Even though your homeowners insurance allows you to pick an amount of coverage for personal property – your personal belongings inside the home – you may be surprised that your policy includes limits on certain items; most are higher-end items, such as cameras, electronic equipment, guns, and jewelry.
So, if you buy a policy with $50,000 in personal property coverage, there are still limits on what your insurer will pay to replace or repair these items. Often the limits read as, “$500 limit on guns” or “$1,000 limit on computers.” So, if you experience a total loss and file a claim, your $50,000 in personal property coverage still only covers up to the policy’s limits on these specific items.
The peace-of-mind solution
Talk to your agent and make sure you feel comfortable with the policy you’re buying.
You should discuss with him or her additional riders that are available and describe or show any special items you own, such as collectibles, jewelry, or artwork. With some insurers, the rider can be added so you can obtain more coverage, or you can schedule the items at a stated value or appraisal cost. For special items, it may be best to buy a special policy, which is like a spin-off from a homeowners policy and provides coverage for just those items you choose.
Be aware that you’ll have to provide appraisals to ensure adequate coverage, and that you should always have your special items appraised regularly to maintain adequate coverage in the event the items increase in value.