Just because you have insurance doesn’t mean that you have the exact kind that you want. Or rather, just because you have insurance doesn’t necessarily mean that everything you have is actually protected in case of unforeseen events. You might think that your plan is going to be full coverage, but unless you look into the specific wording of your policy then you could actually wind up having some pretty serious legal gaps.
When it comes to absolutely making sure that your most prized and sentimental possessions are actually insured, then pay special attention to all of the following steps.
Know What You Are Getting
This part is the blanket statement that everyone will say, but that’s because it is the most important. Not only do you need to know what you are covering down to a T, but you also need to verify what you aren’t getting protection for. Policy exclusions could be problematic, and limits are just another way of limiting your coverage. Insurance confuses consumers according to a report by Nationwide, to the point where some people don’t even know where to start. More than anything you’ll want to give yourself a policy audit from time to time because while you may not have had a significant number of possessions years ago, your items and their collective worth have likely increased over the years.
When it comes to general valuables, you might find that your electronics, jewelry and wardrobe already takes up the full contents coverage. So, in the event of a full claim, what happens to the priceless antiques and heirlooms that you inherited from your parents? You need to be sure your limits are adequate and in order to do so you should compare homeowners insurance quotes to verify that you are getting the most comprehensive as well as the best quality insurance around.
Extensions and Limits for Specific Categories
The next thing you need to verify is what your specific limits are while also remembering to include the extensions and exclusions. An extension to a plan is just an additional endorsement that typically throws in more benefits. On the other hand, an exclusion is going to give you something that the package will specifically prohibit or not give you coverage for.
While there aren’t too many major items to be aware of with respect to exclusions, you would hate to be unaware of, say, a fireworks exclusion that denies you coverage as you realize your entire Fourth of July stock has been stolen overnight from your garage.
Extensions can oftentimes offer greater benefits than the standard package itself. A general homeowners package may throw in contents coverage but may only take guns or jewelry up to $10,000 as an arbitrary number. While $10,000 might not be a worry when you’re just starting out, as you get older you could be spending that much on a single piece of jewelry or firearm. The last thing you’d want to do is have $50,000 worth of losses in one of those categories and then realize that the claim doesn’t pay any more than the stated $10,000. Verify that you have everything in place and know what your plan will (and won’t) pay for.
Any Proof?
The hardest thing that you’ll have to do is to prove you have big-ticket items. If your policy says it will pay you for an amount of up to $1,000 for any given piece of artwork, then what happens when you lose a $10,000 painting due to a claim? If you think about what your big-ticket items are in advance, then you know that appraisals are needed, as stated by ConsumerReports. In addition, evidence of your items should be scheduled with the company so that you can receive every single dollar back in the event of a claim.
Know What Each Policy Covers
Finally, just because you have a certain package doesn’t necessarily mean it is the best plan. For example, if you have Uncle Ted’s 1969 Mustang held up in storage in the garage and you think it’s accounted for under your homeowners policy, then you’re likely to be disappointed. An auto must be accounted for under an auto policy if it has plates and is street legal, but you also may want to try and include it under an antique car policy. Many other items that you have may or may not be paid for under a given plan, but you’ll want to ensure coverage exists and that you are paying the best rates for it.
When it comes to insurance for your prized family heirlooms, don’t rest until you have conclusive answers from your insurance company. As long as you can verify your heirlooms up front, document everything, and then compare supplemental coverages to be sure you’re getting the best rates, then your heirloom and possession insurance should be good to go.
About Jammie Morey
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