Tom's Blog
You just wrapped up the holidays and ended up with some pretty nice gifts! That designer necklace must have cost a fortune as well as that rare coin collection you just inherited from your grandfather. Would you be able to replace these valuable personal items if a loss occurred such as theft, fire, or mysterious disappearance? Insuring your valuable items is of utmost importance and following these guidelines will allow you to sit back and relax, knowing your valuables are protected!
Protect Your Personal Property with an Endorsement
A standard N.C. homeowners policy provides a broad coverage for personal property to include personal items such as furniture, clothing, and appliances; however certain items are only covered for a very limited amount. Most N.C. homeowners policies set a specific dollar limit on the protection offered to cover such things as firearms or jewelry. For these specific valuable items, there is a coverage option available to enhance coverage by increasing higher limits to better reflect the value of your special property. This endorsement is sometimes referred to as a scheduled personal property endorsement or a personal articles floater, which would single out those valuable belongings to include an expanded protection to reflect the accurate value.
For example, let’s say that someone breaks into your home and steals your brand new necklace you just received for Christmas, valued at approximately $5,000. Your N.C. homeowners policy does provide coverage for the stolen jewelry, but the limit may only be $1,500 which means you will only get $1,500 towards the $5,000 value. It’s always best to discuss this type of situation with your N.C. independent insurance agent so that you are well advised on the specific limits under your homeowners policy. Your agent can then guide you on the best way of protecting your valuables under an endorsement.
What Kind of Personal Property Can Be Covered Under An Endorsement?
There are many different types of personal possessions that may typically be scheduled under a homeowners endorsement, should a covered loss occur. They include the following, but not limited to:
- Furs
- Cash
- Coin Collections (rare and current)
- China/Crystal
- Wine Collections
- Jewelry
- Cameras and Related Equipment
- Stamps (rare and current)
- Silverware
- Personal Computers
- Golfing Equipment
- Firearms
- Fine Art (paintings, pictures, rare books)
- And More!
*When in doubt, ALWAYS contact your N.C. independent insurance agent to inquire.
Ways to Protect Your Treasures
There are ways to document your treasures and establish a determined/agreed value so that your independent insurance agent can document that information for your scheduled personal property endorsement.
- Take photos of your valuables
- Maintain a detailed description of each item
- Have a current appraisal of your valued items (every 3 years)
- Keep documentation of these valuables in separate, locked location (safety deposit box, at an attorney’s office, or fireproof box)
- Keep a record of serial numbers, if that pertains
This detailed schedule is then attached to your policy and a nominal increase of premium is based on the total amount for which your specific property is valued.
Loss Settlement
The best advice when you accumulate valuable personal items is to immediately contact your N.C independent insurance agent to schedule the item(s) in question and determine whether you are paying for replacement or actual cash value coverage should a covered loss occur damaging or destroying those valuable items. Furthermore, you should read your policy for the exact loss settlement provisions. After doing this, you are free to sit back and relax, knowing your valuables are safeguarded!
