Protecting Our "Stuff"
When you lack knowledge about how “stuff” works, you can log on to the Internet and usually find what you’re looking for. There seems to be no end to the information available, though there can be questions as to its reliability. We all have an abundance of “stuff,” and as we enter the season in which we accumulate even more, it only makes sense to understand how to protect it.
You need to know how your insurance works when it comes to valuable personal belongings—things like diamond rings, watches, and furs. Your basic policy will cover these items, typically with a $1500 limit per item, up to a total limit of $2500. You can add an option to increase that amount for a small cost, but keep in mind that your deductible will apply to any loss. In addition, jewelry and other valuable belongings can be covered under a Scheduled Property Endorsement, which can run as high as $1.30 per $100 of value, with no deductible involved.
Other valuable items are covered for all perils in the policy but have a limit of $5000 in cases of theft. These include silver and goldware and firearms and accessories. The theft limit for rugs, tapestries, and wall hangings is $5000 per item or $10,000 total. These limits can be increased as well for an additional premium.
Laptop computers are likely to be on many wish lists this year. They are considered personal property and receive named peril coverage, subject to policy limitations of $5000 for equipment and software under the homeowner’s policy. For broader personal computer coverage, the Scheduled Property Endorsement settles losses on a replacement-cost basis after a $50 deductible. The endorsement covers computers at home and those of students away at school but do not cover losses for electrical disturbances, except for lightning. I would recommend adding the endorsement, as the extra cost is nominal. Laptops may not be covered under a homeowner’s policy if they are left inside a vehicle—and the most common cause of laptop loss is theft from a vehicle.
These descriptions of coverage are common to the policies that I sell. Check with your agent for information that pertains to your policy. tpw