Is Your Special Personal Property Covered?
When you selected a homeowners insurance policy, there were probably a million things on your mind. That’s likely especially true if you selected your policy at the same time as purchasing your home. While you were discussing your policy, you probably were also talking with realtors, movers, the title company, and contractors, and still trying to fulfill normal responsibilities.
When you choose a policy, there are so many questions to answer about your home’s physical structure. You probably are not thinking about your great aunt’s diamond brooch or the antique rifle you inherited. You might not remember the family heirloom that would be tens of thousands of dollars to replace. That’s why special personal property coverage exists.
What Is Special Personal Property Insurance?
For many people, there are a few valuable items in their homes that require extra coverage to ensure they are protected in case of an accident, natural disaster, or theft. Special personal property insurance can help cover the special items in your home that are not fully covered by your standard home insurance policy.
Extra personal property coverage, additional coverage with a rider, scheduled personal property (SPP), and special property protection insurance are a few terms used to describe this type of increased coverage. You may need additional coverage if you have valuable possessions that may exceed the coverage limit in your home insurance policy.
How Does Extra Coverage for Valuables Work?
If you are a homeowner, your home insurance policy includes coverage for both the structure of your home and the contents of it. Personal property coverage is the name of the insurance that protects the contents of your home. For example, if you had a house fire, this coverage would cover the cost of the items damaged or destroyed up to a certain amount. Typically, personal property coverage will equal about 50-70 percent of the amount of coverage on the home structure.
Your policy likely names limits on individual items or categories within the contents covered by personal property as well. So for example, there may be a maximum limit for jewelry or art. If your policy only covers up to $1,500 per jewelry item and up to $3,000 total for all jewelry, your engagement ring or diamond solitaire earrings may need more coverage. Most policies also name specific perils or incidents that are covered, like fire, theft, tornadoes, etc.
Types of Additional Coverage For Personal Property Insurance
Some people find that the limits on personal property items or categories of items do not provide sufficient protection. In this case, you would want to add additional personal property coverage to your policy.
There are two primary ways to add additional special personal property coverage:
Coverage is added via a special scheduled rider or endorsement for a specific item. For many of our clients, this is the best course of action for protecting their most precious assets. If you have a particularly valuable piece of artwork or a valuable antique you would like to protect, a rider will ensure the item is adequately protected. Additionally, this will provide all-risk protection for the item, providing additional protection that is not included in the standard homeowner's policy.
Coverage is added by increasing the limits of liability for particular categories. If you have a few items within a specific category of personal property, this might be the best way to insure your possessions. Clients with collections of valuable purses, a few pieces of jewelry, furs, or memorabilia often choose increased personal property protection and appreciate the peace of mind. There are limits to the amount you can increase coverage for each category, but the Streller team is always happy to discuss and help determine the right coverage.
Additionally, if your home insurance policy includes only specific perils, you may want to consider open-peril (or all-risk) coverage. In case of a flood or other peril, your valuables would be protected.
With all the options available, the best way to determine the coverage you need is to talk with a member of the Streller Agency team. We work with Oklahomans every day to protect their most valuable assets, and we would love to help you too.
What Items Need Special Personal Property Coverage?
Jewelry
High-value, high-quality jewelry may need special protection and coverage beyond what your standard home insurance policy includes. Specifically, engagement rings, diamonds, and other precious stones may need extra coverage. The average amount spent on an engagement ring in 2023 is about $6,000. That likely exceeds the limit included in the standard policy.
Firearms
Your homeowner’s policy likely covers liability for firearms. However, if your guns or collectible firearms are damaged, stolen, or destroyed, they are expensive to replace. Additional personal property coverage may be necessary, especially if you own multiple or valuable firearms.
Electronics
More and more homeowners are increasing their amount of coverage for electronic items. Specifically, those who have purchased or built “gaming computers” or have high-value entertainment systems and other expensive electronics may consider purchasing more personal property coverage.
Art
Purchasing original artwork is an investment. If you own paintings, sculptures, or other one-of-a-kind items, an appraisal, and increased special personal property coverage may be necessary.
Family Heirlooms, Antiques, and Rugs
The value of antiques and rugs is often forgotten when considering the cost of the contents of your home. Hand-tied silk or other fine rugs can sell for tens of thousands. However, the limit on many policies for rugs and antiques is only a few thousand. Similarly, special personal property coverage should be extended to protect your collection if you have a collection of silverware, china, or other valuable heirlooms.
Furs and Designer Handbags
Often valued at hundreds or thousands of dollars, fine furs can be insured beyond the standard policy. You can also insure designer handbags with additional coverage. Luxury purse insurance is typical and protects your purse against damage and theft. If you have spent thousands on a designer handbag, you should guarantee it is fully covered.
Collectibles and Memorabilia
Maybe you own a former president’s briefcase, a first-edition Hemingway novel, a Mickey Mantle rookie card, or any other valuable memorabilia. Our team recommends you take the necessary precautions and insure these items with special personal property protection. These items are precious and irreplaceable, but if the worst happens, you should ensure you are protected.
If you are interested in special personal property protection, you should add it to your home insurance policy and often your renters insurance policy. The Streller Team is here to help. Contact us today for a quote.
