Why You May Need Extra Insurance for Valuables
When you purchase a home insurance policy, your expectation is that it will cover the cost of items you own, in the event of a catastrophe. However, most homeowner insurance policies include limits for certain categories of items. Know what you are covered for and talk to your insurance agent about getting extra coverage if you need it.
Jewelry Limits Easily Exceeded
Home insurance policies frequently have special limits for jewelry which an average household can exceed. Something like an engagement ring can exceed your limit on jewelry alone. Check your policy limits, and if you have a particular piece of high-value jewelry, talk to your insurance agent about increasing your limits and theft protection outside of the home.
In many cases, insurance plans offered to you at the time of purchase by jewelry stores, are more expensive, and may offer less coverage than simply adding the coverage to your home insurance.
Fine arts, cash and Collectibles
Cash, Fine Arts and collectables also may be subject to limits on your policy. Consider a safety deposit box for some of these items, and always consult your insurance broker for options and recommendations on your homeowner’s policy.
If you are a collector of anything, you have valuable resources tied up in your collection and you should consider separate insurance for it, particularly if you display your collectibles at shows or fairs.
Home Electronics
Computers, televisions and stereo systems all fall under the “home electronics” banner. Most households exceed the policy limits in this category. If you have a particularly pricey laptop or current camera equipment, chances are good you’re over your limit and should seek extra coverage.
Replacement Value versus Cash Value
You usually have the option with your policy to pay a little bit more on your premiums to ensure you can replace your items at replacement value rather than just receiving a payout for their original value. A laptop that cost $1000 five years ago can easily cost $2000 today for comparable technology. If you just receive the original value of your items, you may find yourself going significantly out of pocket to make up the difference.
Keep Receipts and Documentation
When you purchase and repair your insured valuables, keep receipts and documentation in a safe place away from the home if possible. Make sure you catalogue all of your items with photographs with a time stamp and receipts where possible. Your broker can assist with documentation and recommendations in this area.
No matter what your homeowner and property insurance needs are, Drayden Insurance can help you find the best solution. Our brokers will work with you to develop the best plan to suit your needs!