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Got Valuables? Know How To Insure Them!

While many Americans have automobile, health, homeowners, and life insurance, often times people don’t think of the many other things in their lives that could benefit from being insured. Getting the cash you need to replace something valuable isn’t always that easy. Have you experienced a toddler flushing a valuable piece of jewelry down the toilet? How about a having your great-aunts vintage silverware stolen in the middle of the night by an unexpected intruder? Perhaps you have experienced being on vacation and the loss or breakage of a valuable camera or laptop? While you do have the option of filing a claim through your homeowners insurance policy, chances are pretty good that you won’t end up recouping the total value of the item you had lost, stolen, or damaged after you have paid your policy deductible and all is said and done. In fact, you will most likely receive a fraction of what you paid for the item or what it is worth considering it’s FMV (fair market value).

Should you experience a lost or theft of valuable, you want to get reimbursed the “fair market value”

When it comes to valuable items like silverware sets and jewelry, most homeowner’s insurance policies carry limited or no coverage. If anything, a person will get somewhere between $1000 and $2000 for the item they claim. With that, accidental loss isn’t even covered with some policies. Often times first time homeowners don’t realize that having homeowners insurance doesn’t automatically mean that everything inside that home is covered. To take it a step further, many newly married couples think that those beautiful (and expensive) weddings rings they have purchased will be covered by their homeowners insurance. That’s not true.

Photo Credit: Somma via Compfight cc

The fact of the matter is that that you should seriously consider purchasing extra insurance, often times called a “rider” to cover jewelry, electronics, one-of-a-kind works of art, stamp or other collections, your aunts silver set, and grandma’s good china. It’s a simple process and will not only give you peace of mind if something happen to those precious items, but will help you recoup (at least) some of the costs associated with your most beloved valuables. Here’s how:

  1. Select the item(s) you want insured,.
  2. Order an appraisal on that item to provide to your insurance company. (Check out findanappraiser.org to find one in your area. Look for one that charges an hourly report for their rate.
  3. Contact your homeowners insurance provide and request a “personal property-floater” to cover those specific items should they be lost, stolen, or damaged. You can count on spending anywhere from $100-$1,000 annually for the floater.
  4. Be sure to store all receipts and appraisals for the items you have insured in a fireproof box or safe. Should you need to file a claim on those particular items, you will need to provide your insurance company with that paperwork.
  5. If you do find yourself needing to file a claim (hopefully you won’t), do it as soon as possible to make sure you get the full value of your item.

For more articles on how to budget for your fiances, go to Approved Money Centers blog and read about everything from budgeting to planning your family vacation. AMC offers short term payday loans to help out when there is a financial emergency, unexpected cost, or just too much month for your money!

 

 

 

About Laura J Solomon

Laura is a school counselor and blogger. Her own personal financial experiences as well as a deep interest in psychology have encouraged her to delve deeper into the subject of money and emotions. She has her Masters in Counseling and writes for various financial websites. You can find her at google.com/+LauraJSolomon or on Twitter @laurasnoox.
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