Month: July 2019

Are your high-value items covered?

What do your grandma’s engagement ring, Mickey Mantle’s rookie baseball card and the painting your wealthy uncle bought at a Christie’s auction have in common? They’re all rare and valuable, and that means they need to be insured.

Homeowners and renters insurance cover your personal property. But even if your policy’s overall limit covers everything you own, it might have sublimits that don’t fully cover specific, high-value items.

So what should you do?

Eligible Items

First, determine if you need extra insurance. You might if you own:

  • Precious jewelry
  • Fine art
  • Musical instruments
  • Rare postage stamps and coins
  • Sports memorabilia
  • Fine china and silverware
  • High-end electronics
  • Other antiques and collectibles

Riders and Scheduled Coverage

To make sure your items are fully insured, you can buy additional insurance called a “rider” or “scheduled coverage” to supplement your homeowners or renters policy. What do you get for your extra premium dollars?

Riders for valuable items cover theft and other perils, just like your homeowners or renters policy does. These riders can also cover what’s called “mysterious disappearance,” which is a great thing to have if you’re the forgetful type.

These policies may also provide replacement cost coverage even when your regular policy only provides cash value coverage. Tip: Keep receipts and appraisals in a safe place to prove the cost of any lost, stolen or damaged valuables.

Costs and Benefits 

This additional insurance will probably have a much lower deductible than your underlying policy, but it’s up to you to decide if the extra cost is worth it.

Need some guidance? Reach out anytime to our team at Vick Insurance to make sure you’re not taking on unnecessary risk. You can also check out our social media on Facebook, Twitter, and LinkedIn.

The Truth About Homeowners Insurance

Ask 10 people what standard homeowners insurance covers and you’ll probably get 10 different answers.

Some people think their policy only covers their physical dwelling, when in fact most property insurance goes further than that. Additional structures, personal belongings and even liability protection might also be included.

Then, there are the myths suggesting that homeowners insurance covers situations, it actually doesn’t.

Let’s set the record straight today:

Myth 1: Wear and Tear Is Covered

Fact: Coverage typically includes damage from fire, weather and theft. It does not cover damage due to general wear and tear or neglect. As a policyholder, it’s up to you to maintain your home. This includes making routine repairs and protecting your home from pests.

Myth 2: You’re Safe in Case of Flood Damage

Fact: Although some weather-related damage is covered, such as from hail, other natural disasters may not be:

  • Floods require specific flood insurance.
  • Earthquakes might be covered, but sometimes they require additional insurance.

Myth 3: All Personal Belongings Are Fully Covered

Fact: Homeowners insurance covers your furniture, clothing and other personal items up to your policy’s stated limits. More valuable items like jewelry and artwork typically require an add-on policy to be fully covered. Routinely inventory your belongings to determine if your limits meet your coverage needs.

Myth 4: You Have Protection Against Any Injuries That Happen at Home 

Fact: Your policy’s liability coverage protects you if a guest is hurt in your home. The same is not true for you. If you or a family member are injured at home, it would be covered by your health insurance rather than your homeowners.

Myth 5: Home Businesses Are Part of the Package

Fact: A home business requires business insurance to cover property damage and liability issues.

Need help understanding the ins and outs of your homeowners policy? Give your local agency a call today. Let’s chat.

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