Many people think that having a homeowners’ insurance policy is adequate protection. This false sense of security can be costly if you own several valuables that are worth much more than their face value. People don’t realize that valuables often have two “values.” One is the basic value that a similar item can be purchased for. The other value is the appraised value. Knowing the difference is essential if you want to insure your items properly. This article will guide you regarding getting additional insurance for your valuables
Purchase Value Insurance vs. Appraisal Value Insurance
The purchase value is its base value. In other words, you have a small painting that can be purchased at an art store for $50. You have a similar painting that is signed by Pablo Picasso that is worth over $50,000. If you don’t insure the Picasso for its appraised value, you will receive the same compensation for it that you do for the art store painting. If you aren’t sure if something is valuable, call an appraiser and have them take a look at it.
Increase Your Coverage
It’s the holidays, and expensive gifts may be coming your way. If you receive electronics, jewelry, artwork, or any other type of expensive gift, you will definitely need to add these items to your homeowners’ insurance policy. If you have a written or video inventory of the items in your home, include the gifts you receive and take a few photographs of the items and their identifying marks like the serial or model number.
Know about the Items That May Require Extra Coverage
There are several items that may require extra coverage. In addition to the many different electronics and high-end gadgets, you may also want to provide additional coverage for a long list of other items.
- Heirloom/antique jewelry and furniture
- Collectible items
- Fine art (paintings, sculptures, etc.)
- Fine china
- Legal Documents and correspondence
- Antiques of all kinds
- Crystal pieces
- Custom furniture or decorative pieces
Any of these items can be appraised to find out what they are truly worth. This is only a partial list of items that may qualify for additional insurance coverage. Talk to an insurance provider to get a better idea of what other items may be included on the list. Being fully aware of what you have and the fact that it may be valuable is the first step in ensuring you have the right amount of insurance in place.
Insuring your valuables is easy if you know the value of your items. Talking to your insurance provider is the best way to make sure you have sufficient coverage. Your provider may recommend having a few of your items appraised if you are unsure of their actual value. Call our insurance experts at Weeks & Associates Insurance Services and schedule an appointment to review your existing homeowners’ or renters’ policy. During this time, you can update your inventory to include all of the new gifts you received this year.