When you buy your homeowners insurance, you won’t only insure the house, but you’ll also insure the items in the home. As much as the structure, your possessions have value, and you don’t want to lose them. You’ll likely be glad to know that your homeowners insurance can help you protect your possessions. Still, coverage will have its limits. Therefore, for the most precious belonging, you might need to get scheduled possessions coverage for the items. What is this insurance? How can you use it to your benefit?
Homeowners Insurance Possessions Coverage
When you buy your homeowners insurance, you’ll probably opt to purchase possessions coverage within it. Possessions coverage applies to the insurable value of your belongings.
So, if something were to come along and damage your home, it could damage your possessions. For example, a fire could break out. If it burns your belongings, you will want to replace them.
That’s where your possessions insurance might be able to help you. Coverage might pay for replacements or repairs to damaged furniture, clothing, electronics and even food in the pantry. Therefore, you won’t have to spend excessive amounts of money in your recovery.
However, possessions coverage has its limits. In many cases, it will only pay a maximum amount of money for your items. The coverage might also impose other limits, such as by saying it will only provide a maximum of $1,000 for lost jewelry.
You likely realize that limits like these might make it harder to replace items of value. For example, jewelry, art, furs or expensive electronics might not receive enough protection from your basic coverage. As a result, you might have to schedule these items on your policy.
Scheduling Coverage on Your Belongings
By scheduling items on your homeowners insurance, you will extend coverage directly to their values. When you do so, the policy will agree to provide you with that item’s replacement cost in the event that you lose it. This is often a good thing, because many standard policies will only pay the depreciated cash value of items that you don’t schedule.
Not only can scheduling items on your insurance add extra value to claims, doing so can also insure these items against additional losses. For example, standard policies might not cover the loss of a piece of jewelry accidentally washed down the drain. However, by scheduling that item, you might be able to recoup the lost costs.
When you buy your homeowners insurance policy, first ask your agent at 844.926.0860 about how your standard coverage addresses items of value. Afterwards, see how you can go about scheduling items, as needed, to increase protection for these items.
Also Read: Will Home Insurance Cover Roof Damage from Wind?