You might think a standard homeowners policy provides coverage for all your valuables, but most policies provide limited or no coverage for certain items — sometimes expensive ones.
If something catastrophic happened to your home (fire, tornado), would your insurance policy be enough to cover the cost of rebuilding it?
Here’s a good example – the average homeowners policy has a $1,000 or $1,500 coverage amount for jewelry for loss due to theft. These limits help keep homeowners policies affordable. If you own jewelry valued over $1,500 and it is stolen in a home burglary but your policy limit is $1,000, you will receive no more than $1,000 from the insurance company to replace the items that cost $1,500.
This is a stiutaion where an insurance endorsement (or rider) would provide The extra coverage you need for your valuable possessions. For an added premium amount, an insurance endorsement will help protect you should you suffer from the loss of more expensive valuables like jewelry, antiques, some artwork and even collectible items.
We offer these five tips to help you determine if you really need valuable items coverage.
1. Go over your insurance policy
The insurance policy is actually a contract between you and the insurance carrier. It enumerates the limits of compensation you can expect if valuable items are damaged or stolen. It is very likely certain items may be excluded, so you need to carefully review your policy and determine if you have enough coverage to meet your needs. We offer and highly recommend you take the opportunity to sit down with one of our skilled staff members and let us help you with this review!
2. Get your valuables appraised
You might actually have items that are worth a lot more than you think they are! It will be very helpful to have them appraised so you can truly know if you have adequate coverage. An appraisal will help determine if your homeowners policy covers the entire value of your property.
With out professional evaluation, the actual value of some items like collectibles or higher end jewelry can be very difficult to know. We recommend that you have your valuable items appraised on a periodical basis. In the event that some items appreciate in value, additional coverage may be needed.
3. Make an inventory of your home
Coming to a decision about the need to buy additional insurance will be much easier after you know exactly what items you own. Taking stock of possessions by creating an inventory is the only reliable way to do this. Be sure to remember to include items in your garage, basement and attic if you store items there. Make sure you list all items and include copies of receipts or appraisals if you have them This is very helpful should you ever have to file a claim with your insurance company.
4. Know about the crime rate in your area
If your community has high crime rate, it is more likely you will need additional coverage on your valuables. Very often, police departments offer reports of crime statistics publicly. Check out the following website: https://www.crimereports.com/ You might also install an alarm security system, as doing so may qualify you for a homeowners insurance discount, depending on your carrier.
5. Inventory your electronic equipment also
Due to advances in technology, it is now quite common to use electronic equipment to do their jobs and participate in regular private and social interaction. There are now many electronic devices that enhance the quality and ease of our lives. Most people have high-end computers and many other electronic devices the home. You definitely want to be sure that a homeowners policy covers the loss of these important items.
Safeguarding all your valuables – The need to insure valuable items is something you should discuss with your agent whenever you buy a homeowners policy. When you purchase additional coverage for high-cost items, we can help make sure you have a thorough understanding of all the limits and exclusions.
Let us help protect your property with a Home insurance policy and an insurance endorsement on valuable items. Please call us at the Liveoak Agency to discuss your current insurance policies, and any changes that might be necessary!