When it comes to homeowners insurance, there are many terms that can appear confusing. One of these is scheduled personal property insurance and coverage. This mile-long term may sound incredibly complicated, but it’s actually a very simple concept to understand when considering homeowners insurance coverage.
Scheduled personal property coverage is an option available to most homeowners that protect that property not necessarily covered on a standard policy. This property can include items of value such as antiques, paintings, expensive jewellery and fine furs.
How Adding Scheduled Personal Property To Your Policy Can Benefit You
There are a few advantages to adding scheduled personal property coverage to your policy. One of these is the way in which these valuable items are covered. Unlike a standard homeowners insurance policy which covers items at cash value, a scheduled personal property endorsement covers the replacement cost of your valuable items. This is an important distinction because replacement cost means that you will be reimbursed based on the appraisal value of your items. Cash value of an item results in reimbursement but subtracts depreciation of that item for every year of its age.
Another benefit that scheduled personal property coverage has over a regular policy is that more causes of loss are covered. Virtually any threat to your items can be covered by adding scheduled personal property coverage to your homeowner’s insurance policy. This means that reimbursement can occur even if all you lost was a bracelet.
Perhaps one of the best benefits of scheduled personal property coverage is the fact that there is no requirement to pay a deductible on any of the items you wish to be covered. However, you may find that your insurance company does place a limit on the dollar amount that can be covered by scheduled personal property insurance.
What Do You Need To Do To Get This Coverage?
The procedure to obtain scheduled personal property coverage may very well differ from one insurance company to another. But the general guidelines for obtaining scheduled personal property coverage require the owner of items to provide some form of proof that the items they wish to be covered are worth as much as they say they are. This can be done by getting an appraisal for the items. It can also be completed by presenting your insurance company with a bill of sale for the items you wish to be covered.
The Dollar Limits and Caveats
The special coverage afforded by scheduled personal property endorsements can reach as high as $50,00 per class of the item. The class simply refers to the category that your items fall into, such as jewellery containing precious stones vs. that which contains stones of a semi-precious nature.
Some insurance companies offer scheduled personal property coverage as blanket coverage. This means that items you have indicated as valuable are covered as a group. This can be beneficial for those with a high number of items, as there are no individual appraisals required with blanket coverage.
As stated previously, there are no deductibles required to be paid by those who choose scheduled personal property coverage. However, it will cost extra in the form of premiums. How much a homeowner pays for scheduled personal property coverage will vary, depending on the type, class and amount of items they need to be covered.
Homeowners may find the cost to cover valuable items will differ between insurance companies. The best way to find out how much you may pay on average for scheduled personal property insurance coverage is to obtain quotes from several insurance companies and then calculate the average.
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