Insuring Your Valuables

This is the time of year for setting goals – updating your insurance coverage should be one of them. Why? Well, your homeowner’s or renter’s policy may not provide adequate coverage for your valuables. If you review your policy annually, you can look for any gaps in coverage. This post explains some of the options related to insuring your valuables.

Why Should You Insure Your Valuables?

The limited coverage provided in your homeowners’ policy may not cover your valuables in the event of a loss. Generally, when an agent goes over your policy, they don’t know everything about your life. For example, let’s say you just got engaged, the agent doesn’t know you have a ring. Your engagement ring is an expensive item and is not listed in the policy unless you ask or your agent asks you.

Adding an endorsement or floater policy to your coverage can give you peace of mind knowing you will be reimbursed.

Coverage Options for Insuring Your Valuables

Standard homeowners, condominiums, or renters insurance policies include a limited amount of coverage for jewelry and other valuable items. To properly protect certain types of valuables, additional coverage is available through a policy endorsement or floater.

Endorsements

Endorsements are additions to your homeowners, condominium, or renters insurance policy that change or add to the policy’s provisions. There are three things an endorsement can do: cover property that is not on a basic homeowners policy, extend the number of perils, or increase the amount paid for a covered loss. Once you and an agent decide what is valued, the items get “scheduled” on a list. This list includes a brief description and the item’s dollar value.

To determine each item’s value, an appraisal is typically required. This will help ensure that the amount of insurance is enough to cover the repair, replacement, or cash payment of the item. Keep in mind that this can only happen in the event of a covered loss.

Floaters

A floater covers items that are easy to move. It may be used to schedule your valuable property that is based on special limits.

Once you have an endorsement or floater, it is important to review your policy’s coverage limits to minimize the likelihood of being underinsured. Without reviewing, things like outdated appraisals and inadequate limits of insurance can leave you underinsured.

The Cost of Coverage for Insuring Your Valuables

The cost of coverage varies upon the item, but typically the fee is small. Our team of professionals can provide you with more information about coverage. They can also walk you through what different items you may want to schedule.

Before a thief steals your possessions or they become lost, email our team at team@thamsagency.com . We can help you protect the things you value most.