FRIDAY, MARCH 31, 2017
A few weeks ago I received a call from a client whose mother's home had just been burglarized and needed advice on what was covered and what was not. When the mother's policy was first written her son and I had discussed the issue of scheduled property or valuable item insurance. At that time he had made the decision to write the policy with a carrier that offered the highest available standard limits on individual personal items and the aggregate coverage for those types of items. As an example the policy we decided on provided coverage of $2500 for any one item of jewelry and up to $7500 for the aggregate loss. At that time this seemed to be the most cost effective way to provide for a level of protection the client felt comfortable with. At the time that might have been the case, but things change. Over years jewelry and particularly gem stones and semi-precious stones appreciate and without regular appraisal's their values can change dramatically. Coverage that was adequate 5, 10 or 15 years ago may be totally inadequate today. In this particular situation the client's mother had inherited an expensive diamond ring form her sister who had passed away. There had never been a proper appraisal and the ring's current value could only be guessed at. Very simply, there was not enough coverage for the full value of the inherited ring.
Scheduled Property or as it's also called, Valuable Items coverage, supplements coverage for possessions of higher monetary value, such as a diamond engagement ring, your grandfather's pocket watch, artwork, or a valuable collection. valuable collection. While most homeowners policies have limits on the dollar amount and type of loss that can be recovered, Valuable Item coverage will provide the protection you need for your most valuable possessions in the event of loss through theft, accident or natural disaster. Optional add-on coverage to the homeowners policy may be available to enhance coverage by providing higher limits (up to as high as $50,000 in some cases, but limited to $10,000 per item) and expanded protection for special property. This usually provides most homeowners with enough coverage. However, if you own extremely valuable items, this still may not be enough coverage. For example, if you own a diamond ring valued over $10,000 or a collection of fine arts valued over $50,000, you need more protection and should consider buying a separate Scheduled Property or Valuable Items policy.
Give your StateOne Insurance Agent a call to discuss any questions you might have about this important and often over-looked protection. Remember we're here to help and we want to be your Agent of Choice.