We have an Insurance tip for you. For instance, a lot of people know that their personal property is covered under their homeowner’s policy, in your condo policy, or your renter’s insurance policy. But a lot of people don’t know in certain cases that coverage can be very limited. That could be anything of particularly high value like jewelry, camera equipment, bikes, collectors’ items, photography equipment, and much more which are all included with limited coverage in some cases. If you have high-value items in your home or in your possession, then what we suggest is that you should better explicitly provide coverage for your precious possessions. What you can do is you can schedule those items or basically have them specifically insured on the policy and it does a number of things for you. For one it will include coverage for theft and mysterious disappearance aka your ring comes off and falls down the drain it can’t be recovered and in addition to that, it carries a zero-dollar deductible so there’s no deductible on that schedule property if you choose it to be that way. So, it’s a nice additional feature that you can add right onto your existing policy to make sure that you’re properly covered. Before we get started, firsts let have a quick overview of items that would require extra coverage and are eligible:
- Valuable Jewelry (Gold, diamond, rings, necklaces, nose pins, etc.)
- Sporting equipment
- Fine Art
- Musical equipment
- Collector items (Stamps, coins, pictures, etc.)
There are a number of ways that you can follow up to protect your high-value items. The first most are that you need to increase the coverage of your valued items. For doing so, firstly you can higher up the limit on the insurance policy you have opted out for valued items or you can even choose extra protection for your items through a floater or endorsement insurance. These insurance policies basically give coverage to items that are easy to move and are designed to provide coverage to anything from diamonds to expensive watches and much more.
Riders and Scheduled Personal Property Coverage
Once you have figured out which items are most valuable to you, then you need to single them out. To assess the worth of an item and to determine how much value it is to you, there are a variety of ways that you can determine it. You can either search the internet to determine the value of the item or take it to an expert who can guide you. The next thing you need to do after determining the worth of an item is to contact your insurance provider and ask them that you want to purchase additional coverage which is known as riders or scheduled personal property coverage. This policy is an addition to the homeowner’s policy which makes sure your valuable items get the maximum coverage and in case of any mishap, this policy ensures that you are fully compensated for it and minimizes risk.
If we take a look in-depth at this coverage policy, we see that it provides higher coverage for your valued possessions which can range from valuable jewelry to collector’s item things. Furthermore, when an individual purchases this additional coverage and schedules their valuable property, it increases the coverage limits for their scheduled items. This policy further aids by safeguarding the owner’s prized possessions from further risks which a general homeowner’s policy doesn’t cover.
In addition to this, if we further look at the benefits of the Riders policy we can see that it can provide you coverage against theft, similar to home owners policy does but instead this policy only provides coverage for the valuable items you have insured. Moreover, the majority of people have this bad habit of misplacing things or forgetting them. Imagine you’re a party, having the time of your life and in all that hassle you somewhere drop your father a 24 karat limited edition Rolex watch. It’s a bummer right and the next day when you’re unable to find it, then it would feel like the end of the world. But guess what, when your father finds that you lost his expensive watch. He’s not angry at all which is because your father had the rider’s insurance for the watch which is kind of the best option as it provides coverage for “mysterious disappearances”.
If we look at the regular policy, it offers us cost only for coverage but the rider also provides you cost for replacement coverage. To avail of this option, you should always ensure that you have the proof of evidence of purchase which is the receipt or any other thing if you wish to claim for coverage.
Benefits for having Riders and Scheduled Personal Property Coverage
- Higher Coverage
- Little or no deductibles
- Unintentional Loss coverage
As said before the home owner’s insurance policy has limitations to it. For instance, let’s assume that you might have an $80,000 limit in personal property coverage for your possessions. But your limit on your collectible items may be $5000. That means that if your valuable items are worth more than $20,000 and you don’t add a rider for it, your insurance company won’t pay out more than $5000 on a claim involving that item.
Riders’ insurance policy mostly has a very little deductible amount or sometimes not at all. If we take an example, let’s assume that you have a fine art painting which is worth $10,000, and somehow you get robbed and it’s gone. If your property deductible is $8,000, then you’ll only receive $2,000 on an insurance claim. But, if you added a rider for that instrument and the rider deductible is $100, then your insurance payout would be $9,900.
Cost for having this extra coverage
The cost of having rider insurance varies from item to item, assessed value, and also from where you purchase it. To sum up, having a rider’s coverage can be affordable and minimizes risk for the owners. This coverage can be scheduled at many insurers for about $1.50 – $2 for every $100 (or 1.5 – 2%). That means a $5,000 piece would cost around $75 to $100 per policy.
If you need more guidance? Reach out to us anytime!