WRONG!!! There are common household items your insurance doesn’t cover in FULL.
If you’re not careful with your policy and don’t tell your agent everything there is to know about your personal property, there is a big chance you’ve left a gaping hole in your insurance coverage. This is a list of items that may not be covered in full by your homeowners insurance policy:
Collectibles like coins and stamps
Sports equipment like golf clubs or camping gear
Electronics, computers and cameras
Silverware (real silver, gold or pewter)
All of these items are covered under “Personal Property” or coverage “C” on your homeowner policy. However, these items have a catch. Every insurance company has a limit WITHIN coverage C for those items.
For example, let’s assume your personal property coverage is for $100,000. Every company I have worked with has a limit within that $100,000 on the items listed above. It ranges from $1,000 to $2,500. What does this mean for you?
Let’s say your home is robbed, and your limit within a limit is actually $1,500. The first items a thief is going to grab is your electronics. Let’s say a laptop, a desk top, a DSLR camera, your Kindle, and an X-Box totaling roughly $2,000. Your insurance is only going to pay you $1,500. for those items, so you lose $500.
Then the thieves grab your jewelry. You were cleaning all day, so your wedding and engagement rings were at home. Your new anniversary band was under the Christmas tree waiting for you to open it. The diamond and gold necklace you inherited from your dearly departed grandmother was in your jewelry box too. Jewelry total: $5,000. Your insurance is going to pay you $0.00 because they already used your extra limit of $1,500 to cover your electronics.
Total loss: $7,000
Amount Reimbursed: $1,500 MINUS your deductible!!! If your deductible is over $1,500 you won’t get anything!
Money Out of Pocket: $5,500
How do you fix it?
First, you need to make a list of all of your valuable items. Then you need to figure out what it would cost to replace them. You may need to have jewelry and art appraised. It may cost you a little bit out of pocket to make sure the items are covered properly.
Then you need to call your agent and make sure your items are covered on a “Schedule” or “Inland Marine” policy. A schedule is attached to your homeowners policy, whereas an Inland Marine policy will be stand alone.
The Good News
In comparison to a loss with no payments, the price of these policies is incredibly inexpensive. I had an expensive flute on a policy at one point that cost me exactly $8.00 per YEAR. Commonly stolen items, and items that have high claim counts will raise the price a bit.
The best news is most of these polices have a $0.00 deductible or an incredibly low deductible, around $50.00.
Please make an inventory and call your agent ASAP! I promise you the last thing your agent wants to do is look at you while you’re crying because your home has been invaded, or a fire destroyed everything is to tell you “You’re not covered”.
Will you be calling your agent after reading this article?