If you have homeowners insurance, most of your belongings are protected. But what about cherished possessions like an engagement ring, fine art or other valuables in your home? A standard homeowners policy has limits on how much it will cover. Valuables insurance offers additional coverage for your high-value items.
There are two types of valuables insurance plans: scheduled coverage for individual items, or blanket coverage for an entire category of valuables.
This insures items individually with their own coverage in addition to your home insurance policy. It often requires appraisal of possessions. Scheduled is better for larger items, and covers losses of any type, including accidental losses, which homeowners insurance doesn’t cover in the event of a claim. The value is predetermined so you know how much you would receive for the item.
This option covers each category of valuables, such as electronics, jewelry, art or collectibles. It does not require listing. Instead, you decide how much coverage you need per category, and you receive coverage for that amount with a limit per individual item.
Choosing the Right Amount of Coverage
When deciding how much coverage you need, be sure to keep these things in mind:
- An appraisal of the current value of your valuables, such as the latest gold prices
- List of your current inventory of assets, including inheritances
- Method of storage
- Age and condition of the valuable