Monthly Archives: February 2013

When should valuable articles, such as jewelry, furs & fine art be specifically listed in a separate personal insurance rider?

By Carollee Cabot, CIC, CPIA

The typical homeowner’s policy has limitations on the coverage available for losses due to theft, breakage, or misplacing or losing certain articles. Even  prestigious insurance carriers have limitations on what they will pay for a particular category. In addition to the limited coverage available, the policy deductible will apply.
Examples of typical limitations are:

  • Jewelry $5,000
  • Furs $5,000
  • Silverware $10,000

For fine arts, some policies do not have a limit, but will not pay to replace with a similar piece of fine art, but with a new item lacking antique value.
Claim Example:
Your home is burglarized and the thieves take electronics, silverware, furs & jewelry. Your policy has a $10,000 deductible, and none of your items were scheduled.

  •  Silverware – limit is $10,000, and your loss was $8,000
  • Furs – limit is $5,000, and your loss is $4,500.
  • Jewelry – limit is $5,000, and your loss is $50,000

The full amount of the loss is $62,500 less the $10,000 deductible or $52,500. However, because of the policy’s limitations, the carrier will only pay $17,500. You would be out-of-pocket $45,000.

When valuable items are scheduled on a valuable articles floater, no deductible is applied and the full, scheduled value of the items is paid. In addition, coverage is worldwide, so items taken on vacation will still be covered.
While one of the most frequent Homeowners’ claims is stolen or misplaced jewelry, some other items you may want to consider scheduling include a wine cellar, collectables, coins & stamp collections, antiques and breakable valuable items such as a vase. If you have any of these items in your home, talk to your insurance agent about scheduling them on a floater.