Homeowners policies are designed to protect your home and what’s inside but there is usually limited coverage for valuable possessions such as jewelry, fine art and collectibles. Valuables insurance is designed to give you extra coverage for your rare and irreplaceable items. Often, valuables policies have the ability to cover specific items that are easily lost, misplaced or have a higher likelihood of being stolen.
What types of items can be covered by valuables insurance?
- Jewelry and watches
- Electronics and cameras
- Fine art
- Wine & spirits
- Collections, like stamp and coin collections
- Sound equipment
- Silverware, china and crystal
- Sports equipment and memorabilia
- Rare books
- Musical instruments
What types of loss does a valuables policy cover?
This type of insurance often covers against theft, misplacement, loss and even mysterious disappearance. A general rule of thumb is that the policy covers everything except what is specifically excluded. Exclusions typically include things like wear and tear.
How is this coverage different from my personal property insurance?
Personal property insurance on your homeowners policy covers everything inside your home and has special limits for higher value items like jewelry. Most homeowners policies include limitations when it comes to high value possessions. They might not provide enough coverage for the item or they may not cover it at all.
How does reimbursement after a loss work?
It depends on the specific terms of each policy but generally there are two ways to value items, replacement or agreed value. Replacement means that if you were to accidentally drop your wedding ring down the drain and it is covered for $5,000, the insurance company will attempt to find a replacement ring of similar like, kind and quality. If that same ring is under agreed value on your policy, the insurance company will simply pay the agreed amount (the amount of coverage the item is scheduled for on the policy.)
What does valuables coverage cost?
Price depends on a variety of factors such as the where you live, the type of items you have scheduled and the value of those items. Luckily, valuables insurance is typically very affordable.
How do I know if I should insure a valuable item or not?
If you’re on the fence about whether or not some of your special possessions would best be covered by a valuables policy, it is a good idea to ask yourself, “Could I replace this item immediately and comfortably if something happened to it?” If the answer is no, we recommend talking to one of our agents about getting coverage.