Christmas has passed for another year and if you were lucky enough to receive a special gift like a diamond necklace, a piece of original art, a valuable antique, or some other high-dollar item, the holiday spirit lives on.
Question is: have you properly protected that special gift?
Many people assume any item in their home is covered against damage or theft by their regular homeowners insurance policy; however, this is a misconception and a potentially costly one.
As your homeowners insurance agent can tell you, unless you’ve correctly added those items to your policy coverage, you could lose out if something happens to those expensive gifts.
Valuable Possessions Not Automatically Covered
Like all other insurance policies, homeowners policies have documented benefit limits that are payable in case of a loss.
One limitation that’s clearly documented in every policy that homeowners insurance agencies find is often missed is where the policy states that there is a coverage limit for personal property within the home.
The limit on your policy may be a lot less than you think it is, which means a lot of your personal items may not actually be covered against a loss.
In this same vein, most policies also state that they do not cover high-value items, offering a small benefit that may be only a fraction of the worth of these items.
Unfortunately, many homeowners find this out the hard way after a burglary or damage to their home that also damages their property.
How To Protect High-Value Items In Your Home
You’ll be out of luck making a claim on your standard homeowners insurance policy if something happens to your high-dollar items, which is why they are best protected by Valuable Items Coverage or by adding a Personal Articles Floater (PAF) to your coverage.
Some insurance agencies may also offer specific Collectibles Coverage policies, too.
All of these are designed to safeguard your items of value such as jewelry and art, antiques and furs, collectibles, sports memorabilia, firearms, and other expensive items when your standard policy doesn't extend coverage.
You’ll have to pay an additional premium; however, the extra cost is usually very affordable and well worth the peace of mind that you can be reimbursed for expensive or even priceless items.
How To Make Sure Your Items Are Properly Protected
When purchasing this type of supplemental coverage for your valuable personal property, it’s essential to have your items appraised to determine actual value as most of these valuable items policies do require it.
Using the actual appraisal amounts of your valuable items, you can then determine how much coverage you need to protect so you will be reimbursed for the items actual value should you have to make a claim.
Your homeowners insurance agent will need a detailed inventory of all items covered under one of these special policies and you’ll have to add and remove items from that inventory record as you obtain new items or no longer own others.
Add Valuable Items Coverage To Your Homeowners Insurance
Whether it’s a special gift from a loved one, a collection you’ve been building for years, or even a keepsake heirloom that’s been passed down in your family for generations, your valuable personal property should be appropriately protected against theft or damage.
Unless your homeowners insurance policy specifically states that it offers enough coverage for your high-value items, you probably need supplemental coverage for your valuable personal property.
Talk to your insurance agent today about safeguarding that diamond necklace and all your other valuables with the perfect affordable valuable items policy today!
