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You bought it because you loved it. Whether it's a precious piece of jewelry, a painting, sculpture, antiques, rare coins or memorabilia, it's important to protect the possessions you cherish the most.   Homeowners policies have limitations on the protection provided for valuable items. This is where personal articles insurance (also known as a valuable articles insurance policy or an insurance rider) can help.

Five things you may not know about valuable articles insurance

Homeowners coverage is limited for some valuables.

Your homeowners policy will protect the majority of your personal possessions (in fact, the personal property coverage on your homeowners policy is usually 70-75% of your dwelling coverage). But your high-value items like jewelry, artwork, silver and antiques are most likely not fully covered. Of course, if we’re talking about something that’s less than $500 in value, you’re probably sufficiently covered. Chances are you’ve invested time, passion and money into more than just one treasured possession, so what happens if your favorite item gets lost or stolen? A good personal articles insurance policy will protect you.

Personal articles insurance covers more than you may think.

• Computer Equipment
• Sports Equipment  (such as bicycles, golf clubs)
• Collectibles
• Jewelry
• Musical Instruments
• Furs
• Cameras
• Silverware/Goldware
• Fine Art (like oriental rugs and paintings)

You can insure your valuables for their actual worth.

You should insure your valuables in advance, before anything happens.  Dollar for dollar, an insurance value must be settled upon. If you still have the sales receipt, it can be based on what you paid for the item. Otherwise, it will have to rely on the item’s appraised value.  Keep in mind that most insurance companies require an appraisal be done within the last three to five years.

You have choices when it comes to your personal property coverage.

If your valuable items aren’t covered completely because they’ve fallen outside of the specific item coverage limits on your homeowners policy, don’t worry. You can customize your policy with additional coverage options to protect what you care about most. Available options include jewelry insurance, or coverage known as scheduled personal property (SPP), and extended coverage on specific items or collections.

With each policy, some things are covered, and some things are not.

Personal Property Protection

• This kind of coverage is subject to your deductible, it applies to the personal property used or owned by the named insured worldwide (restrictions apply).
• Except where limited or excluded in your policy, this covers accidental and sudden direct physical loss caused by a named peril
• If the property is located or stored anywhere other than your primary home, your personal property coverage is limited to a smaller percentage of your homeowners dwelling coverage that regular personal property.
• A resident employee or guest’s personal property is covered while that property is in the residence where the named insured lives.

Extended Coverage on Jewelry, Watches and Furs

• When added onto the policy, this coverage applies to, gold, watches, platinum, jewelry, precious and semi-precious stones, gems and furs, and is subject to the policy’s deductible.
• While there are some specified exclusions, this extended coverage covers accidental and sudden direct physical loss, such as mysterious disappearance.
• There are coverage limitations based on the number of occurrences as well as a per-item limit.
• Typically, the amount of coverage isn’t added to amount of personal property coverage.
• You may choose blanket or item coverage.  Item coverage is written for a set dollar amount and is typically for high-value pieces like a wedding ring. Blanket coverage lets you insure a specific category like gold jewelry for an overall dollar amount.  This is what you want if you have many items of lesser values (e.g. $25,000 of gold jewelry with no one piece worth over $2500). 

Scheduled Personal Property (SPP) Endorsement

• This coverage is outside the limit of personal property on the rest of your policy
• Coverage must be 100% of current market value; this insures items against all risks.  A recent appraisal or sales receipt is usually required to establish the item’s value.
• While restrictions and limits may apply, this covers damage to or loss of an insured person’s personal property as scheduled for all risks, including direct physical loss worldwide and mysterious disappearance. But coverage on firearms, fine arts and business personal property is limited to within the United States and Canada
• You may write this policy with higher deductibles, and it can be different than the deductible amount on your policy. SPP isn’t subject to the policy's deductible unless written as such.
• SPP coverage typically costs more than Extended Coverage but it offers more specific coverage for your protection
• When it comes to sets and pairs (like losing one earring), if the item has been listed on a scheduled personal property insurance policy, it can be either replaced or repaired so its value is restored to the pre-loss value. The policy may pay the difference of the value of the property after and before the loss.

As you can see, personal property coverage can be complicated. Do you know what you need and what you don’t?  Everyone could use some advice when it comes to our cherished possessions, so why not call up your insurance agent and get some pointers? They can help customize a personal articles insurance plan that covers you when the unexpected happens.

Be sure to look for our blog series on insurance reviews. As always, hope to hear your questions and suggestions on the insurance topics that interest you.  

Most people don't give much thought to their home owners insurance coverage until a tree destroys their roof or a basement transforms into an indoor swimming pool. The fact is, a periodic checkup on your house insurance coverage can make for a healthier policy and a healthier wallet. Home insurance coverage is more expensive than ever thanks to a rising number of claims – but every year just passively renewing your policy could cost you more than it needs to. 

