It seems like over the last few months, several of my friends have gotten engaged. Since we’re in the midst of engagement season, I’m sure you can relate. After the initial celebrations and showing off of the engagement rings, the last thing on these soon-to-be brides’ minds is protecting that valuable item with insurance. Although we’d like to think we’re all careful people and never misplace anything, chances are that ring is going to be placed on a bathroom counter and forgotten about or some other mishap will occur.
If you have homeowners or renters insurance, it is a common assumption to think that your valuable items like jewelry, watches, silverware, cash, etc. are covered automatically under your “Personal Property Limit”. However, the standard homeowners insurance policy places limits on specific items depending on how the item was damaged or destroyed. For example, if that engagement ring were stolen out of your home, a standard policy would limit the total amount you can collect to $1,500. Chances are that won’t be enough to cover the entire value of the engagement ring and not only would you have an unhappy fiancé but you’d also be out the extra cash it takes to cover the difference for a new ring.
Here are a few more examples of limitations on a standard homeowners insurance policy:
Money – limited to $200
Jewelry, watches, furs – limited to $1,500 only when stolen, all other causes of loss covered up to valued/insured amount
Business property – limited to $1,500
Portable electronic equipment such as laptops or TVs – limited to $1,500
Firearms and related equipment – limited to $2,500 only when stolen, all other causes of loss covered up to valued/insured amount
The good news is you can increase these limits or schedule the items on your insurance policy. By scheduling your valuables, you are able to receive an agreed value for your item if something were to happen to it. That means you must have your item appraised or valued and it must be kept current. You will pay an additional premium to schedule your items based on the value and type of item being insured.
When you purchase homeowners insurance, you’re able to have peace of mind knowing your home and valuables are covered. Take the extra step in ensuring peace of mind by calling Steven R. Nelson Insurance Agency at 559-591-7556 to review your insurance policies. We can help you better protect what matters most.