If you have a homeowners or renters insurance policy, many people assume that their valuables are covered by their policy. That is true, but there are limits and you may want to adjust your coverage or even purchase a separate policy in some cases.
A standard home insurance or renters’ policy uses a fixed limit to insure personal property. For example, maybe your policy insures your belongings for up to $100,000. For many households, that might seem like enough coverage. However, sub-limits often apply to certain types of items. For instance, jewelry might have a sub-limit of $1,500. Bear in mind that these limits are just examples. But now, the coverage may seem a bit light for some households, maybe well below the amount of coverage you need.
Sub-limits can affect other types of valuables as well. Watches, furs, artwork, and even some electronics may have sub-limits that reduce the amount of coverage you have for these items. Insurers structure policies this way to keep costs lower for everyone. Not everyone has valuables so building higher coverage for valuables into policies would mean that some would be paying for coverage they would not need. Instead, it is more efficient to customize coverage, adding more coverage for valuables when needed.
In many cases, you can add specific valuables to your policy as scheduled items. What is the scheduled coverage? Scheduled coverage is a way to specifically insure valuables. If you have a $5,000 ring but your policy only covers losses up to $1,500 for jewellery, there’s a big gap in coverage. Most home insurance policies have similar structures which limit coverage for valuables to help keep costs lower for everyone. However, if you need better coverage, it’s usually available in the form of scheduled coverage. Some insurers also offer a personal articles policy, which serves a similar function, it can specifically insure valuable items.
In addition to increasing the coverage for certain valuable items, specifically insuring these items may also bring other advantages, such as lower deductibles — or even no deductible — and coverage for a broader range of risks.
If you have not reviewed your coverage lately, now is a great time to explore your coverage options for valuables. Just reach out to your broker to schedule a review and to learn more.