Here’s why, when and how you should review your home owners insurance coverage:

Why? To make sure you have what’s right for you before you have a loss

When? Periodically (at renewal) or whenever you know there’s been a significant change such as a remodel, purchase or sale of an expensive item

How? Set up an appointment with your agent to go over your policies.

10 Questions to Ask During a Home Insurance Coverage Review

1. Is our dwelling coverage adequate? The amount of dwelling coverage should be enough to cover the cost of rebuilding your home in the event of complete loss. This insurance is based on replacement cost of dwelling not market value and it does not include land. If the dwelling is underinsured, you may get penalized.  Does your insurance agent know about your home addition, or newly renovated kitchen or bathroom?

2. Do we have an all-risk or a named peril policy? When choosing disaster insurance, you basically have these two choices. The primary difference between them is that a named peril policy covers what is "named" (included) in the policy while an all risk covers everything except what is excluded. Typically, an all-risk policy offers much more comprehensive coverage.

3. Do we have replacement cost or actual cash value coverage on our dwelling and contents? Replacement cost coverage and actual cash value insurance refer to the amount of money your provider will pay out if your home or its contents are damaged or destroyed. Replacement cost coverage doesn’t deduct for depreciation while actual cash value insurance does.

4. Do we need building ordinance or water sewer backup coverage? In the event of a claim, your insurance company may deny paying for increased costs or demolition expenses incurred due to local building ordinances that call for the destruction of a dwelling. This coverage is particularly important for homes older than 25 years. You’ll also want to consider coverage for water and sewer backup.

5. Do we have or need a property inflation adjustment on our policy? While most insurance companies automatically adjust your policy to keep pace with building cost inflation, you should check into this. You probably have seen your premiums go up to cover the rising cost of replacement but the annual increase for this is usually minimal.

6. Do we have or need special coverage for other structures on our property? Most policies automatically provide this coverage. However, if you have a swimming pool, tool shed or detached garage on your property, you need to double-check that they are adequately covered.

7. Do we have adequate contents coverage? The value of your clothing, furniture and other belongings adds up quickly. These items are typically insured as a percentage (50% to 75%) of your dwelling coverage. It is very important to understand how much and what is and is not covered.

8. Do we have or need special coverage for any of my personal items? What kind of coverage limits does your policy have with regard to jewelry, fine art, musical instruments, etc.?  Is an appraisal required to get this special home owners insurance coverage?  Without it, your engagement ring may not have enough, or any, coverage if the diamond falls out of its setting. 

9. Has our insurance company changed our policy coverages or added any new discounts?  While they are required to notify you of policy coverage changes, it’s a good idea to ask just in case you missed the notice.  There may be ways for you to save money on your house insurance coverage.  Whether it’s changing deductibles or installing protective devices, you’ll want to find out what you’re missing.

10.  Is my liability coverage adequate for what I need to protect?  Your home owners liability coverage protects you against the financial uncertainty arising from injury (or property damage) caused by you or a resident family member.  Usually, your liability coverage will apply if the injury or property damage occurs on or away from your property. If you don’t have enough liability insurance, then your assets could be at risk. The liability coverage on your home owners policy can help you protect your retirement accounts, investments in stocks and bonds, checking/saving accounts, home and other real estate equity. It is very important to discuss the assets you need to protect with your agent to determine the level of liability coverage that is right for you.

When it comes right down to it, one of the best ways to stay educated about your home owners insurance policy is to ask the right questions of your insurance agent. Don’t assume that just because you have home insurance coverage that you’re fully covered. 

Stay tuned for part two of our blog series on insurance policy reviews.  We look forward to questions and/or suggestions on the insurance topics that matter to you most. 

With many aspects of our financial lives, it’s quite common to just “set it and forget it.” This can work out well when we’re setting up a savings plan that automatically transfers money from a checking account to a savings account, but in the case of insurance, this strategy can end up working against you. Just because you have insurance doesn’t mean you’re covered.  So much can change within the span of a year, and unless you take some time to review your coverages, you may be surprised when it comes time to use them. 

This topic is so important that we’re writing a series of blogs on what to look for when reviewing various kinds of insurance policies.

What to Do When Reviewing Your Insurance Policies

Review Coverage

Do you understand what your policy does and doesn’t cover? 

Assess Your Situation

Is this policy appropriate for your lifestyle today?  Your insurance agent can’t insure what they don’t know about, so help them help you minimize surprises when you have to file a claim.

Need Help Reviewing Your Policies?

Keep yourself ahead of the game by partnering with a qualified insurance agent to help you with your insurance planning.  Insurance might be considered a commodity by some, but advice is not.  With in-depth product knowledge and experienced-based insight, a professional insurance agent can help you build a custom plan that works best for your situation.  

Our blog series will start with what to look for when you review your home owners insurance coverage.  Next, we’ll explore how to review your auto policy coverages.  In the coming months, we’ll look at the important aspects of other kinds of insurance.  Let us know your questions, and feel free to suggest additional insurance coverages you’d like us to target.