Expensive gifts for loved ones or friends can be nerve-racking – what if the person doesn’t like it? What if they lose it? What if they break it and can’t afford to get it fixed? These are all common fears for people around the holidays.
An expensive gift could also mean an expensive insurance policy, where the cost of repairing or replacing something becomes even more costly. However, the fear of spending too much on a loved one isn’t just limited to expensive presents – the money invested in other unprotected valuables in your home could sneak up on you at other times of year too.
That’s why we have some simple tips to help you know whether it’s financially worth insuring that holiday gift, or other expensive valuables, and how much money you could save by buying (or not buying) insurance.
What is scheduled property?
Scheduled personal property insurance is a homeowner’s policy that allows for some extra peace of mind when it comes to insuring your valuables. The coverage limit on specific items usually increases, removing the deductible for their loss.
Scheduled property insurance insures against non-covered events. For example, if you bought your loved one an expensive piece of jewelry and they dropped it on the ground, it would be covered under scheduled property insurance. However, if someone came in and stole it from them, that event would not be covered by this type of policy since it would be covered under another policy.
Why do I need to schedule valuable items?
You might be thinking to yourself, “Is my personal property not covered by my homeowner’s policy?” Scheduling items ensures that the full value of your belongings is taken into consideration during their insurance claim.
Usually, when your valuables are only covered by your personal property coverage, there are limits in place- between $2,000 and 3,000 for items of a certain type. For example, jewelry has a limit of around $2,500 for all items on a standard homeowner’s policy. Additionally, this is usually capped at $500 if the item is damaged or stolen outside of your property.
If you want to ensure the full value of your belongings are accounted for during an insurance claim, it is important to schedule them with our team! Our agents will help you decide what should be included in your policy and make sure that all valuable possessions are protected.
How much does scheduling a property cost?
The cost of scheduled items insurance is around 1% of the item’s value. For example, if you have an antique grand piano that is worth $15,000, then the cost for the policy term would be $150.
Who needs scheduled property coverage?
If you know that some of your items exceed the sub-limits on your homeowners’ insurance, or if you self-insure, you should consider scheduling them.
Common possessions that most insurance companies allow as scheduled property include:
- Expensive Clothing (Ie: Tailored suits and Furs)
- Music Instruments
- Silverware and Gold Ware
- Fine Arts
- Sports Equipment
- Rare Collectibles (Coins, Books, Cards, Stamps etc.)
Scheduling an item is a great choice for professionals who often have to travel with their valuables. Whether you’re a photographer traveling with your expensive cameras or a musician traveling on tour with your prized Zara violin, you’re covered no matter where you are in the world.
How do I schedule my items?
Prior to scheduling your most important valuables, it’s necessary to look at your current policy limits.
If you think that some of your items might exceed these limits, or if you might need them while traveling, it may be worth scheduling them. Some companies do not offer this endorsement but allow for the addition of scheduled items which can then increase the default coverage limit on certain item types.
Insurance companies often require item description and valuation when scheduling services. This can be done through forms or an appraisal, depending on the price of the item. Usually, if the price exceeds a certain amount an appraisal is also necessary. This process can be time-consuming and frustrating, so it is important to have an insurance agent who can help you navigate these waters.
Shopping for insurance and figuring out what coverage is best for you can be a tough and time-consuming task. That’s why Portland Insurance is here to help! We’ll make sure to give you all the information, advice, and assistance necessary to ensure that your coverages are exactly what you need.