As the holidays come to a close, individuals across the country are likely enjoying the gifts they received from their friends and family members, including big-ticket items such as new jewelry or electronics. With these big items comes the question of whether or not you should insure them. To mitigate the financial impact of loss or theft you will want to insure these valuable items as quickly as possible. This takes a bit of thought on how to do so, so let’s take a look at some of the more important matters involved.
The question of existing insurance
Kiplinger, a personal finance publication, explains that many individuals will believe that their homeowners insurance policy covers all of their jewelry and other expensive items kept in the house, but this is not always true. The news provider pointed out that most homeowners insurance policies will only protect about 50 percent of personal belongings, including jewelry, furniture and other items in the house.
The shortage of coverage can translate to massive losses in the event of a fire, major burglary or other threat, especially if you are storing a lot of highly valuable items.
Elements of coverage
Investopedia, a website devoted to investment and finance best practices, uses the example of wedding rings to outline its suggestions on insuring a piece of valuable jewelry. According to the news source, the first step is to get a professional appraisal to ensure the item is properly valued.
As for cost, Investopedia states that a piece of jewelry valued at about $6,000 will translate to an average of about $80 to insure annually, with policyholders paying between $1 and $2 for each $100 of value the covered item has. Speak to your independent agent about the other considerations involved in insuring your valuable jewelry and new big-ticket items following the holidays.
Covering all post-holiday valuables
Depending upon which types of items you receive over the holidays, there are various approaches to find coverage. For example, The New York Times, a major publication, explains that it is best to schedule (i.e., insure an item by listing it on the policy) items when you have a lot of highly valuable ones, rather than grouping them together.
According to the Times, insuring each valuable individually within the schedule will certainly be more labor intensive, as it demands appraisals and other activities that umbrella-style coverage would not. However, it is worth the effort when various expensive and precious items are in your possession.
On the flip side, if you receive items such as flat-screen televisions or other electronics that you want to insure, a grouped-together insurance policy might be the best option. Your independent agent will be able to guide you through the steps you need to take to properly cover your valuables after this holiday season.
© 2016 Selective Insurance Group, Inc
About Overmyer Hall Associates
Overmyer Hall Associates is one of the fastest growing agencies in the country, quickly becoming one of the largest property and casualty insurance agencies in Central Ohio. Recently awarded Columbus Business First "Fast 50" and "Best Places to Work" awards and Columbus CEO Magazine recognized it as the “Best Insurance Broker” in Columbus, Ohio. Overmyer Hall Associates provides clients with insurance and risk management, specializing in Commercial Insurance, Surety Bonds, and Home & Auto Insurance. www.oh-ins.com