A widespread misconception is that if you have “Replacement Cost Coverage” on your contents, then all of your possessions would be replaced by your insurance carrier in the event of a loss. Unfortunately, this couldn’t be farther from the truth.
Regardless of the overall policy limit, homeowners policies generally cap limits on “contents/personal property” coverage, and items may be subject to depreciation or excluded altogether. Scheduling your valuables appropriately means broader and more flexible protection.
Typically jewelry, artwork, furs, antique furniture, collectibles, guns and even wine can be scheduled separately, which ensures that if the unthinkable does happen you’ll get reimbursed for its full value. Scheduling items can also expand the coverage, such as eliminating the deductible or providing worldwide coverage, which usually is not included in the homeowners policy.
Insuring your valuables will commonly require an appraisal, but this will depend on the value of the item and carrier. There are coverage options as well, such as Blanket Coverage (a lump sum for any class item) or Itemized Coverage (itemized listing of each individual item). Blanket coverage is usually less expensive but will put a limit on any 1 item. This works for someone who, for example, has $50,000 total in jewelry, but only 1 or 2 pieces that are valued at $10,000 to $20,000 and several $2,000 items. Blanket and itemized coverage options are available for all classes of scheduled items.
Knowing what your homeowner coverage limits and limitations are will save you money and possibly heartache in the event of a loss. Please let us know if you would like more information regarding Valuable Items Coverage.