With the season of giving upon us you may give or receive something special (and worth more than a few bucks). I am often asked how certain gifts are covered on a home, renters or condo insurance policy. We call your ”stuff”, personal property. If you were to flip your house upside down, everything that falls out is considered personal property.
It's important to know that all types of property insurance have limitations and exclusions. Some of these limitations relate to certain types of property when a claim involves theft. Jewelry, watches, furs, guns, gold ware, silverware, collections, fine art and computers usually have coverage only up to certain dollar amount, commonly about $1,500. If you were to get a new set of diamond earrings and a month later they were stolen from your home, the maximum amount the insurance company would reimburse you is $1,500. So if those earrings cost $5,000 you are taking a $3,500 loss. Every company is different and this amount varies so discuss the specifics with your agent.
If you need more coverage you can increase the amount of this limitation or you can itemize your valuables and insure them for their true and agreed value on a “personal articles floater”. This is coverage solely for your special and high value belongings. This type of insurance is much more affordable than you would think. Sometimes, depending on the value of an individual item, an appraisal will be required.
Enjoy your wonderful new gifts with peace of mind!