Holders of basic insurance for homeowners or renters often assume that these policies will cover the cost of replacing high-value items should they be lost, stolen or damaged. However, this may not be the case. Most basic policies have low liability limits and provide protection only in the event of certain named perils. Some belongings are also frequently excluded from coverage, including rare coins and antiques. Therefore, it is wise to invest in a special policy for these items.
Applying for Valuable Item Insurance
The first step toward acquiring valuable item insurance is to create an inventory of the articles that need to be insured under the policy. The catalog should include detailed descriptions of each piece. Receipts and certificates should also be appended. Belongings of especially high value should be appraised to make sure that their full replacement cost is covered by the policy. Using this documentation, an agent can provide an accurate estimate of the cost of insuring the items.
Choosing Between Blanket and Floater Coverage
The second step is to choose the type of policy needed. Blanket coverage can be purchased to insure an entire category of items, including coin collections, fine art or jewelry. Conversely, a floater or individual rider will cover only one high-value item.
Finally, review your inventory and coverage annually. New pieces may have been acquired or items may have increased or decreased in value. Completing this assessment ensures all valuable belongings are properly protected, and the policy premiums are accurate.