The holidays are over, but the presents you received should last for years to come. Whether you got the latest electronic gizmos or gadgets, jewelry or gems, computers or collectibles, furs or firearms, boats or bank notes, these are all expensive valuables that may cost a lot to replace if they are damaged, lost or stolen.
Most homeowners policies typically limit how much you can claim and sometimes won’t replace the item depending on how the loss occurred. Sometimes there are exclusions or restrictions on personal property.
Here are some common scenarios. Quiz yourself to see if you know what’s covered.
Scenario 1: Your son’s laptop was stolen while he nodded off at the airport. Is that covered? Yes, but you must pay your deductible.
Scenario 2: Your husband’s new iPad falls out of the car into a mud puddle as he exits the vehicle. Is that covered? Probably not, as many policies have exclusions for neglect.
Scenario 3: Your wife lost the setting on her engagement ring at the gym. Will your policy replace it? It depends. Most unendorsed homeowners policies do not provide coverage for personal property that is lost or broken. Most often, jewelry, watches and furs fall into special categories with specific limits that apply to that classification; and many policies limit the amount of coverage for loss due to theft of items such as jewelry, furs and firearms. It’s best to schedule these items to have them insured at full value.
Scenario 4: You had a theft in your home and more than $10,000 worth of jewelry was stolen. Is that covered? Well, only a specific dollar amount will be covered, and there is probably a per item limit. Be aware that some policies may require receipts, pictures or an appraisal for each piece of jewelry you report stolen. It’s important you know the facts about your own policy. Again, jewelry should be scheduled to be fully insured.
Exclusions and restrictions may seem confusing, but they don’t have to be. Just jot down the valuables your family received as gifts – the ones that you would want covered in case of loss, theft or damage – and call us to find out exactly what kind of coverage your policy includes. We’re happy to give you pointers, explain possible scenarios to consider and answer any questions you have. You may be able to purchase an endorsement that will provide the coverage you want.
We’ll also provide you with tips on how to create a home inventory with pictures and receipts. You should store that information in a location other than the home (even in an email) so it can be easily located if your computer is ever damaged or stolen.
Either way, make a resolution to ensure that your family’s new valuables are protected. If ever there is an issue, you won’t regret having taken the time to ask questions before a loss occurs. Give us a call anytime you would like to review your coverage, make policy changes, or with any questions that you may have.