Do you have the right coverage for your valuables?

Do you have the right coverage for your valuables?

December 28, 2022

Jewelry  Electronics  Golf clubs  Fine art  Wine  . We all have things that we collect or buy that are totally worth the splurge. Some of it might be quite valuable and require special insurance coverage. After taking inventory of your stuff, you may have more valuables than you even realize. You can’t put a price on the sentimental value of these items. But you can keep them financially protected if they’re lost, stolen or damaged if they are properly insured.   

Most home insurance policies provide some coverage, but they may not cover the full value of your more expensive belongings. You may need to buy extra coverage. That’s where valuable items coverage can help.  

You may decide to insure each item separately or a whole collection. A Personal Articles Floater (PAF) policy is used to cover scheduled (individually listed) items. In some cases, you can get blanket coverage where you assign a coverage limit for a specific category. For example, $50,000 blanket jewelry coverage. Note, blanket coverage may have a per-item limit. Please contact your agent for more information.  PAF policies generally cover you for all risks like theft, mysterious disappearance, and accidental direct physical damage. As with all policies, there are limitations and exclusions.  

PAF policies typically are not subject to a deductible and give you an agreed value which is the best valuation in a claim. Agreed value is the value agreed upon by you and the insurance company. An appraisal or receipt is used to determine the value. In the event of a loss, the agreed value is the amount you would receive. For comparison, homeowners policies are valued at actual cash value, or replacement cost if an endorsement is present. Deductibles and loss valuations may vary by carrier so, please contact your agent for more information. 

Another option would be to add a valuables coverage endorsement to your homeowners insurance. Valuable endorsement can offer expanded protection and higher limits on certain types of valuables.  A valuables endorsement provides blanket coverage. 

So now that you know you want your valuable covered, what’s next? There are a few steps to take:  

Step 1: Review your current home policy to see what protection you have.  

Step 2: Make a list of the valuable items you want to protect.  

Step 3. Assign a value to each of them. If you’re not sure, consider having the items appraised. (some insurance carriers will require this)  

Step 4. Call us so we can discuss with you the right coverage and provide a quote for coverage.   

This blog post is not offered, and should not be relied on, as insurance advice. You should consult an insurance agent for advice in specific situations.