vintage ring featured on the left ring fingerAs most homeowners know, homeowner insurance policies are important because they provide protection and coverage for their personal property.

But, did you know that there are some instances where your homeowners insurance is limited? Did you also know that if something happens to your personal property (ie it’s stolen), you may still be responsible for paying your deductible?

Unless you have chosen to have specific items to schedule, or have noted in your policy to cover certain items for a particular amount, you may still be responsible for paying your deductible.

It’s common for homeowner to choose a high deductible to reduce their premiums, but that means that you will not receive payment if your deductible is more than the amount of the loss.

Here’s an example – let’s say a vintage stone ring is stolen from your window sill. While it’s not as valuable as a diamond ring, it still is valued at $400, not to mention it was your favorite ring. Unfortunately, your deductible is $500 and you will be stuck with the payment to replace your ring.

So, how can you avoid this?

Here are 2 ways to make sure your valuables are covered, no matter what their value.

Replacement Cost Coverage

With this coverage, your insurance will pay the cost to replace (or in another instance repair) your ring without factoring in any deduction for depreciation. The amount of money you receive will not be any more than the replacement cost (or the cost of full repair) at the time of the loss

Agreed Value Coverage

This is coverage that you would set up with your agent, designating a specific amount for specific possessions. In this case, if you had purchased this coverage for your ring, you would receive the full $400 amount. With scheduling specific items, you will have broader coverage without a deductible.

Here are some examples of other items that can be scheduled specifically:

  • cameras
  • collectibles and antiques
  • coins
  • fine art

Be sure to talk with your insurance agent to make sure your valuables are covered, should anything happen to them.