Why Homeowners Coverage Is Not Enough

Even the most comprehensive homeowner’s policy is limited in its protection of valuable articles and collections. If you rely solely on your homeowner’s policy for coverage, you may find you don’t have enough insurance to replace your precious valuables such as jewelry, silver, crystal, fine art, antiques, furs, guns, or unique collectibles that may be lost, stolen, or damaged. When evaluating your need for additional valuable articles insurance, consider these typical limitations on homeowner’s policies:

• Coverage for breakage is generally excluded.
• Items that are misplaced or lost may not be covered.
• A deductible will most likely apply to your loss.
• The loss settlement for items of rarity or antiquity may be limited.
• Typically, coverage for many types of valuables is limited to $1,000 to $5,000.

Valuable Articles Insurance Options

By itemizing — also called “scheduling” — individual items as part of your valuable articles policy, you and your insurer agree on their value before a loss happens. However, you don’t have to itemize all your valuables. Usually you can also obtain “blanket” coverage. Typically, there are per-item limits for blanket valuable articles insurance.

The Benefits of Listing Jewelry and Valuables on a Schedule

Not everyone needs valuable articles insurance. However, if you own jewelry or other valuables, you should consider this extra coverage. By scheduling your valuable articles, you can avoid coverage limitations and may also receive:

• 100% of the insured value in a cash settlement for a covered total loss, and if you chose not to, you won’t be required to repair or replace scheduled items.
• A market value settlement clause, whereby you may also receive up to 150 percent of the insured amount of an item designated on the policy if it costs more to replace it at the time of loss.
• Worldwide coverage.
• Coverage for breakage of fragile items.
• Coverage for newly acquired items.

If something happened to your valuable possessions, your homeowner’s policy may only cover the loss minimally, or not at all. That’s why it’s a good idea to create an inventory, establish the value of your possessions and then protect them with a valuable articles policy.