Thursday, July 29th, 2010

Homeowners Policy Limits Bling Coverage

Not an Engagement Ring, but Definitely Bling!

You purchase a Homeowners, Condo, or Renters policy and assume all your stuff is covered? Well, yes it is covered, but certain types of personal property have sub-limits on amounts payable upon a loss. The most commonly seen limitation is the $1,500 restriction on Jewelry, (think Engagement Rings).

Example

Let’s say you have a standard homeowners policy with Dwelling Coverage of $200k. If personal property is written at Replacement Cost then Personal Property Coverage should be ~$150k. Now let’s say either you or your spouse have an engagement ring valued at $10k. Either you or your spouse spent a Crap-Load of time, effort, and money purchasing that engagement ring. Its every twinkle sends a flutter through your hearts as the ring’s beauty encapsulates your undying and devoted love!

To celebrate your love, you take a romantic Caribbean vacation. While delighting at the beautiful sea-side vistas, quaint village markets, and rolling island hills you realize SOMEONE SNAGGED MY ENGAGEMENT RING!!!

Guess what? That Baller $10k Rock just became $1,500 of disappointment…

Don’t let this happen to you! Understand the limitations of your Homeowners, Condo, or Renter policy. Add additional Jewelry coverage by endorsement. Most Carriers will have blanket endorsements up to $5,000. Any Jewelry valued greater $5k can be scheduled to the policy. All you will need is an appraisal.

DO NOT PROCRASTINATE! I have seen this happen to people that told me, “Oh we’ll do it when we get back from our Honeymoon…” If those don’t sound like famous last words.

Here is a list of other Common Special Limitations (These are general values each carrier has programs that differ):

$200 for Cash, Gold, Silver, Platinum, and Coins
$1,500 for theft of Jewelry, Watches, Furs, Precious Stones
$2,500 for theft of Firearms
$2,500 for Property on premise used for Business Purposes
$1,500 for Portable Electronic Device in a Vehicle
$1,500 for Watercraft
$1,500 for Trailers

“If you’d like to talk about your Insurance Risk, contact me today. We can talk about your exposure, and begin our relationship!”

Thank you,

Ryan H.

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Posted by Ryan Hanley on Friday, February 19, 2010 at 1:48 pm
Filed under Featured Content, Homeowners, Personal Insurance, Renter · Tagged with Homeowners, insurance, jewelry, renter insurance

radiesse

I have always found this very hard to accept but when accepting it as the very truth of Almighty God I have then discovered it to be so exceedingly helpful, particularly when our path is rough, thorny and steep
Cielito Villanueva

This is a good idea Ryan. Although there are many important things to note on an insurance policy, the special limitations section in the wordings is something a good broker will always bring forth to the client. Even if it is not in detail, one should at least tell a client to read it if anything in there is relevant. On another note, I think underwriters, brokers, and lawyers should form a committee to create wordings in a structure and language that is aimed at the general public while still maintaining an effective legal contract. It's just not practical for individuals or families to hire a lawyer to review an insurance contract. This would set insurance apart from other financial services, but this may just be a pipe dream.
Life Insurance BC

Thank you for all the great posts from last year! I look forward to reading your blog, because they are always full of information that I can put to use. Thank you again, and God bless you in 2010.
Ryan Hanley

Thank you so much! I love to hear ideas about what you would like read about!

Thank you again and thank you for reading!
bbrian017

Ryan thanks so much for the heads up on this one. I'm going to be calling my insurance company on Monday to see if I'm in the same boat. If so I'm going to increase my policy. Man insurance companies are such scammers. They will do anything to get out of paying. All they care about is profits it's very sad.
Ryan Hanley

Brian,

Very good idea. However, don't think about it as Insurance Companies scamming people. How easy is it for someone to say "Oh, my $15k engagement ring was Stolen, New one Please Now!"

This way insurance companies know what is going on and how much jewelry someone has in the event of a loss. The honus is on the Agent to get the Jewelry scheduled...

Also remember that some Insurance Carriers have better jewelry rates than others... so shop around...
Focus_Mike

Also worth noting, guys, prior to marriage it's typically the bride to be's responsibility to get the ring covered on her renters/homeowners insurance. Most insurance companies can insure the ring for you while it's still in the box, but once you give it to her she'll need it covered on her policy.
Cielito Villanueva

That's something I did not know. I'm going to look that up now. I'm in Canada so I don't know if the same rules apply.
Ryan Hanley

Mike,

That is a great point! Recently I have worked with quite a few new couples that had already bought a place together so that is where this post was coming from. But understanding the coverage before your on the same policy is excellent!

Thanks!