Insuring High-Priced Items: What are Your Options?
By Stephen Davis
Special to USInsurance.com
Insurance policies for homeowners
and renters usually cover most of your belongings which includes much of your
jewelry under “unscheduled items.” However, for higher priced jewelry and
valuables like antique art and paintings, you will need to set up a separate
insurance plan to get a good return in event that your items get stolen. In
general, most insurance companies
only pay up to $500 for loss of valuables under those that are deemed
unscheduled items.
Valuables like expensive jewelry falls under the scheduled items category for
specific items using something called the 'Personal Articles Floater.' This is
generally considered a stand-alone policy or it can be merged with a homeowner’s
insurance policy. The coverage through this method is very wide and covers
almost all risks worldwide except for a few special circumstances.
The premiums for insuring higher-priced items may vary from company to
company. The usual practice is to quote rates per $100 of its insured value.
Some companies prefer a graduated scale. This means that expensive items have a
higher quote than lower priced items. In such policies you end up paying more
for your expensive items.
The most important thing is that you categorize your belongings properly.
Make an inventory of your valuable items and then divide them into special items
and general items. Special items include expensive jewelry or artwork that is
harder to replace. In general, list those belongings that are expensive but are
easy to replace.
For the special items, it is best to insure them by listing them separately
under the 'Personal Articles Floater.' This ensures that you will receive a fair
compensation in event of a claim. Such policies treat each item according to its
value and the risks that are most probable to affect it. Though the premiums are
higher for such policies but they are always the best buy.
The general items are best covered by purchasing a general coverage policy.
These policies repay at a fixed rate per amount of items and are lower for this
type of insurance. Most of the items under this category are easy to replace, so
higher payments from the insurer are not necessary. For this reason, insurers
themselves also recommend broad coverage for your jewelry. This makes it easier
for them to handle and easier to make payments efficiently after a claim.
Purchasing multiple insurances from the same company makes you eligible for
discounts and extra services. If the insurance company
for your home and car are separate, it’s probably a good idea to transfer the
insurances to one company because you may already be paying extra on your
monthly premiums.
When looking for an insurance policy for your high-priced items, comparison
shopping is always helpful. Visit at least five or six companies to get a better
idea of the cost and coverage policies. In general, larger insurance providers
have more experience in dealing with multiple items from different categories.
Knowing what you need from your provider will ensure that you find the best
possible rate for your valuables.
Insurance Guide
Auto Insurance
Home Insurance
Life Insurance
Renters Insurance