Why Valuable Item Insurance Is Important

Homeowner insurance protects more than just your house. Valuable item insurance included in your policy can be used to insure your valuables such as jewelry, art, prized collections or antiques that can mean just as much to you as the home itself.

If you own a home or you are renting a home or apartment then things such as furs, jewelry, silver, gun or coin collections or antiques, can be covered on your homeowners insurance policy to protect against damage or theft. However, you need to realize that your homeowners policy only protects you up to a limit. If your valuables are worth more than the policy limits, you might find yourself out of luck on replacing them in the event of a loss.

Consider the following two examples to see when your policy coverage can come up short, and when it won’t cover you at all:

valuable item insurance

 

  • EXAMPLE 1: Let’s take your diamond engagement ring which is appraised at being worth $7,500. Your homeowners insurance policy may cover up to $2,500, which is subject to your $1000 deductible. Therefore, if your ring was stolen, you would get $1500. Not much for a ring worth $7500!
  • EXAMPLE 2:You notice the diamond in your engagement ring is missing. Consider what happened to the ring: Did it go down the drain? Was it baked in the meatloaf that you just popped in the oven? Or did you lose it at work or on the way home from work? Who knows? This is known as mysterious disappearance and it is not a covered loss under your homeowners policy, meaning your claim to replace the cost of the ring would be denied.

 

When you are ready to purchase a homeowner’s insurance policy, consider whether or not it is worth it to include your valuable items and antiques in your insurance protection. Click here to learn more about available policy limits.