Are you certain about what would happen if you lost your ring, a diamond fell out of your jewelry, or if it was stolen. Many people see the large amount of coverage listed under “Personal Property” and assume they have enough coverage. Specialty items such as Jewelry, Memorabilia, Collectibles, Sports Equipment, and Musical Instruments have stringent limits on a standard policy. Review your policy and talk with your professional insurance agent (not the kid answering the phone at a mail order or electronic insurance company). Your professional insurance agent will guide you through the coverage provided by your specific insurance policy and what may be needed to properly cover your valuable items. Policies will be very limited to the amount of coverage provided, they type of loss covered, and your deductible will apply. The advantage to Scheduled Personal Property or an Endorsement, that that Comprehensive Perils or All Risk coverage will apply, as well as a zero deductible. If you have a wedding ring stolen for example, many policies will limit theft coverage to $1500. If you have a $1000 deductible, you would receive a settlement of $500. What if that ring is valued at $5000 or $10,000? You would be devastated. The same applies to collectibles, antiques, sporting equipment, musical equipment.
Jewelry and Guns, are the top items covered and are the most expensive items to insure, however are still very affordable for the sense of security you are provided in the event of nearly any type of loss. They can average $8 to $10 per year per thousand dollars of coverage. Musical instruments and sporting equipment are next on the list and are much less to insure. I for example insure my golf clubs I pay less than $10 a year for the security of 100% coverage.
To protect yourself and satisfy the requirements of some insurance carriers, get a current appraisal on items valued over $5000 and keep purchase information for lower value items. Insurance carriers will have various requirements for the limit at which they require an appraisal. Most are around $10,000, however having this information at home and your insurance agent’s office can prove helpful. The last thing you want to worry about at the time of a loss is finding paperwork or trying to prove the value of what you had.
Here are some important things to discuss with your agent regarding the coverage of your valuable items.
- Is there a deductible?
- Is an appraisal required prior to obtaining insurance?
- Are the items covered no matter where they take place? Would the policy cover you for a loss that occurs during domestic or international travel?
- Are items covered for full replacement cost? Must you replace the item, or can you obtain a cash settlement?
- Does the policy cover repairs to damaged jewelry?
Please feel free to add to the discussion, share your experience, or ask me a question. Thanks for reading.