If you think your homeowners insurance policy covers all your valuables, you’re mistaken. Most policies exclude coverage for certain items or limit it. These limits are put in place to keep homeowners policies affordable.
These limits or exclusions typically apply to high end items that are stolen or damaged, such as jewelry, watches, art, purses, etc. For instance, most policies have a coverage amount of $1,000 or $1,500 for stolen jewelry. Therefore, if you have a piece of jewelry worth $2,000 stolen and your policy limit is $1,000, you’ll only receive that amount from your insurer to replace it.
Luckily for you, there’s an add-on that increases your coverage for valuable items. If you’re unsure if you need extra coverage for your valuables, here’s some tips to make an informed decision.
Tips for Protecting Your Valuables
Read Your Policy Thoroughly
Note that an insurance policy is an agreement between you and your insurer. It includes all the important details regarding your policy’s coverage and limits. Specifically, it will include how much they’ll compensate you if certain valuables are stolen or damaged.
Keep in mind that not all valuables are covered by the policy. Therefore, you need to carefully review it to find out whether your current coverage is enough. Discuss the limits and policy structure with your insurance agent.
Get Your Valuables Appraised
Your valuables may be worth more than you think. Therefore, it’s best to have your valuables appraised so you know how much coverage you’ll need.
Note that it’s difficult to estimate the value of some items without a professional’s help. Also, it’s important to have your items reappraised periodically since the value can fluctuate. If an item increases in value, you may have to buy additional coverage.
It’s challenging to decide whether you should get additional coverage if you don’t know what all you have. That’s why you must take inventory and make note of your valuables. Make sure you check your attic, basement, and garage in case there’s any valuables hidden such as coins and antiques.
Check the Crime Rate of Your Neighborhood
Do you live in a neighborhood that has a high crime rate?
If yes, then you might need additional coverage to keep your valuables protected and safe. Check with the local police department to see if they have any information on crime in your area.
All in all, insuring your valuables is necessary, but it’s wise to discuss coverage with your insurance agent. They’ll guide you on whether you need added coverage for your valuables or not.