You may think that a homeowners insurance policy provides adequate coverage for all your valuables, but policies may provide limited or no coverage for certain items — including generally expensive items — that are damaged or stolen.
For example, many homeowners policies generally have a $1,000 or $1,500 sub-limit coverage amount for jewelry if the loss is due to theft. Such limits are in place to help keep homeowners policies affordable. However, if jewelry valued at $2,000 is stolen from your home and you have a $1,000 policy limit, you can only receive $1,000 from your insurer to replace the missing items.
That is when an Scheduled Property insurance endorsement (sometimes called a rider) can provide increased coverage for your possessions. For an additional premium, this coverage can help protect you from the loss of high-end valuables such as jewelry, furs, antiques, artwork, musical instuments and collectibles.
The value of some items, such as collectibles or jewelry, may be difficult to determine without professional assistance from a licensed appraiser. Also when it comes to jewelry, especially precious metals and gemstones, the value almost always increases over time. It may be necessary to have your valuables reappraised periodically. If they increase in value, you may need additional coverage.
You may not be able to make a decision about whether to buy additional coverage until you know exactly what you own. You may want to take stock of your possessions by creating an inventory. Do not forget to check your garage, or attic for stored valuables, such as antiques and coin collections.
Be sure to list all items of value and include copies of receipts or appraisals when possible. This may help you if you ever need to file a claim with your insurance carrier.