Personal property coverage is a fundamental component of a homeowners insurance policy. This coverage protects your personal belongings, such as furniture and clothing, within your home, providing financial compensation up to a specified limit in the event of theft or damage caused by covered perils. However, for high-value items like jewelry, fine arts, or musical instruments, it is advisable to consider adding a scheduled personal property endorsement to your policy to ensure they are fully protected.
Scheduled personal property coverage
Scheduled personal property coverage is an optional feature within a homeowners insurance policy that allows you to separately insure valuable items beyond the coverage provided by your standard personal property policy. Certain items, such as jewelry, watches, and artwork, may have limited coverage under the general personal property policy, leaving them vulnerable in the event of a claim. By adding a rider or endorsement for these items, you can enhance their protection under your home insurance policy.
Some insurance companies offer a comprehensive package with increased blanket coverage that eliminates the need for individual appraisals. For example, if your basic policy includes up to $1,000 in coverage for jewelry, you may have the option to increase this coverage to $5,000 or more to encompass all jewelry items. On the other hand, a scheduled personal property endorsement allows you to itemize your high-value possessions with specific values assigned to each piece with wider range of coverages. To utilize this option, you will likely need to provide an appraisal or proof of value.
It is important to note that the scheduled personal property endorsement is an optional add-on, similar to blanket coverage, and will incur an additional cost. By carefully considering your valuable possessions and their insurance needs, you can ensure that your personal property is adequately protected in the event of unforeseen circumstances.
What does scheduled personal property cover?
Scheduled personal property coverage varies by insurance company and policy type, but generally, most homeowners insurance policies have limits and exclusions for certain items. For instance, if a valuable item is stolen, there may be a cap of $500 or $1,000 for replacement, and the homeowner may have to pay the policy deductible. However, by scheduling personal property, individuals can ensure coverage for the full value of their items both on and off their property.
One of the advantages of a scheduled personal property endorsement is the additional coverage it provides beyond standard personal property coverage. With scheduled personal property, policyholders typically receive:
Coverage for accidental loss, also known as mysterious disappearance
Coverage for accidental physical damage
A $0 deductible for scheduled personal property claims (unless a higher deductible is chosen)
For example, if an engagement ring is lost or misplaced, standard homeowners insurance may not cover the cost. However, if the ring is scheduled, the policyholder may be able to recover the full value without having to pay a deductible. Scheduled personal property is usually covered under an open perils basis, meaning all types of losses are covered unless specifically excluded in the policy documents.
Types of valuables covered by scheduled personal property
The following list is not exhaustive, but it includes the most common personal property items that can typically be scheduled for their full value. It is important to review the limits on your homeowners insurance policy and consider scheduling these items if they exceed those limits:
- Antiques
- Bikes
- Cameras
- Certain electronics (laptop, media equipment, etc.)
- Collections (cards, coins, stamps, etc.)
- Fine art
- Firearms
- Furs
- Jewelry
- Medical devices
- Musical instruments
- Rugs and tapestries
- Silver or goldware
- Sporting equipment
It is advisable to consider scheduling high-value items that are not fully covered under a standard homeowners policy. For example, if you wear your wedding ring and lose the diamond, it may not be covered under a homeowners policy. However, scheduling your ring could provide that coverage. Ultimately, it is a decision to be made between you and your insurer to determine what items are worth scheduling. In many cases, sentimental items of lower value may not be worth scheduling.
Are you in need of a scheduled personal property endorsement?
If you possess valuable items such as a high-end bike, expensive jewelry, or antiques with sentimental value, it may be wise to consider purchasing scheduled personal property coverage. It is important to carefully review the policy sublimits for these items in your homeowners insurance policy to determine if their value exceeds the sublimits. For instance, if your jewelry is valued at $15,000 but your coverage is only $1,500, scheduling these items may provide you with the broader coverage offered by the endorsement.
Alternatively, you may want to explore blanket insurance coverage with a higher limit. Increasing the coverage for jewelry from the standard sublimit of $1,500 to $3,000 on a blanket policy could be a suitable option. Blanket coverage might prove to be more cost-effective than individually scheduling each item. However, it is advisable to consult with your insurer to ascertain if the items you wish to insure are eligible for coverage under a blanket policy.
If you opt not to schedule your personal property or obtain blanket coverage, any claims made will be restricted to the same covered perils as outlined in your homeowners policy. Additionally, you will be required to pay the homeowners policy deductible if a claim is filed, impacting the amount you receive for replacing or repairing the item.