and securities and valuable papers have very small coverage limits. Coin collections, for example, are only covered up to $200 depending on the insurance carrier.
Items like jewelry, watches, furs, precious and semi-precious stones, silverware, goldware, pewterware, and firearms only have limitations when it comes to losses caused by theft. Jewelry, for example, has a maximum value of $1,000 but will depend on the carrier.
Despite these limits, the average homeowner with valuable property generally grossly underestimates the amount of property he/she owns. In order to ensure the right amount of coverage for all property in the event of a loss, it is important to add an endorsement to your policy. So, if you live and purchase insurance in Arlington, Falls Church, Fairfax or Alexandria it’s a good idea to contact your agent regarding any high value personal property you own and may need additional coverage.
Adding the Scheduled Personal Property Endorsement
The name of this endorsement may vary from company to company, as may the items included, but the ideas is the same. Items of value like jewelry, fur, fur-trimmed clothing, cameras, film equipment, musical instruments, silverware, golf equipment, postage stamps collections, and coins can all be scheduled to the policy, each with a separate amount of insurance. Your insurance company will have rules regarding appraisals and how often these appraisals must be updated, and your policy will likely place a separate deductible on these items in the event of a loss.
Not sure what items you own qualify? Call your insurance professional today for more information about what is included in your Homeowners policy and what personal property endorsements you may need. The cost of scheduling valuable items to your policy is nominal in terms of premium, but priceless in terms of replacing or obtaining compensation for a loss.