We all have some possessions that hold a deep meaning to us, whether it’s a piece of jewelry passed down from generations past or an extensive (and expensive) vinyl collection.

You might not have previously considered it, but you need to insure your valuables. Let’s go over what you need to know about insuring your valuables:

Your Homeowners Policy Doesn’t Cover Possessions

Having a homeowners or renters insurance policy is a must, and at first glance, you likely think it covers every possession inside your residence.

You couldn’t be more wrong.

Virtually all renters or homeowners insurance policies don’t offer complete protection if personal possessions are damaged, lost or stolen. In other instances, you may have to pay a sizable deduction to protect your valuables.

Those policies can be more of a hassle, especially if you find out a valuable isn’t covered until after it’s been damaged, stolen or lost. Those disasters often occur without warning, but by insuring valuables from unforeseen circumstances, you can protect yourself and replace or fix items if necessary.

Items That Can Be Covered

Generally, you can insure a variety of possessions such as:

• Fine art (such as paintings).
• Jewelry.
• Collectibles (dolls, sports cards, comic books).
• Musical instruments.
• Medical devices.
• Coins.
• Furs.
• Silverware.
• Equipment (such as computers or cameras).

With Valentine’s Day behind us, consider insuring that special gift you received from your loved one. You can’t leave anything to chance and having the reassurance that a valuable possession is protected will help you enjoy that special gift even more.

Insurance Specifics

Now that you know which items can be covered, you should understand what you’re getting when you insure valuables.

Let’s go over what you’ll find in a typical insurance plan:

WORLDWIDE COVERAGE

If you’re traveling away from home, your plan covers valuables like electronics and jewelry. In most cases, fine art and other valuables specifically found in your home are only covered in the U.S.

DEDUCTIBLES

Most insurance plans covering valuables don’t have a deductible, though they’re available if you wish. For example, you may need to pay a small deductible if you break a valuable by certain perils (as determined by the insurer).

REPLACEMENT COST COVERAGE

Replacement cost coverage is the amount of money it would require to either repair or replace a valuable with one of same quality and kind. As you might imagine, replacing certain possessions may be easier said than done, but replacement cost coverage can you provide with the money to purchase a similar item without deduction for depreciation.

Optional Coverage Options

If you wish, you can tack on optional coverage options to the main policy covering valuables. These optional items can include:

INFLATION COVERAGE

Coverage amount on a possession is automatically adjusted according to the Consumer Product inflation index. Keep in mind you’ll need to have professionals reappraise items regularly.

WEDDING PRESENT COVERAGE

If you’ve recently been married, or plan to tie the knot in 2017, wedding present coverage will protect gifts before and up to 90 days after your big day. However, this coverage is only temporary.

BROAD PAIR AND SET COVERAGE

When you own a jewelry set, such as a pair of earrings, you can insure that set with broad pair and set coverage.

We all have at least one valuable item in our possession. Whether it’s new electronics to jewelry or art passed down from older generations, you can’t risk anything happening to these valuables.

Written by Bank Midwest

2020-07-16 15:18:14