In recent years, I have touched on the subject of ensuring you are insuring your home and possessions properly. You don't want to pay for insurance you don't need - but in the unlikely event of a claim, you want to be sure you have adequate coverage to recover!
Now that the holidays are over, it is the perfect time to conduct an updated home inventory according to the Professional Insurance Agents of Connecticut State Inc. (PIACT).
Augusto Russell, CIC, and PIACT's president says homeowners and renters insurance can include coverage for valuable items they may have purchased or received as gifts over the holidays.
Russell says contents coverage is part of a typical homeowners insurance policy, but amounts of coverage vary, and holders may have special coverage limitations on items like jewelry, furs, and fine arts. Russell warns these limitations vary by company and may not be enough to cover the total value of these items.
Extra coverage called personal property “floaters” will provide specific insurance for the value of the insured property. Most insurance companies will require a homeowner to have the items appraised to determine the amount of coverage.
To make sure your items are protected adequately, PIACT suggests:
- Contact your insurance agent immediately. Let your agent know you now have an expensive piece of jewelry or other costly items.
- Have the item(s) appraised. It is important to have the expensive items appraised properly. If you purchase a floater or endorsement, your premium will be based on this amount. In the event of a claim, you will be compensated for this dollar amount.
- Take a picture of the item or items and add them to your home inventory. Keep copies of any receipts, because you may need to forward a copy to your insurer.
- Keep a copy of your insurance policy and the inventory of your home in a safe deposit box - preferably in a secondary location such as an office or relatives home if possible.