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.
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.