In light of 2011’s many local weather disasters, this may be a good time to review the coverage you have on your tangible property and your dwelling. Many homeowners’ policies do not provide for significant coverage in the event of a loss except for $500 for tangible property that is not separately scheduled and appraised.
Naturally, if these items are appraised and insured, there would be an additional premium. With the prices of commodities rising, gold, silver, diamonds, platinum, and many precious possessions have increased significantly in value, and these items will not be replaced, except up to $500 in total in the event of a loss.
Some standard homeowners’ policies include coverage up to $1,000 or $2,000, but even this is often far less than what is necessary. It is important to obtain a valid and updated appraisal on your tangible property such as art, antiques, furs, wine, collections, and jewelry. Following appraisal, your policies should be updated to include coverage for these individual items, so if there is a significant casualty loss, such as a storm fire, flood, or burglary, these items will be insured.
You can add protection for individual items with a rider called a floater. The premium depends upon the risk and location, so it may be cheaper to insure jewelry stored in a bank safe deposit box than the same items kept at home. You may also consider buying blanket coverage to have higher limits on certain items, such as furs and art. Before automatically having all your valuables insured, however, it may be more cost effective to consider the individual value of your items and then determine insurance cost by selecting coverage for your most important pieces.
You should review your tangible property insurance needs periodically, along with the rest of your financial planning, such as estate planning documents, life insurance, disability insurance, etc.
Hyman G. Darling, Esq
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