Imagine pulling into your driveway after a long weekend trip out of town, and your front door is ajar. The house is dark and cold. You enter and find broken glass and empty spaces where your artwork, television or computer once were.
Unfortunately, scenarios like this frequently happen to unsuspecting people. In 2020, there were a reported 6.4 million property crimes.
You can’t predict if or when someone might attempt to steal your valuable items or possessions, but you can anticipate it and take measures to reduce your risk of loss. Let’s go over what you need to know about insuring your valuables:
Homeowners Insurance Protects Most Items
Purchasing a homeowners insurance policy is one smart way to protect your finances in the event of a major loss, damage, or theft. Accidental misfortunes, like losing a wedding ring, are also covered by homeowners insurance policies.
However, an insurance policy isn’t a fool-proof method to protect against all losses. While homeowners insurance will help you financially recover from the loss of, say, your computer, clothing, or furniture, there are limitations.
What is typically covered in homeowner insurance policies?
Generally, you can insure a variety of possessions such as:
- Fine art (such as paintings).
- Collectibles (dolls, sports cards, comic books).
- Musical instruments.
- Medical devices.
- Equipment (such as computers or cameras).
How will insurance cover my valuable items?
First, find out if your current insurance will cover your item. To find out, look for the section describing special coverage limits, which will tell you the maximum dollar amount covered by your policy. If your items would cost more than this amount to replace, talk to your agent about a special personal property floater or an endorsement.
Endorsements are additions to your existing homeowner’s insurance policy. It may be a bit more expensive, but it will boost your coverage to protect your most valuable possessions. To broaden coverage limits, you can also purchase an umbrella insurance policy.
Endorsements are additions to your existing homeowners insurance policy. It may be a little bit more expensive, but it’ll boost your coverage to protect your most valuable possessions. Another option would be to purchase an umbrella insurance policy, which has broader coverage limits.
Endorsements or umbrella policies typically cover high-end jewelry (including engagement rings), artwork, furs, designer clothing, or fine china or cutlery. However, there are other items that may require a special annex or endorsement; if your policy has a lower coverage limit for electronics, for example, you may consider adding your laptop to this policy extension.
Get a Unique Policy for Your Classic Cars
If your most valuable possession is an antique car, you will need a different form of insurance. According to The Balance, classic and antique vehicles are insured for the agreed value, generally determined by an appraiser. Keep in mind that the agreed value is much different than the “actual cash value” or the “stated value.” These policies have special ownership requirements, like how to store the car and how many miles you can put on it.