Finding the perfect gift for your partner is a tradition upheld by many for Valentine’s Day. However, it’s important to remember when it comes to insurance, certain gifts and precious items you’re planning to give your Valentine this year may need additional coverage.
Most home insurance policies include coverage of your home’s belongings. However, there are sometimes sub-limits or secondary limits within contents coverage that are for a particular item, or type of loss. A sub-limit refers to the fact that standard coverage on a policy exists for certain items, up to a predetermined limit. A good example of a sub-limit is one that applies to jewelry for theft because jewelry can be a high-theft item. The standard coverage on a policy for jewelry is $6,000, however if you have an expensive piece of jewelry or a collection of more expensive jewelry, you or your Valentine would have to purchase a separate endorsement and provide an appraisal confirming that it is of higher value. Without purchasing the endorsement, the collective cost of all items higher in value than the standard policy sub-limit collectively, would only receive compensation up to the sub-limit amount if a claim was made. The remainder of value would be out of your own pocket. If your Valentine doesn’t live in your home, it may be something to consider when purchasing an expensive gift as it would fall under their insurance policy. Customers should always consider speaking with their broker to help ensure items with sub-limits are protected for their true value.
Want to know if your Valentine’s valuables are covered under your home insurance policy?
Check out these tips for choosing an appropriate appraiser to evaluate your items before speaking to your broker or agent.
- Research their credentials or ask people you trust: Choose an appraiser who has graduated from a reputable program. You can also solicit recommendations from friends and colleagues, or ask the jeweler where you bought the item for recommendations
- Be wary of prices that are “too-good-to-be-true”: Some appraisers offer their services at a low cost, or even free. Recognize that a competent professional appraiser will charge suitable rates for the work involved to do the job well
- Submit your appraisals to your broker or agent: If you get your jewelry appraised, it’s a good idea to submit the value to your broker or agent within a year, as the value of items may change over time.
Whether you have questions about your Valentine’s Day gifts, or general questions about your home’s coverage, being detailed about your items and reaching out to your insurance broker or agent can help you ensure you have the right coverage on your policy. You can also visit our website to see more details about how to protect your home.