You might be proud of your heirloom engagement ring, or that piece of art that you inherited from a family member. You don’t want anything to happen to it, and that means protecting it in your home. Still, as many precautions as you might take to safeguard these items, you can’t prevent all damage risks. You therefore might want your property insurance, within your renters policy to pay for the damage. However, the exceptional value of these items might mean you need additional coverage from a scheduled item endorsement. Here’s how it works.
Possessions Insurance Limits
Most renters insurance will offer coverage for your personal belongings in the home. These are your responsibility to insure, not your landlord’s. You can insure almost anything under this policy, from your TV to your clothing and furniture. However, possessions coverage limits.
- Your renters insurance will only pay you a maximum amount of money for your losses.
- Policies often will only pay you an amount that equals the cost of an item at the time it got damaged. A 5-year-old couch’s value often is much less than that of a new couch. Your policy might provide you only with a depreciated settlement cost.
- Many policies exclude certain items, particularly those of high values. Or, the policy might place a limit on how much it will pay for certain losses. For example, it might say it will pay up to $5,000 for damaged art, even if you have $50,000 in coverage.
How this Affects Expensive Items
Within the limits of your possessions insurance, you might not be able to insure particularly valuable items. A high-end computer system, jewelry, fur and other valuables might all not receive adequate compensation in these cases. However, you might be able to get around this limit by scheduling that item on your policy.
Setting a Scheduled Item Endorsement
If you schedule an item on your possessions insurance, you essentially list that particular item and its declared value on the policy. The insurer will then agree to pay a special amount of money for that item, up to its replacement cost value. In many cases, scheduling the item might also eliminate the need to pay a deductible for the loss.
To schedule an item, you will usually need to prove its value to the insurer. For example, you might have to provide the receipt for a piece of jewelry. Or, you might need to have the value of the item appraised and documented by an approved professional. Once you can prove such documentation, the insurer can then codify your policy to provide such coverage for such items.
Also Read: Understanding the Cost of Your Rental Home's Possessions