Many homeowners assume their big-ticket items like jewelry and antiques are covered by a standard insurance policy. Unfortunately, that assumption is often wrong. Most standard homeowners insurance policies provide a cap or limit on luxury items, collectibles or other expensive belongings; usually $2,000 to $3,500. Above that level, it is necessary to obtain additional coverage typically in the form of a rider or endorsement. Protect all your property by following these simple steps.
- Make a list of all “big ticket” items – be sure to include gifts, inherited items or large purchases. Common examples include works of art, collections, electronics, cameras, computer systems and jewelry.
- If you have an appraisal, be sure to include it; otherwise, photographs, receipts and other items documenting the condition of the object(s) are helpful.
- Call your insurance agent for quotes. Ask about replacement coverage as well as limitations. For example, if the item is used for business, you may need a different policy than for items retained exclusively for personal use. Items such as jewelry or collectibles may require additional coverage depending upon geographic areas – for example, when traveling out of the country or when away at college, it may be necessary to obtain a temporary policy to ensure that full protection is in place.
- Do your homework. Ask your agent if the same provider insures big-ticket items and what would happen in the event of a claim.