Home insurance can be complicated, especially if you’re a new homeowner, but there are important things you need to know. If you have items that would intrigue burglars, you may want to look into the type of insurance available for your valuables. It’s possible that you can have all kinds of items insured, including your jewelry, fine art, furs, wine, and collections. While you probably have primary home insurance, it might not cover this type of personal property, and it may also be limited on how much can be paid out for particular items.
Standard Home Insurance
Your basic home insurance will tell you the max amount you can receive for specific items. For example, your coverage may only pay up to $1,500 for big-ticket items like electronics, plus valuables including furs and jewelry. The limit that will be paid will be different from insurer to insurer. Before you can move forward, know what type of coverage your basic home policy gives you for valuable items–this way, your coverage won’t overlap.
Decide What Items You Need Coverage For
Once you have an idea of the type of coverage your home policy gives you for your valuables, you can start thinking about what additional coverage you may need. You have two options:
- Purchase individual coverage for individual items. For example, you may be able to get a solo coverage rider for your engagement ring.
- Purchase blanket coverage for a type of item, like all of your furs or your fine silverware.
It’s important to note that blanket coverage typically comes with a limit per-item. For example, you may get coverage for your collection of vintage cameras, but you would only get up to $2,500 per item. If you don’t have any pieces within the collection that are worth more than the per-item rate, blanket coverage is a good option.
Keeping Track of Your Belongings
Should something happen to your valuables, you want to make sure you have everything documented and organized well ahead of time. It’s a good idea to track your inventory. When you purchase something (and for the items you already have), write down the name of the item, when it was purchased, how much you paid and the serial number. This financial information should be kept safe in a fireproof box. For the items, you already own, consider having them appraised to figure out their actual worth. This is especially important if you decide to move and an issue arises where your property is damaged, lost, or stolen. Some insurances cover your possessions during a move so you want to be prepared to be able to file a claim with your records of what you have with how much it costs.
Certain situations may require you to get a lawyer. Be sure to know your rights as legal help can assist you in getting the compensation you deserve for stolen valuables, and certainly is an option to consider if the item was worth a high amount of money.