Hello there!
As your trusted Farmers Insurance agent, Jeff Champ, I believe it’s crucial to keep our communication lines open, discussing topics that are pertinent to your peace of mind. In this regard, I want to discuss an aspect of home insurance that often gets overlooked: insuring the valuable items in our homes.
What Makes an Item Valuable?
An item’s value isn’t determined merely by its monetary worth. It can be an antique piece passed down through generations, a piece of art that adds personality to your home, a collection of rare coins or stamps, high-end electronics, or even designer clothes. The value could also be sentimental, like family heirlooms, that are irreplaceable in our hearts.
Understanding Home Insurance Coverage
Typically, a standard homeowners insurance policy covers your dwelling and personal belongings to an extent. However, it’s essential to understand that there are usually specific limits on how much the policy will cover in the event of a theft or damage due to a covered peril. These limits often apply to high-value items, which could be jewelry, watches, furs, fine arts, collectibles, and more.
Why Insure Your Valuables?
Think about what happens when your cherished valuables are stolen, damaged, or destroyed. A standard home insurance policy might provide some coverage, but it may not be sufficient to replace or repair these valuable items. And what if these valuables appreciate over time, like certain artwork, antiques, or collections? Your insurance needs to reflect the item’s current value, not its purchase price.
Scheduled Personal Property Coverage
Here’s where Scheduled Personal Property (SPP) coverage comes in. If you possess high-value items that exceed the coverage limits of your standard homeowners insurance policy, you might want to consider adding an SPP endorsement. This type of insurance provides additional coverage for valuable items and often doesn’t require a deductible.
What’s more, SPP coverage is broader. For instance, if you accidentally lose a precious piece of jewelry, your standard homeowners policy probably won’t cover it. However, with SPP, you’re likely to get coverage.
Getting Your Valuables Appraised
To add an item to a scheduled personal property endorsement, it’s typically necessary to have it appraised. An appraisal determines the current market value of your item, serving as a basis for the coverage amount you can add. It’s prudent to periodically have your valuable items reappraised to ensure you have sufficient coverage to account for any changes in their value.
Creating a Home Inventory
A home inventory can be an extremely useful tool. It’s a comprehensive list of everything you own, along with the value of each item. This inventory will help determine how much personal property coverage you need in your home insurance policy. Plus, in case of a claim, it provides a record of all your belongings and their estimated value, facilitating the claim process.
Record Keeping
In addition to a home inventory, keeping detailed records of each valuable item—receipts, appraisals, and photographs—can be incredibly beneficial. These records provide proof of ownership, making it easier to file a claim if the need arises.
Risk Management
Last but not least, it’s worth mentioning that insuring your valuables is a form of risk management. By securing appropriate coverage, you’re essentially transferring the financial risk of loss or damage to the insurance company, giving you peace of mind.
In conclusion, insuring your valuables goes beyond merely protecting their monetary value—it’s about safeguarding your cherished possessions and memories associated with them. If you need assistance determining the appropriate coverage for your valuables or wish to discuss adding an endorsement to your existing homeowners policy, please don’t hesitate to reach out.
Stay safe and insured,
Jeff Champ, your Farmers Insurance Agent
