Homeowners Policy Limits Bling Coverage

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

Not an Engagement Ring, but Definitely Bling!

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

Disclaimer:

This article is for informational purposely only. There is no legal advice being suggested or proffered and the author assumes no responsibility or liability for the actions take or not taken by the readers based upon such information.

Thank you,

Ryan H.

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