You schedule many things in your life, from doctor’s appointments to business meetings, but you probably don’t think about scheduling your personal property. This is an add-on to your basic homeowner’s policy that many people don’t even think they need. In an effort to protect your more valuable possessions, we’ll explain what separates this concept from your typical insurance policy.
Homeowner’s Insurance: The Basics
Most people secure a standard homeowner’s policy before they even move in to provide coverage not only for their house, but also for the items inside. In the event of a loss from weather-related damages, fire, or even theft, this allows you to replace and/or rebuild without having to pay for everything on your own. In an effort to keep this insurance affordable, though, there are limitations.
While your most expensive items are covered under the standard policy, how much coverage you’ll actually get will vary. For example, if you have a diamond ring in your possession worth $5,000 and it gets stolen, your insurance company isn’t automatically going to reimburse you the $5,000. Most policies have a liability limit (also known as a sub-limit) for this sort of thing for right around $1,500. That means, regardless of the value of your ring, they’re not going to cover more than $1,500 of the loss. Thus, whether you have a few or a lot of valuable possessions, it’s worth looking into some different options to make sure they’re protected.
Scheduling Personal Property
By scheduling individual items, you’re basically purchasing an additional “floater” policy just to insure that particular thing. Though it’s more expensive than a standard policy, it also offers broader protection—apart from just the reimbursement value. We mentioned a few events that could be covered earlier (i.e. fire, weather, theft), but many accidental losses are not included in a typical homeowner’s policy. For instance, it you dropped your wedding ring down the drain and were unable to retrieve it, that wouldn’t even be covered at the sub-limit for most policies.
While not necessary all of your possessions, it’s a good idea to look into scheduling some of the following:
- Jewelry
- Furs
- Art
- Antiques
- Firearms
- Collections
- Expensive technology
The first step to scheduling is always an appraisal. You need to know how much its worth before you or your insurance agent can accurately insure it. Since the value of some of these objects is subjective and can change over time, it’s a good idea to have them appraised periodically. After all, you don’t want to be paying for more insurance than you can claim based on the current market value—nor do you want to be drastically underinsured in the event of a spike.
If you have questions about whether or not there are items in your home that should be scheduled, you can always ask us! By understanding your current homeowner’s policy, we can help you identify gaps and make recommendations based on your personal situation. Give us a call today to start!
