I recently added coverage for a $15,000 watch to one of my client’s policy. I found out about the watch by accident while running in to my client in a social event. The watch was a 25th anniversary present and my client assumed it was covered on their homeowner’s insurance policy. I added coverage to the policy the following day and made a note to write about it on my blog, so here we go:
Most homeowner’s policies have inside limits for certain items like Jewelry, Watches and Furs. My company covers those items up to $2,500 at a maximum of $1,000 per item which sounds low, and is actually considered the industry standard in CA. Some companies offer higher limits but not much higher.
There are two ways to add coverage for these types of items:
Scheduled Personal Property (SSP): Add coverage for a $15K item (in this case it was a Rolex watch), provide a copy of the receipt, or an appraisal (by a certified specialist) to your insurance company, and pay additional premium and deductible on that item. In case of a covered loss you will be able to recover what your item is worth less the deductible amount.
Blanket Coverage Endorsement: This won’t work for a single item of that value; however it is very effective and much cheaper if you have several items totaling $15K or $20K. This option lets you increase your policy’s inside limit to accommodate your property value at a much lower cost to insure. You can get your limit increased to let’s say $20K blanket coverage at a maximum of $5K per item, so if you have a few items that do not exceed $5K each you will be able to recover their cost in case of a covered loss.
Call your insurance Agent/Broker right now and ask what type of personal property coverage you have. If they tell you everything is covered ask for it in writing, ask to have a policy mailed to you and read it cover to cover and make sure you know what is covered and is not.
Most homeowner’s policies have inside limits for certain items like Jewelry, Watches and Furs. My company covers those items up to $2,500 at a maximum of $1,000 per item which sounds low, and is actually considered the industry standard in CA. Some companies offer higher limits but not much higher.
There are two ways to add coverage for these types of items:
Scheduled Personal Property (SSP): Add coverage for a $15K item (in this case it was a Rolex watch), provide a copy of the receipt, or an appraisal (by a certified specialist) to your insurance company, and pay additional premium and deductible on that item. In case of a covered loss you will be able to recover what your item is worth less the deductible amount.
Blanket Coverage Endorsement: This won’t work for a single item of that value; however it is very effective and much cheaper if you have several items totaling $15K or $20K. This option lets you increase your policy’s inside limit to accommodate your property value at a much lower cost to insure. You can get your limit increased to let’s say $20K blanket coverage at a maximum of $5K per item, so if you have a few items that do not exceed $5K each you will be able to recover their cost in case of a covered loss.
Call your insurance Agent/Broker right now and ask what type of personal property coverage you have. If they tell you everything is covered ask for it in writing, ask to have a policy mailed to you and read it cover to cover and make sure you know what is covered and is not.
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