INSURING YOUR POSSESSIONS

	Insuring Your Jewelry, Furs, Silver, Antiques, etc.
	If Your Home Burned to the Ground, Could You Remember Every One of Your Possessions?
	Do You Have a "Collection" in Your Home? Is it Properly Insured?

Insuring Your Jewelry, Furs, Silver, Antiques, etc.

Were you aware that most Homeowners policies contain special limits on the amount of coverage for items such as jewelry, furs, antiques, silverware, collectables, guns, etc.? These limits often include a $1,000 maximum for any one theft claim on jewelry, watches or furs, or a maximum of $2,500 for the theft of silverware. Since the average value of an engagement ring now approaches $2,000, you could find yourself seriously under-insured in the event of a loss.

Few things can be more unsettling when it comes to insurance than the feeling you have not received the full value of your damaged or stolen property after a loss. This is especially true when the loss involves these kinds of personal possessions whose values are difficult to set or can change over a long period of time. A silver service for example may be worth significantly less than its original purchase price due to a drop in the market price of silver.

How can a schedule help properly insure this type of property?

A "schedule" is simply a way of specifically listing valuable items on your homeowners, condominium or tenants policy. The "schedule" includes a brief description of each item and its dollar value. For certain items of property such fine arts or high valued jewelry, a professional appraisal of the item or a copy of the sales receipt is sometimes required. This helps assure the amount of insurance listed on the schedule accurately reflects its current value. You're then sure that in the event of a covered loss, the amount of your insurance is enough to fully cover repair, replacement or cash payment of the item.

What other benefits does a schedule provide?

There are other advantages to insuring personal property on a scheduled basis. First, scheduled property is not subject to the policy deductible. Second, coverage for the scheduled property is actually broader than the "named perils" such as fire, theft, and vandalism provided under your basic policy. This broadening would include most types of accidental damage to the scheduled property which you might not normally consider. For example, a schedule would provide coverage for a diamond which has fallen out of its setting, or an antique table top damaged by water leaking from a flower vase.

How much would this added coverage cost?

The cost of this valuable coverage is quite affordable and depends upon the item being scheduled, such as fine arts, jewelry, furs or silverware.

If you think you may have personal items to schedule, check with your independent agent. They can explain "scheduling" in more detail, and discuss with you whether or not it is to your advantage to "schedule" any of your valuables.

If Your Home Burned to the Ground, Could You Remember Every One of Your Possessions?

Your homeowners insurance provides protection for covered personal property in your home, up to a limit which you have selected with your insurance agent. In the event of a total loss, you would be expected to provide your insurance company a list of all your damaged or destroyed possessions, along with the estimated value of each item.

Would you be able to compile such a list? Would you trust yourself to remember every item in your home and its value? If you're like most people, it would be very difficult.

One way to be sure you would remember is to make a written list of every item. By grouping your belongings by room, you will be less likely to overlook something. When you have completed your list, put a value on each item.

Determining Values

The standard homeowners policy is designed and priced to pay the Actual Cash Value of personal property covered under the policy. Actual Cash Value is the cost it would take to replace the item, less depreciation for age and condition. Some companies, Central included, make available a Replacement Cost Coverage which provides for the replacement or repair of covered personal property - regardless of depreciation. When you're making an inventory of your property, consistently use either the Actual Cash Value or the Replacement Value, depending on the coverage provided under your policy.

Central has available, free of charge, a Household Inventory brochure which provides a guideline for listing your household possession. If you would like to receive a free copy, you may do so by writing: Marketing Department, Central Insurance Companies, 800 South Washington St., Van Wert, OH 45891. You may also click on this icon    to download this brochure to your computer right now!

A Picture is Worth a Thousand Words

Another way to keep track of your possessions is by taking photographs of each room and the contents. Take a picture of each wall, and be sure to open closets and dresser drawers to help remind you of the contents inside. Its always a good idea to have a photo of higher valued and unusual items such as antiques. Still another method of recording your possessions is to videotape the contents of each room.

When You've Completed Your Inventory

Keep a copy of your list, photos or videotape around the house if you like, but make sure the original inventory is kept in a safe place, off premises. A bank safe deposit box is a good idea. Then, once a year, recheck your list. It is a simple process to update with the new items you've added over the year.

Do You Have a "Collection" in Your Home? Is it Properly Insured?

"Collectibles" are both fun and big business. People collect everything, including baseball and sport cards, comic books, movie posters, beer and liquor bottles, etc. It's not unusual for collections to be worth thousands of dollars.

How do you know what your collection is worth? Should your collection be insured and if so, for what value?

If you own or acquire something you consider valuable, it is wise to immediately notify your insurance agent. In order to determine the value of the item or collection, you may want to obtain an appraisal from a professional collector or appraisal firm.

Just what type of coverage you need depends on the value of the collection. Often, the insurance coverage provided in the standard homeowners policy is sufficient, but you may want to insure the item separately or "schedule" the item.

If you have any questions about insuring your collectibles, check with your agent to make sure you have sufficient coverage.

The policy coverages described above are in the most general terms and are subject to the actual policy exclusions and conditions. For specific coverage details and policy exclusions, refer to the policy itself or contact a Central Agent.