As a homeowner, you likely have valuable items that hold both financial and sentimental worth, from family heirlooms and expensive jewelry to collectibles and firearms. While your standard homeowners insurance policy may cover some of these items, the coverage may be limited or inadequate if they aren’t properly insured. Ensuring that your high-value possessions are accounted for and covered is crucial to protecting them in case of theft, damage, or loss.
Here’s why it’s essential to add valuable items to your home inventory and possibly consider additional coverage:
The Importance of a Home Inventory
A home inventory is a comprehensive list of everything you own, including valuable items. Having an updated inventory is essential when filing an insurance claim after a loss. It acts as proof of ownership and helps your insurance company determine the accurate value of any lost or damaged property.
Begin by cataloging your high-value items, capturing clear photos, and documenting key information such as the purchase price, date of purchase, and any appraisals you’ve received. For a detailed guide on creating your own home inventory, check out this article.
Why Standard Coverage May Fall Short for Valuables
Your standard homeowners policy typically provides coverage for personal property, but it may have limitations for certain items. High-value possessions such as jewelry, collectibles, firearms, and antiques are often subject to lower coverage limits. This helps keep premiums affordable for those without high-value belongings but may leave gaps for those who do.
For instance, many policies limit coverage for jewelry theft to $2,000, which might fall short of replacing an engagement ring worth several thousand dollars or a cherished family heirloom. Additionally, any claim for these items would be subject to your deductible, meaning you’d need to pay that amount out of pocket before the coverage kicks in.
What May Be Considered a High-Value Item
When determining if your homeowners insurance personal property coverage is adequate, you’ll want to account for any high-value items and what their replacement value is. Ideally, this is accomplished by your home inventory. Some items that you’ll want to consider due to their high value and the possible special limits of liability are:
- Jewelry, furs, and watches
- Art and antiques
- Silverware and goldware
- Coin or stamp collections
- Firearms and firearm attachments
Adding Special Coverage for High-Value Items
To ensure your valuable items are fully protected, you may need to purchase additional coverage. Here are some options:
Raise Your Coverage Limits: If your coverage limits are close to the amount you need, you could raise your limits to make your coverage more appropriate. This will increase your premium, but it will also raise the payout you receive in the event of a covered loss. Keep in mind, you’ll still need to pay your homeowners insurance deductible with this option.
Scheduled Personal Property Coverage: Scheduling your high-value items allows you to list specific high-value items on a policy, ensuring they’re covered for their replacement cost value instead of the standard policy’s liability limits. It supplements your basic homeowners insurance and typically comes with a lower deductible. A professional appraisal is usually required to assess the value of the items before they can be scheduled.
Adding valuable items to your home inventory and updating your insurance coverage is essential to ensure that your prized possessions are properly protected. Meet with a Farm Bureau Insurance agent today to discuss how you can enhance your coverage to protect your most valuable assets.
Disclaimer: The information included here is designed for informational purposes only. It is not legal, tax, financial or any other sort of advice, nor is it a substitute for such advice. The information may not apply to your specific situation. We have tried to make sure the information is accurate, but it could be outdated or even inaccurate in parts.
