Do you know how much your belongings are worth? The number surprises many of our customers. It is important to take the time to inventory what you own and understand your coverage to make sure everything you own is covered, no matter what life throws at you.
You can start by walking around your home and writing down items you have spent a significant amount of money on, as well as items that have appreciated since you purchased them. Document these items with pictures and records. You can then decide how to insure your belongings and choose a coverage option that meets your needs.
Property insurance can cover items that your homeowner’s insurance policy may not. You can also choose additional coverage beyond what your homeowner’s policy already offers to make sure everything will be insured. Personal property includes items not attached to your home, including clothing, furniture, appliances, televisions and electronics, watches and jewelry, collectibles, dinnerware and more.
As you shop for insurance, you will find two coverage options for your belongings: Actual Cash Value and Replacement Cost. Many items lose value over time, so it is a good idea to keep this in mind as you buy coverage.
Your personal property will be covered for the price you can expect to get if you sold it at fair market value, such as through an online auction or garage sale, which is the replacement cost minus depreciation. This coverage may allow for the insured belonging to be replaced with a used item, but usually not a new item. The premiums for this type of coverage are usually lower.
This type of coverage means your insured property will typically be covered for the amount of money it would cost to buy the item against at the time of the claim as new. Premiums for this type of coverage are usually higher.
Insurance companies will usually group personal property into categories and assign a maximum amount that can be paid to replace all items or sometimes single items in the category. This is important to understand because a high total property limit can give you the impression that you have sufficient coverage when you do not.
A common type of item covered by personal property insurance is jewelry, although this category can vary a great deal in value. For example, a watch may be worth $10 or $10,000. Your policy may have a per-item limit, so you should look for the option to cover specific high value items at a higher amount.
If your valuables exceed the per-item limit, a Scheduled Personal Property coverage option may be the better choice.
You can also choose an optional coverage that raises the group limit on a covered property category, such as computers or jewelry, or a category of items that are not covered by your policy.
Are your belongings adequately protected under your homeowner’s policy? Request a free quote for personal property insurance from Pipeline Insurance today. We will give you competitive quotes from top-rated insurance providers so you can choose the coverage options and policy that meets your needs and your budget.