After receiving valuable jewelry, it’s important to contact your agent immediately. Keep in mind that most homeowners policies place limitations on coverage for personal valuable items. This means that owners of these valuable items may not receive the full value if any of the items are stolen or lost. As a general rule, most homeowners policies provide coverage for possessions up to 50-70 percent of the total coverage amount chosen. This means that a person who has a $600,000 policy would enjoy coverage as much as $300,000- 420,000.
However, most policies place limitations on certain types of personal belongings. For example, a policy provider may offer to cover $1,500 or more for all jewelry if theft occurs or the jewelry is damaged. There are several other categories of personal belongings that have limited reimbursement terms. Firearms, stamps, furs, coins and silverware are examples of such items. Homeowners should be sure to read the section of their homeowners policies regarding contents and additional coverage. It’s important to remember that accidental loss is not usually covered. This means that a woman who loses her engagement ring will not receive payment from the homeowners insurance company unless she scheduled such items so full protection is provided.
In some cases, if any one item is valued over a specified amount that each insurance carrier has set which is typically around $20,000 then an appraisal may be required. If under this amount then a detailed receipt is acceptable proof for the value of the item. After a value schedule is assigned to the item, the owner has full protection for the total amount if the item is lost, destroyed or stolen. This makes the claims experience more simple since there isn’t a need for an investigation about the item’s value. In addition to this, there is no deductible assigned to the items in the event of a loss.
Since additional coverage is so affordable, it’s best for all homeowners who have valuable jewelry or other special items to speak with their agent to make an assessment of what should be insured and provide valuable advice. As a general rule, homeowners policies don’t assign specific limits on electronic devices aside from the overall limit for possessions. It’s best for homeowners to insure their valuable items in such a way as to ensure that replacement-value coverage is in place.
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