It may be a diamond ring, fine art, an expensive camera or even a coin collection. We all have that special something that’s priceless to us, which deserves to be fully insured.
What you may not know is that the insurance covering your home, rental property or condominium has limitations on these kinds of specialty items.
Not only that, personal property coverage provides protection for your belongings if they are affected by a peril, like a fire or theft. But if a ring’s stone goes missing, or even the entire ring is lost, that is not covered by your typical homeowner’s and renter’s policies.
“That’s why so many people choose to get an add-on for scheduled personal property for their jewelry, fine art, antiques...,” says Andrea McGrath, Owner at Bates Insurance Agency Inc. “Anything that is of great value to them is worth considering adding a rider to their insurance.”
For about $10 to $15 per thousand of the item’s value, the rider, endorsement or floater provides additional coverage for those things worth more than the policy’s limits.
“The benefit of this comprehensive coverage for jewelry, for instance, means that virtually anything that happens to the item _ except for exclusions like intentional damage _ would be covered,” McGrath says. “That includes a broken prong, a missing stone or even if the ring is lost.”
Although insurance policies vary depending on the company, here’s a general primer of items usually limited by your homeowner’s and renter’s insurance:
If you’re unsure whether you need a rider for something, it’s always best to review with a local insurance agent your policy, and your policy’s limits for items, to see if you’d benefit from additional coverage.
To purchase a rider, you’ll simply need to provide your insurance company with a recent receipt or a professional appraisal of the item. Premiums, based on that value, will be for each item covered by the rider or endorsement.
“Nothing can replace the sentiment attached to a ring or other family heirloom,” McGrath says. “But if something is worth a significant amount of money, these riders provide you with the piece of mind that you are protecting your investments.”