From jewelry and antiques to rare collections, there are certain items you may own that you can’t imagine losing. These items could be possessions you deeply cherish; collections in which you have invested a lot of time, money, and passion; or something that would be impossible to replace due to its cost. In order to ensure your valuables are fully covered in case of a loss, you may need to consider “scheduled personal property” coverage.
Why You Need Scheduled Personal Property
While your homeowners policy may include coverage for personal items and valuables, most policies limit the dollar amount of coverage for loss of these items. If the value of the item exceeds the limit of coverage on your policy, there is no coverage for the difference. So if you had to file a claim involving your $3,000 wedding ring and your policy limit was $2,000 on jewelry, you would be left to cover the remaining $1,000. In addition, there are certain risks that your homeowners policy will not cover, such as accidental loss.
What is Covered
Scheduled personal property can be purchased as a separate policy or as an endorsement to your current homeowners policy. It provides higher limits and coverage for additional risks that are not covered in your normal policy. Items are insured for their appraised value, and the coverage is specific to the high value items that you own.
Examples of high value items that may need additional coverage include the following:
- Electronic equipment
- Musical instruments
- Fine art, rugs, and dinnerware
- Rare or one-of-a-kind items
- Autographed items
- Collections (wine, coins, books, etc.)
Covered perils on a scheduled personal property policy may include:
- Smoke damage
- Accidental damage
- Accidental loss
- Mysterious disappearance
Getting Started with Scheduled Personal Property
Look around your home and make a list of your cherished possessions and high value items. Once you have taken an inventory, talk with your insurance agent to determine if your current policy provides the coverage you need. After you have identified items that need additional coverage, you will need to have those items appraised. Adding scheduled personal property coverage is a simple process once you have a professional appraisal.
It is a good idea to update your home inventory once a year. As you acquire additional valuables over time, make sure to have them added to your scheduled personal property endorsement. Keep receipts and appraisals in a safe location. Click here to see our tips on digitizing important documents.