Whether you have jewelry, antiques or an art collection, protecting your valuables requires an insurance review to ensure you have the right coverage to cushion a financial loss in the event of damage, loss or theft.
Standard homeowners, condominium or renters insurance policies include a limited amount of coverage for jewelry and other valuable items. However, many policies limit the dollar amount of coverage for the theft or loss due to a covered peril of such items. To adequately protect certain types of valuables, additional coverage is available through a policy endorsement or floater.
Endorsements are additions to your homeowners, condominium or renters insurance policy that change or add to the policy’s provisions. An endorsement can cover property otherwise excluded from a basic homeowners insurance policy, extend the number of perils included or increase the amount reimbursed for a covered loss. The items of value are “scheduled” on a list that includes a brief description and the item’s dollar value.
To determine each item’s value, an appraisal or sales receipt is typically required. This will help ensure that, in the event of a covered loss, the amount of insurance is enough to cover the repair, replacement or cash payment of the item. Items scheduled are typically not subject to the policy deductible.
A separate personal articles floater policy may be used to schedule your valuable property that is subject to special limits under basic homeowners coverage.
Once you have an endorsement or floater, it is important to periodically review your policy’s coverage limits to minimize the likelihood of being underinsured due to outdated appraisals and inadequate limits of insurance.
Why Should I Insure my Valuables?
The limited coverage provided in your homeowners policy may not be sufficient to cover your valuables in the event of a loss. Adding an endorsement or floater policy to the coverage you have ensures that you’ll be reimbursed for these items.
The Cost of Coverage
The cost of coverage varies by item, but typically the cost will be nominal. To learn more about specific coverage options, consult your financial professional at MFA Asset Management for more information.
This article was written by Advicent Solutions, an entity unrelated to MFA Asset Management, LLC. The information contained in this article is not intended to be tax, investment, or legal advice, and it may not be relied on for the purpose of avoiding any tax penalties. MFA Asset Management, LLC does not provide tax or legal advice. You are encouraged to consult with your tax advisor or attorney regarding specific tax issues. ©2015 Advicent Solutions. All rights reserved.