Most people love their home, but what makes it far more valuable than the
walls and roof are the things that fill it. Your personal property is special to
you, things that you have gathered over many years and selected to suit
your personal taste. Making certain you have enough coverage for these
things should be a top priority when it comes to homeowner’s insurance.
Here’s how to be sure your personal property is protected.
How Personal Property Coverage Is Determined
Most insurance companies use a percentage of the value of the home to
determine the amount of personal property coverage. When you see that
number, be sure to question it if you believe it’s too low. In some cases you
may need to provide some evidence for the extra coverage, but it’s worth the
hassle. If you were to lose everything in a fire, that is the maximum amount
you would receive to replace everything. And that really is everything, from
your toothbrush to your dining room table. So be sure to discuss that
number thoroughly with your agent!
Special Items Of Value
Whenever there is something of particular value in a home, such as artwork,
jewelry, or rugs, you may need to take out a special additional coverage
known as a floater. A floater adds a specific coverage to the policy that is
intended only for that particular item. It usually requires an appraisal of the
item as proof of value and comes with an extra premium amount. However,
if your diamond engagement ring is stolen from your home you will certainly
be glad you covered it properly, because most personal property coverage
has a per item limit on jewelry that probably won’t cover it.
When You Aren’t At Home
Many people don’t know this, but your homeowner’s insurance will actually
cover your personal property anywhere you go. That means that if your
things are stolen from your car, or even from your hotel room in Hawaii, you
can make a claim against your policy to recover the damage. You will, of
course, have to pay the deductible, so the amount of the stolen goods will
need to be enough to make the claim worthwhile.
Your homeowner’s insurance covers more than your house—it covers the
things that make it your home. Be sure you help your agent and insurance
company cover your things properly by keeping good records, taking out
floaters when needed, and ensuring you have the right amount of coverage
on your policy.