Whether you live in a condo, a house, or you’re renting the place you call home, your property insurance is an important part of your financial stability. Regardless of whether you own the place you call home; an important part of your property insurance is ensuring you have adequate coverage for the contents.
Home, condo, and tenants’ insurance all have specific limits to the amount of money they will pay out for categories of items in the event of a loss. If you have possessions that are valued higher than that coverage limit, then you could be left holding the bag if there is a total loss. For this reason, insurance companies have something called scheduling, which allows you to name specific items on your property insurance policy that have an increased coverage limit.
As an example, let's say you have $100,000 worth of contents coverage on your home insurance policy and you have a total loss. Your insurance policy will have specific limits for every category of item. Let's say you had recently purchased a $12,000 engagement ring for your fiancé and an $8,000 watch for yourself. Unfortunately, due to the total loss, both items were lost or destroyed. Although you have $100,000 for contents coverage which should be more than enough to cover the total damages, there is a coverage limit of $10,000 on your home insurance policy for jewelry. This meant that the insurance company only paid out $10,000 for your claim, even though it would have cost $20,000.
That is why companies allow you to schedule specific high value items on your property insurance. For a small additional fee, you can get insurance coverage beyond the designated limits for your personal property.
What are the 10 things you might want to name on your insurance?
- Jewelry
- High value art
- Antiques
- Musical instruments
- utility trailers
- Bicycles
- Sporting equipment
- Bags and luggage
- Coins or banknotes
- Collections
1. Jewelry
The coverage limits on jewelry vary from company to company, but you can usually expect a limit between $3,000 and $10,000 for jewelry. It is important to keep in mind that this includes all of the jewelry in the home. This includes but is not limited to:
- Watches
- Engagement and wedding rings
- Necklaces
- Bracelets
- Earrings
- Even replacement gems
The total value of jewelry can add up quickly. If you're ever unsure if you've got the right coverage, don't hesitate to call your broker, they can help.
2. Art
High value art may also be subject to special limits. If you're looking to insure a high value art collection, you may need to get insurance through a specialty provider. Insurance brokerages will likely have a relationship with specialty companies and will be able to get you the coverage you need.
3. Antiques
Antiques can be more difficult to find coverage for simply due to the rarity of certain items. That being stated, most companies can get you financial coverage for your belongings if you have an appraisal for the item or collection. Talk to your broker about what kind of information you need to get adequate coverage on your policy.
4. Musical Instruments
Musical instruments on their own don't usually go over the standard property insurance coverage limits, but certain pieces or collections can cost significantly more than the coverage limits. Depending on your provider and your policy, you could have between $1,000 - $5,000 worth of coverage for musical instruments. Keep in mind, that is the maximum an insurance company will pay out in a total loss.
If you have rare, expensive, or many instruments, you may want to consider scheduling them on your property insurance policy. As an example, a full sized harp can easily run $5,000 - $10,000 and beyond. Guitar collections and band equipment can all be insured together as well.
5. Utility Trailers
One of the most commonly scheduled items on a property insurance policy is a utility trailer. Most insurance policies offer between $2,000 - $3,000 worth of coverage as the special limit. If you have a trailer that is worth more than that, you could be out serious money in the event of total loss. If you schedule a utility trailer on your property insurance, it also protects against theft.
6. Bicycles
When thinking about theft, bicycles are a common target. For that very reason, it may be a good idea to schedule your household's bicycles. Coverage can vary by company and some offer up to $3,000 per bicycle that is lost, and some offer up to $5,000 for all bicycles. If you have a high value bicycle or an electric bicycle you're looking to get coverage for, it may be a good idea to schedule it on your property insurance policy.
7. Sporting Equipment
Sporting equipment can vary wildly in price depending on which sport the equipment is for. Basketball equipment costs a fraction of what you could expect to pay for hockey, golf, or archery equipment. If you play a sport with high cost equipment, it may be worthwhile getting it covered. Coverage limits for sporting equipment range from $1,000 - $3,000.
8. Bags and Luggage
Many insurance companies offer up to a $10,000 limit for luggage and bags. While this limit may seem high, in the case of a total loss, the full replacement cost of all of your bags can add up quickly. If you have a few high value bags, you may want to talk to your insurance broker to ensure you have the protection you need.
9. Coins and Banknotes
Coins, banknotes, and other collectible tender can be complicated to insure. This stems from the fact that these types of collections have three potential values.
- The actual cash value of the tender
- The historical or collectible value
- The commodity value (silver, gold, other precious metals)
For this reason, it's important to have an appraisal of your collection in order to properly insure it. Most companies only offer $1,000 worth of coverage for these types of collections.
10. Collections
Last but certainly not least is collections. Although we had previously touched on different types of collections in the other parts of this article, it should be noted that many collections can be scheduled on an insurance policy. This can include:
- Stamps
- Cards
- Comic books
- Wine or other beverages
- Others
If you have a collection that you'd like to get insured, talk to your insurance broker for the right advice.
How do You Schedule Something On Your Home Insurance?
In order to name something on your home insurance, you'll need a bill of sale indicating the value of the item or an appraisal that is no more than five years old. Talk to your insurance broker or agent about which would be better for your specific items. They may request copies of the documents along with photos of the item you're looking to schedule.
If you need help with your property insurance, Armour is here to help. Give us a call at the link below.
