Watch Out For Limitations On Your Homeowners Policy
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Most homeowners know their insurance covers more than just the physical structure of their house. Furniture, clothing, electronics, and other personal belongings can also be protected after a covered loss.
But that does not necessarily mean everything you own is covered up to the full personal property limit on your policy.
Certain categories of property can have special limits, meaning the insurance company may only pay up to a specific amount for those belongings. Those limits can become an unpleasant surprise if you do not discover them until after a claim.
Special Limits and Cash, Coins and Precious Metals — 3:22
A standard homeowners policy can place specific limits on certain types of personal property. These are not liability limits in the sense of someone being injured and suing you. Instead, they are limits on how much the policy will pay for particular belongings.
The examples discussed here are based on a standard ISO homeowners policy. Individual insurance companies may offer different limits, endorsements, or broader coverage, which is why reviewing your own policy is important.
Cash is one of the clearest examples. The standard ISO policy discussed includes a $300 limit for money, bank notes, gold, coins, and similar property.
That could be a serious problem for someone who keeps a significant amount of cash at home or owns a valuable coin collection. According to the discussion, that limit can apply whether the loss comes from theft, fire, or another covered cause of loss.
Keeping particularly valuable items in a secure location, such as a safe deposit box, may be worth considering.
Valuable Papers, Watercraft and Jewelry — 7:33
Important papers can also have their own limits. Securities, deeds, evidence of debt, letters of credit, and similar documents were discussed with a $2,000 limit under the standard policy.
Watercraft can also have limited protection through a homeowners policy. The policy discussed provides $2,000 in coverage for watercraft.
For someone who owns a boat or Jet Ski, that may be far less than the actual value. A separate insurance policy or additional endorsement may be needed to properly protect the watercraft.
Jewelry is another important area to review. Wedding rings, watches, family heirlooms, precious stones, and other jewelry can easily be worth thousands of dollars. Yet the standard policy discussed includes a $2,000 theft limit for jewelry, watches, furs, and precious or semi-precious stones.
For many families, a single wedding ring could exceed that amount.
Scheduling Valuable Items Separately — 14:02
One way to address special limits is to schedule valuable property separately on your homeowners policy.
This means specifically listing the item and establishing its value ahead of time. A newer item may require a receipt, while an older piece of jewelry or family heirloom may need an appraisal to establish its current value.
Scheduling an item can do more than simply increase the amount of insurance available. It may also provide broader protection.
One example involved a Rolex watch stored in a storage facility that was damaged by flooding during Hurricane Helene. While the general personal property was affected by a flood exclusion, the separately scheduled watch had broader coverage and was insured for the loss.
That illustrates why identifying particularly valuable belongings before a loss can make such a difference.
Silverware, Firearms and Other Valuable Property — 18:04
Silverware, goldware, platinumware, tea sets, trophies, and similar items can also be subject to special theft limits.
The standard policy discussed includes a $3,000 theft limit for certain property in this category. These may not be belongings you think about every day, but inherited or antique pieces can sometimes have considerable value.
Firearms are another important consideration, especially for homeowners with sizable collections.
The standard ISO policy discussed includes a $3,000 theft limit for firearms. For someone with several valuable guns, that could represent only a fraction of the collection’s total value.
An appraisal and documentation may be needed to properly insure a valuable collection. Keeping serial numbers and an inventory of what you own can also make the process easier if a loss occurs.
Know What You Own Before a Claim — 20:26
The main takeaway is simple: take a look around your home and identify anything of significant value.
Jewelry, watches, firearms, coins, antiques, collectibles, silverware, and other valuables may have coverage limits that are much lower than you expect.
Do not wait until after a theft, fire, or other loss to find out.
Call Moore Insurance Services and let us review your homeowners policy with you. We can help identify property that may be subject to special limits and determine whether additional coverage should be considered before a loss occurs.
Coverage limits, terms, conditions, and exclusions vary by company and policy. Review your individual policy and speak with a licensed insurance agent about your specific situation.