We’re all attached to the things that we own. If we hold on to something, it’s probably because we like it, it has sentimental value, or both. It’s only natural to want to make sure the stuff you own has protection.
If something happened to your possessions, there’s no doubt you’d be upset. Replacing stuff you like is one thing, but items with sentimental value are another matter.
Despite this, it’s good to have insurance to cover damage to your valuables. The things you own are valuable to you, but insurance companies may feel differently when they have to pay on a claim. Here are a few things insurance companies consider when insuring your possessions.
What Are Your Valuables?
When you purchase home insurance, insurance companies ask if you have valuable possessions in your home. The term “valuable” refers to anything expensive, rare, or collectible. Some of the things insurance companies consider valuable include:
- Fine jewelry
- Fine china and silverware
- Coin collections
- Stamp collections
- Sports equipment
- Musical instruments
- Medical equipment
What Is a Personal Articles Policy?
A personal articles policy is separate from your homeowner’s or renter’s insurance. It provides extra coverage for your possessions with high monetary value. It covers specific items and includes things that have a high likelihood of being lost or stolen.
Expensive jewelry and guns are the most common possessions covered, but anything in the list above can receive coverage under this policy.
How Does a Personal Articles Policy Differ From Personal Property Insurance?
Personal property insurance on your homeowner’s policy covers everything that’s in your home. If an earthquake destroyed your home, everything in your home has coverage.
Basic homeowner’s insurance/renter’s insurance typically covers just $2,500 worth of property. Anything that’s stolen or damaged beyond that $2,500 means you won’t receive anything. Every item listed on your personal articles policy gets coverage, without a deductible.
You can also “blanket” your possessions on a personal articles policy. This covers your possessions without itemizing them.
To avoid the hassle of going through an insurance claim, compact vaults are a good investment for some of your most valuable possessions.
Are Your Possessions Covered Outside the Home?
Of course, there are times when you wear your prized jewelry or take your high-end camera out of the house. Most policies do not cover your valuables once they leave your home. You’ll have to get additional coverage.
Even if insurers do cover your possessions, there are policy limits.
Always Maintain Your Coverage
The last thing you want is to be left in a lurch when something happens to your valuables. Check your policy to make sure everything you own gets covered. If not, get additional coverage or switch to a policy that provides full coverage.
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