Claims Corner: Insuring Your Valuables
Michael McMahon has around a dozen claim stories regarding missing jewelry with prices ranging from $1,400 to over $10,000. However, this claim story is about a different type of valuable: Hearing aids.
The insureds were on a European cruise, relaxing on a lounge chair near the railing of the boat looking out at the sea. The husband had his hearing aids in a zip lock bag to keep them safe from getting wet. When he got up and shook out his towel the hearing aids fell out and flew over the side rail of the boat! So, needless to say the bag with the hearing aids is now afloat somewhere in the Mediterranean Sea.
Thankfully, the hearing aids were scheduled and a week later, they received the funds to replace the $6,000 hearing aids.
Your valuables are important to you—and insuring them is equally important to prevent serious loss in the event of damage or theft. Learn more about how you can protect the finer things in life with additional coverage.
The Basics
Standard homeowners, condominium or renters insurance policies include a limited amount of coverage for jewelry and other valuable items. However, many policies limit the dollar amount of coverage for the theft or loss due to a covered peril of such items.
Items that may require additional coverage:
- Jewelry
• Heirlooms & antiques (furniture, furs, etc)
• Rugs & fine art
• Musical instruments & sound systems
• Bikes, sports & golf equipment
• Vintage wine
• Silverware, china, crystal
• Garden tractors
• Designer appliances
• Computers & cameras
• Collectibles (stamps, coins, etc.)
• Firearms
To properly protect certain types of valuables, additional coverage is available through a policy endorsement or floater.
Endorsements
Endorsements are additions to your homeowners, condominium or renters insurance policy that change or add to the policy’s provisions. The endorsement can cover property otherwise excluded from a basic homeowners insurance policy, extend the number of perils included, or increase the amount paid for a covered loss. The items of value are “scheduled” on a list that includes a brief description and the item’s dollar value.
To determine each item’s value, an appraisal or sales receipt is typically required. This will help ensure that, in the event of a covered loss, the amount of insurance is enough to cover the repair, replacement or cash payment of the item. Items scheduled are typically not subject to the policy deductible.
Floaters
A separate personal articles floater policy may be used to schedule your valuable property that is subject to special limits under basic homeowners coverage.
Once you have an endorsement or floater, it is important to periodically review your policy’s coverage limits to minimize the likelihood of being underinsured due to outdated appraisals and inadequate limits of insurance.
The Cost of Coverage
The cost of coverage varies upon the item, but typically the fee is nominal. Our personal lines team of professionals can provide you with more information about coverage and an estimate for the cost of scheduling an item.
We’re Here to Help
Before a thief steals your possessions or precious jewelry becomes lost, call McMahon Insurance Agency at (609) 399-0060 to learn more about the affordable ways we can help you protect the things you value most.