People buy homeowners insurance policies to protect their investment in their home as well as cover the cost of replacing their personal items and covering any liability that may arise. The problem that many discover too late is that their policy may fall short when covering valuable items. While the policy will provide some form of compensation for an item’s loss, it may not cover its full value unless it has extra insurance to cover it.
Know What Your Policy Covers
A homeowners policy is designed to cover four primary things: the structure of your home, your personal possessions, liability issues, and living expenses that may be required if you are displaced from your home after a disaster or catastrophic events such as a house fire or flood. If you are unsure of what your policy may or may not cover, you will need to have your agent go over it with you.
Know What It Doesn’t Cover
It’s important to know what your policy does not cover. When it comes to your structure and personal possessions, certain types of water damage may not be covered. Liability may also be limited. A good example of this is dog bites. If you have a dog, you may need to purchase additional coverage to cover any damage they may cause. Valuable items are another gray area where you may not have all the coverage you need. Remember that most homeowners insurance policies only cover the estimated value and not the replacement cost.
Insuring Your Valuables
Whenever you have an item that is worth more than its replacement costs, you will have to purchase additional insurance to cover that item. This includes valuable jewelry, antiques, furniture, customized electronics, artwork, etc. In most cases, we attach a monetary value to an item due to sentimental reasons. That does not necessarily mean that it is worth what we think it is. The sentimental value we hold for an object and its actual market value are two different things.
Have an Appraisal Performed
If you are unsure of what an item’s true value is, you may want to hire an appraiser and have them set the value. This is a great way to make sure that antiques, artwork, jewelry, and other high-dollar items have the insurance coverage needed to properly compensate you for their loss. Any time that you are unsure of an item’s value, it is worth the cost to have an appraisal performed. Your insurance agent can help you find an appraiser specializing in the type of items you are dealing with.
If you are ready to have your existing homeowners insurance updated or simply reviewed, contact the agents of Duane Weber Insurance. Each agent is specially trained to help you identify areas where you may not be adequately covered. We can walk you through the process and make sure that you have all the coverage you need for all of your possessions.