After the holiday season, many like to start the New Year by organizing new gifts and purchases and cleaning out the closets. As each year goes by and your needs continue to change, it’s easy to forget to update your insurance policy in the process. There is no better time than now to make sure both your new, as well as old belongings, are insured properly on your homeowners policy.

It might surprise you to know that an unendorsed homeowner policy has limits of coverage for theft of certain types of personal items such as jewelry, watches, furs, and firearms. Coverage for items like coins and stamps can be limited to a special limit of coverage no matter what the cause of damage is.

A common limit for theft of jewelry, watches, furs, precious and semi-precious stones on a homeowners policy is $1,500. Not to mention, your policy deductible would apply to this type of loss. If you misplace those items opposed to a loss by theft, you may not be covered at all under your normal insurance coverage.

No need to worry though, different types of additional coverages are available. Many carriers offer endorsements that will increase the limit of coverage for losses to jewelry, money, firearms, furs, and more. Other additional coverages are available for purchase to cover a particular item on your policy at a specific amount. This type of coverage is called a scheduled personal articles endorsement.  A personal articles schedule provides broader coverage and in most cases does not include a deductible.

Here are some steps to make sure your valuables are properly insured in the New Year:

• Take inventory of your belongings. Make a list of valuable items that you have and make sure items you no longer own are not on your policy if you have an existing scheduled property endorsement. Be sure to determine the current value of your items.
• Discuss with your agent what types of additional coverage may be right for you. Your independent agent may require an appraisal for some items. This ensures that there is no discrepancy in the value or replacement cost of the property.
• Consider coverage for items such as electronics, musical instruments, and artwork. Cell phones, laptops, cameras, and many other types of property can be insured on a personal articles coverage endorsement.

If you experience a loss, additional coverage for certain property items can save you a lot of trouble in the long run. The more accurate and updated your policy and coverages are, the easier it is for your claims to be handled quickly and efficiently.

Resources:

ISO Forms: HO0003 05/11, PM0009 12/02, PM0010 12/02

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