Did you get exactly what you wanted over the holidays? A rare and expensive piece of artwork, maybe? Possibly a new piece of jewelry covered in diamonds? Whatever it may be, however priceless your new valuable may seem, it’s time to make sure your newest treasure is protected.
While you know to keep your valuables secured and locked away, there are certain things that can’t always be prevented - broken, lost, and misplaced valuables are devastating. Make sure your valuables are insured properly so that if the worst happens, you’ll be able to replace and repair them for the amount their worth.
Standard Homeowners Insurance Isn’t Enough
A standard Charlotte homeowners insurance policy offers only a certain amount of protection, up to very specific limits - typically not enough to protect even one truly valuable piece of art, jewelry, or collectible. Jewelry limits are often around $1,000 while other items may not be protected at all. Worse, a lost stone out of a ring or necklace or a broken glass vase won’t be covered at all because breakage and lost items aren’t included in standard homeowner policies. You’re going to need coverage designed specifically for your valuables.
Blanket Coverage vs. Scheduled Coverage
When you discuss adding extra coverage to your policy for your valuables, you’ll have a couple of options: blanket coverage and scheduled coverage. Blanket coverage offers a lump sum limit for a group of your valuables. When something is lost, stolen, or damaged, as long as the replacement value is within your coverage limits, you’ll be compensated.
Scheduled coverage is more detailed and requires a bit of extra work. With scheduled coverage, you’ll need to list and include the appraised value of each item you want to insure. When you need to file a claim, the specific item will be covered up the amount you’ve insured it for. You may have to provide proof of a current appraisal when you’re ready to insure some items.
When choosing between blanket coverage and scheduled coverage for your valuables, consider the value of the items. Smaller items, such as cameras, smaller pieces of jewelry, less valuable artwork, and others may be combined for blanket coverage - and you won’t have to list each item individually. Higher value items, especially those that are susceptible to accidental loss or damage, such as jewelry, should be considered for scheduled coverage.
New Property and Other Considerations
Depending on your policy, your newest items - like those purchased over the holidays - may have some protection if you’ve already got a policy for your existing valuables. Within the first 30 to 90 days, your policy may cover new valuables at 25 percent of their value until you add them to your current policy. Don’t wait too long to insure your newest acquisitions, in case something is damaged or lost.
Check your policy for value appreciation, as well. Some insurance companies will allow for up to 50 percent appreciation of value. That antique vase worth $5,000 could be covered for more if it’s value has increased over time. When in doubt, talk to your insurance agent to find out more about your specific coverage.
If you’re in the market to insure a new, beautiful, and expensive gift you’ve received or you have questions about your existing policy, contact us at Charlotte Insurance. We’re here to help!
Thanks to Flickr user International Gem & Jewelry Show for the photo.