Protecting High-Dollar Personal Possessions
Whether it's heirloom jewelry, silverware, or a baseball card signed by Mickey Mantle, prized possessions are items you don't want to lose.
Unfortunately, these cherished belongings are probably not completely covered by your homeowners insurance.
If you take a minute to review your homeowners policy, you will find that many valuable personal possessions are only covered for $200 to $2,500. These special items have limited coverages because their values vary and are somewhat arbitrary. You may need additional insurance to make sure they're covered for their full value. Here is the coverage you can expect in a standard homeowners policy:
Money, gold, silver, and platinum (other than jewelry or flatware), coins, bank notes, and medals - $200.
Securities, deeds, manuscripts, and valuable financial papers like letters of credit or evidence of debt - $1,000.
Watercraft, including trailers, furnishings, equipment, and outboard motors - $1,000.
Trailers not used with watercraft - $1,000.
Grave markers - $1,000.
Jewelry, watches, furs, and precious and semi-precious stones - $1,000-$2,000.
Silverware, goldware, silver-plated or gold-plated ware, and pewterware - $2,500.
Firearms - $2,500.
Some policies also provide limited coverage for works of art, antiques, musical instruments, cameras, sports equipment, and oriental rugs.
You can purchase additional insurance, called a floater or endorsement, to cover your valuable personal property. A floater is like an all-risk policy -- unlike your homeowners insurance which typically covers only those specific perils that are named in the policy. An all-risk policy covers against everything except what is specifically excluded in the policy.
For example, your homeowners policy covers your diamond ring (up to a specified dollar amount) against theft because theft is a peril named in your policy. But if the diamond drops out of its setting and falls down the sink while you're peeling potatoes, the loss won't be covered unless you have additional insurance.
Floater coverage isn't expensive and is usually priced per $100 of insurance. The cost of a floater depends on what you're covering and the frequency of loss in your area.
If you own an item that doesn't fit these categories, call us at (626) 839-6061 to see how much it's covered for in your policy.
We are pleased to provide this "Bulletin" as a service to you. While this information was obtained from sources believed to be reliable, its accuracy is not guaranteed. It does not change or alter insurance contracts or coverages.
License # 0655631
Tech Topics