The post Why Should I Schedule Items on My Homeowners Insurance Policy? first appeared on Carson Insurance Agency.
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The standard limits may be enough for the typical homeowner but if you own more property in a certain category it may be necessary for you to schedule individual items to make sure they’re covered. On most homeowner policies, an endorsement exists to schedule individual items and in most cases, the coverage is available and commonly offered with the following three benefits.
The endorsement can be very affordable as well. For example, to insure a $5,000 engagement ring, you could expect to pay somewhere around $1 per $100 of value or around $50 per year. To add your items to your policy you’ll need a receipt or a recent appraisal of the item. Ask your agent how the coverage will pay at the time of loss. Most policies are actual cash value which means they will pay the cost to replace the item minus any depreciation. Other policies can offer an agreed value settlement, which means that you and the insurance company have agreed on a value upfront and that value will be paid at the time of the loss. With a policy that pays actual cost value, it’s not a good idea to insure an item for more than its worth. The value you have insured the item for is a limit, but it doesn’t guarantee that you will get that much in a loss. If in 2017, you insure your 2012 Macbook Pro for $2000 (what you paid for it in 2012) and you have a loss, the settlement may be closer to $700 due to depreciation. If you’re insuring it for $2,000 you’re paying unnecessary premium!
Your homework assignment is to look at your home, condo, or renters policy, or contact your agent and check the sub limits to make sure you’re adequately covered. If you need more coverage, have a discussion with your agent on what makes the most sense for you. I can promise you that it gives no agent pleasure to deny the full payment of your claim because an item exceeds the maximum sub limit. In fact it may be the least satisfying part of our jobs.
The post Why Should I Schedule Items on My Homeowners Insurance Policy? first appeared on Carson Insurance Agency.
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