While you’re spring cleaning this year, it’ll be a great time to evaluate your insurance. You may have received valuable gifts over the holidays or purchased valuables in the past year that need to be insured. Your homeowners insurance will cover certain risks, but it’s time to be sure that your new items, including any jewelry, antiques, art, etc., are certainly covered. So, if you are wondering how to make sure your valuables are insured, read on!

The insurance experts at the Equifax Finance blog explain what to look for in a policy and be sure that you get the right coverage in the recent article, “Shopping for Insurance? Five Things to Remember When Insuring Valuables.”

Each homeowners insurance policy is different, so contact your insurance agent for more information, but most homeowners insurance will be limited in what it covers; it may not cover accidental loss of an item, is generally not based of the replacement cost of an item and is subject to your deductible, is usually based on a lump sum and has a per-item limit.

If your homeowners insurance doesn’t offer enough coverage for your valuables, the article recommends that you should consider purchasing a personal articles floater policy (PAF), which will allow you to schedule each valuable item and offer a specific limit to that item. PAF coverage will be worldwide and all-risk, not subject to a deductible, and it can provide replacement, repair, or cash-out options.

If you decide to insure your valuables separately, follow these steps:

  1. Certify the value of the item with the insurance company with an appraisal from the store that sold you the item.
  2. Be certain that your PAF policy will reimburse you for the stated amount to ensure that you will receive the entire limit listed in your policy without any negotiations if you file a claim.
  3. Find out whether or not your policy includes automatic coverage increases, which keeps up with rising costs on items (and provides adequate protection) without requiring re-appraisals every year.
  4. Keep in mind that your insurance may not kick it immediately, as ensuring higher priced valuables is a more detailed and challenging process.
  5. For some items, an appraisal may not be possible. If this is the case for any of your items, look into adding a blanket valuable items rider. These provide all-risk, worldwide coverage with no deductible, but may have a per item limit.

Great information provided by Atlanta Real Estate Forum

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