What many people fail to realize is that standardized personal possessions coverage on a home insurance policy is often not adequate to insure the full value of all their belongings by itself. While it is possible to insure most belongings under your plan, you will often have to expand upon your standard property insurance benefits to get the correct coverage.
Consider some of the most efficient ways to do so.
Understanding Possessions Insurance
Numerous hazards could strike your home at any time, from fires to severe weather and household burglars. Whenever problems beckon, your possessions could sustain damage. It is your possessions coverage that will help you repair or replace these belongings.
Still, when selecting your homeowners insurance, you must pay attention to the details of your plan. Various limitations to your coverage will apply.
Possessions insurance will include deductibles, which are amounts of money you agree to pay for a claim cost yourself, rather than obligating your insurer to pay.
- Some high-value items will be subject to sub-limits beyond your total coverage limits. For example, while you might have $15,000 in total possessions insurance, you might be limited to only $1,000 worth of coverage for damage electronics.
- Many policies will only pay for damaged items based on the actual cash value (ACV) of these items. These are items’ used values at the time of losses, rather than their like-new values.
Still, while you might have certain limitations on your possessions coverage, there are many ways to expand upon it, too.
Increasing Your Personal Possessions Insurance
To expand upon your possessions coverage, consider adding the following benefits to your policy:
- Scheduled Personal Property Riders: If you own particularly high-value or unique items (I.e. jewelry, art, furs, antiques), then this coverage allows you to expand the coverage provided by your plan. Specific possessions will be itemized on your plan, and you will be able to receive much more compensation for these items in case of a loss. Additionally, you can receive coverage for more expansive perils, such as if you accidentally lose a piece of jewelry.
- Replacement Cost Value Contents Insurance: Under this coverage, you will be able to increase your personal property coverage to cover items at today’s values, rather than at the used value represented by cash value coverage.
- Special Personal Property Coverage: Standard homeowners policies might list only the perils that they will cover, with every other potential loss being excluded. However, by upgrading to special coverage, you will be able to flip your coverage so that your plan will all coverage except for a specific list of exclusions. Therefore, your benefits will be much more expansive.
Throughout the process of insuring your personal possessions, your home insurance agent will be by your side. Our commitment is to make sure that your most cherished items always have appropriate benefits ready to protect them in case of sudden losses.