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Homeowners Insurance: Does it Cover Valuable Collections?


If you have special collections such as jewelry, antiques, artwork, silverware, wine, furs, or firearms, your standard homeowners or renters insurance policy may leave your valuables exposed to loss. Why take the risk? Read on to find out how to protect the things that matter most to you…

A common and potentially costly mistake

One of the most common mistakes made by those with high-value items is expecting their standard homeowner’s or renter’s insurance policy to cover any losses. While it’s true that your high-value items are generally covered for losses caused by all the perils included in your policy such as fire, windstorm, theft, and vandalism, there is a catch: The amount of coverage is strictly limited.

Most homeowner’s policies set limits, such as $2,500, on the amount of protection offered to cover the theft of high-value items. Furthermore, these policies may not cover some types of losses at all such as a stone falling out of a diamond ring, an antique statue that accidentally gets broken, or a flooded basement that damages electronic equipment.

A smarter approach

How do you make sure your high- value items are fully protected? By purchasing additional coverage specially designed for these situations. When it comes to increasing coverage for your valuables, you generally have three options:

  • Raise the limits under your standard homeowners insurance policy. This is the least expensive option, but there’s usually a limit on the amount you can claim for the loss of any individual piece.
  • “Schedule” each individual item through the purchase of a floater policy. This option requires you to have each item appraised and will cost you more in premiums, but you get much broader protection. A floater covers losses of any type, including accidental losses such as dropping a ring down the kitchen sink drain or leaving an expensive watch in a motel room, things a standard policy won’t cover. Also, if there is a house fire, having your items scheduled can help avoid arguments with your insurance company about the contents of the home – the proof is right in your insurance contract. Finally, because you generally have to get items appraised to get them scheduled, this option helps you make sure you’re getting the right amount of coverage for each item.
  • Purchase broad blanket coverage for each category of valuables such as jewelry, art, wine, collectibles, etc. With this option, you don’t need to schedule, or list, each item individually, so this option is less costly than separate floater polices. This option is best for less expensive items like smaller pieces of jewelry.

Don’t take unnecessary risks with the valuable possessions you’ve worked so long and hard to obtain. Give them the protection they need, while getting the peace of mind you’ve earned. Contact your FICOH independent agent to learn more today.e.