Our office frequently receives phone calls from customers wanting to know if some special items that they own are covered under their homeowners insurance. Many of them are surprised to learn that all home owners insurance policies have limitations on specific types of property that they own.
Some of the items that homeowners can expect to only have limited coverage on include money, securities, watercraft, trailers, jewelry, furs, firearms, silverware, and property owned by a business. In addition, some companies also put additional limits on artwork and collectibles. Each company has a different limit, so check with your insurance company to find out what your amount of coverage is. As a good rule of thumb, we tell our clients that if they have an item valued at more than $1,000 that they expect to be covered by their homeowners insurance, call us first so that we can verify what the limitation is on the item. If the standard homeowners insurance policy does not contain enough coverage for the item, we can always request extra coverage to make sure that the item will be covered in the event of a loss.
If you have an expensive piece of jewelry or artwork that you would like to have covered by your homeowners insurance, you will need to have a current appraisal that you can give to the insurance company to confirm it’s value. Your homeowners insurance agent should be able to refer an appraisal service to you if you need one. The lesson to learn here is to not just assume that all of your belongings are fully covered by your homeowners insurance policy. You should have a good relationship with your homeowner’s insurance agent so that you can call them and inquire about these type of things.