So, most people aren’t aware of all the coverages that their homeowners insurance coverage can or does cover. Believe it or not, there are a slew of small coverages that your homeowner’s insurance may cover that can be of a significant nature.

Typically, there are small amounts of coverage for things like jewelry, guns, collections, etc. These are included on the policies, but those amounts are quite limited. So, if you have a 25k bourbon collection for example, then the policy may only pay out $500 UNLESS itemized for full value or possibly nothing at all with certain companies.

THE IMPORTANCE OF ITEMIZATION

When it comes to collections, itemization is extremely important. The fact is that insurance companies don’t just “take your word for it” on most items. They want to substantiate items, value, etc. This protects them and validates any claim that may come in the future.

By speaking to an insurance agent, we can advise as to covering these items for the full amount of the value that they possess. Sometimes, appraisals may be required to get an accurate value and some companies may even do this service for you depending upon the item. So, it’s a win-win for you! You get an estimate and get to enjoy the  comfort of knowing that the item(s) are accurately value in the event of a loss.

WORLDWIDE COVERAGE

Your homeowners insurance policy can also extend beyond the 4 walls of your home itself. So, if your spouse loses that expensive and beautiful wedding ring while swimming in the Caribbean, it can still be covered under your homeowners insurance!

I use this example because I had a couple that this actually happened to. Other than the fact that the lady felt horrible that she had lost her precious wedding band, she was pleased to know that her husband and I had taken the time to discuss this topic and he had chosen to cover this ring on their policy. Big win for Mr Man, but a 22k loss for Mr insurance company.

COST EFFECTIVE DECISION

Making the decision to purchase collections, valuables and other things can be one of great personal satisfaction. Who doesn’t know a guy that had to have that car or those really expensive golf clubs! But most people don’t always think about losing these items to fire, accidents, floods, etc. Or maybe they think that covering them will simply cost too much, which adds to the expense of the purchase.

Either way, taking the time to speak to your insurance agent can save you a fortune on these items if they are appropriately insured and the cost WONT blow you away!

I’ll use me for example. My bourbon collection is insured for 25k on my existing homeowners policy and only added $57 a year to my annual premium! Cost-effective, inexpensive and well worth it!! Theft and house fires happen all the time, but I know that the investment that I have made is covered in the event of an incident.

So, take a look at what you own and think about replacing it if it were to be lost. Would it be worth a small cost to itemize it on YOUR home insurance??

Give Michael Jacobs "MJ" a call at 865-381-9645 with any questions you may have related to itemization on your homeowner's policy.