Every basic home insurance policy comes with some personal property coverage. But a standard homeowner’s policy does not cover all types of property and sets limits on the amounts it will pay for certain types of losses.
Insurers have solved this problem by offering policy holders the option of scheduled personal property coverage. This endorsement can be added to your homeownerís insurance coverage, providing you extra coverage for valuable property items you specifically list. Some examples of items you can schedule on this type of endorsement include fine furs, antiques, paintings, guns, and expensive jewelry.
To schedule your item, you will need to obtain an appraisal from an expert. This may be a jeweler or a rare coin dealer. You will submit the appraisal to the insurance company with your request to have the item scheduled on the policy. Your insurance company must agree to the value before they will endorse the item.
Scheduled personal property coverage offers three distinct advantages over just a standard insurance policy.
- Replacement cost value Scheduled items are covered on a replacement cost basis, rather than cash value. A standard homeownerís policy covers losses to personal property on an actual cash value basis. Insurance companies determine actual cash value by taking the cost to replace an item and subtracting depreciation for each year of the articleís age. With replacement cost, you get the real cost to replace the damaged or lost item, based on the appraisal you submitted when you scheduled the item, or based on a new appraisal you obtain after the incident, without a deduction for depreciation.
- Covers more causes of loss Scheduled property covers more perils than a standard homeowner’s policy. By scheduling your valuable property items, you gain coverage for almost anything that might happen. Even if you just lose a set of earrings, you can put in a claim.
- No deductible With scheduled personal property coverage, you are not responsible for paying a deductible on any of your scheduled items.
Be aware that most insurance companies set limits on scheduled personal property coverage. Any items you own that are valued above that limit would have to be insured separately. Policies can also set per-item limits that might also force you to seek out additional insurance coverage.