For special items that might exceed the personal property coverage limits of your homeowners, renters, or condo policy, it’s important to ensure adequate coverage with scheduled personal property (SPP), also known as an insurance “rider” or “endorsement.”
What is it?
A standard homeowners, renters, or condo policy (which we’ll simply refer to as a “home policy” in this article) has a limited amount of personal property protection built in. This reimburses you in case of theft, fire, or other covered loss – but it’s important to read the fine print.
Some policies will only cover a set amount for each piece; for example, you might have $10,000 in total coverage but only $2,000 per item, meaning that that stolen $5,000 diamond ring will still set you back $3,000. Most home policies also don’t cover accidental loss, meaning if you lose the diamond in the kitchen sink, it’s literally money down the drain.
Jewelry isn’t the only valuable belonging to consider – items such as fine art, antiques, cameras, silverware, furs, guns, and musical instruments (like that baby grand piano you haven’t played in years) are also commonly scheduled.
In addition to ensuring that your coverage is sufficient to help you in the event of a loss, an insurance rider has several other benefits. Perhaps most notable is the fact that SPP is covered at replacement cost instead of actual cash value, which means that you would be reimbursed for the full value of an item without losing money on depreciation. This is particularly important for items such as fine art, whose value often increases over time.
You also pay no deductible for a covered loss, even if it’s an accidental loss – which isn’t covered under a typical home policy.
How to Schedule Items
The first step in scheduling an item or collection is to determine the value of each item to be covered. Depending on the company, you may be required to have an appraisal of items valued over $5,000-10,000. Once a value is agreed upon with your insurance company, you’ll pay the appropriate premium and coverage will begin.
We strongly recommend re-appraising high-value items over time, as values can increase drastically with age. A client of ours recently discovered that her wedding set had doubled in value; another found that the painting she’d bought ten years ago for $600 was now worth over $60,000!
Not sure if your current coverage is enough? Call us today at (360) 378-2949, or stop by to talk to one of our agents! We’ll make the process easy and straightforward, and you’ll get the peace of mind you deserve.