Insuring Your Valuables

Have you thought about insurance your valuables? Big ticket items such jewelry or electronics. Should you insure them? Yes, however this takes a bit of thought on how to do so, so let us look at some of the more important matters involved.

The question of existing insurance

Many people might think that their homeowner’s insurance policy covers all of their jewelry and other expensive items kept within the house, however this is not always true. Homeowner’s insurance policies vary as far as what they will and will not protect. There are plenty of cases where policies only cover half of your personal belongings.

The shortage of coverage can translate to massive losses in the event of a fire, major burglary or other threat, especially if you are storing many highly valuable items.

Elements of coverage

Investopedia, a website devoted to investment and finance best practices, uses the example of wedding rings to outline its suggestions on insuring a piece of valuable jewelry. According to the news source, the first step is to get a professional appraisal to ensure the item is properly valued.

As for cost, Investopedia states that a piece of jewelry valued at about $6,000 will translate to an average of about $80 to insure annually, with policyholders paying between $1 and $2 for each $100 of value the covered item has. Speak to your Town & Country Insurance Agent about the other considerations involved in insuring your valuable jewelry and new big-ticket items following the holidays.

Covering valuables

Depending upon which types of items you receive, there are various approaches to find coverage. For example, The New York Times, a major publication, explains that it is best to schedule (i.e., insure an item by listing it on the policy) items when you have a lot of highly valuable ones, rather than grouping them together.

According to the Times, insuring each valuable individually within the schedule will certainly be more labor intensive, as it demands appraisals and other activities that umbrella-style coverage would not. However, it is worth the effort when various expensive and precious items are in your possession.

On the flip side, if you receive items such as flat-screen televisions or other electronics that you want to insure, a grouped-together insurance policy might be the best option. Your Town & Country Insurance Agent will be able to guide you through the steps you need to take to properly cover your valuables after this holiday season.

Note: These are general descriptions only. Coverage varies by company. Exclusions apply. Contact your Town & Country Insurance Agent for additional information and to determine if your policy provides Service Line Coverage.