The classic line, “You don’t know what you got ‘til it’s gone,” is an important reminder when it comes to insuring your home and all of your belongings. The wedding ring of your dreams and your prized sneaker collection are considered personal property, but they are more valuable than what your standard homeowners insurance may cover – that’s where scheduled personal property comes in.
Scheduled personal property is an add-on for your standard homeowners insurance policy. This coverage – also known as an endorsement, floater or rider – covers your specialty, valuable items including:
- Musical instruments
- Sporting equipment
- Vinyl records
“Most homeowners and renters don’t realize the value of their personal belongings outside of their expensive TV or furniture,” said Chris O’Rourke, vice president of property claims at Mercury Insurance. “Family heirlooms, one-of-a-kind, limited edition sneakers and the authenticated painting sitting in your attic may all be incredibly valuable and therefore deserve ample coverage under your homeowners insurance policy. A great place to start is by taking inventory of your home and collecting your receipts, if any, for those valuable items.”
Scheduled personal property coverage can be added to your homeowners insurance policy to ensure your valuables are broadly covered in most events of loss or damage. A standard homeowners policy is often limited in the amount available to reimburse you for a loss by theft or damage. For example, imagine that your wedding ring was stolen. The ring was valued at $5,000, but your policy coverage limit is $1,500, meaning you’re underinsured by several thousand dollars. Sentimental value is irreplaceable, but a scheduled personal property endorsement can help ease the financial burden of your loss.
A standard homeowners policy often covers these categories:
- Your physical home structure
- Additional structures on your property
- Personal property
- Additional Living Expense
- Personal liability and medical coverage
However, personal property coverage is often limited to clothing, shoes, furniture and appliances. These items are also referred to as unscheduled personal property as they have not been specifically itemized but are still subject to standard coverage limits.
The proposed value of each additional insured item will vary by the insurance provider, but most providers will require a receipt or an appraisal before providing scheduled personal property coverage. Consult with your agent to discuss the status of your current homeowners insurance policy and learn more about scheduled personal property coverage.