How to Insure Your Valuables

How to Insure Your Valuables

All of us have possessions that are specifically valuable to us—a unique coat, a watch from a grandfather, or a musical instrument, to name a few. Sometimes that value is purely sentimental, but other times the coat, watch, or instrument has a significant market value as well. This intrinsic worth makes our valuables a target for thieves. Generally, when homes or apartments are burglarized, thieves will look around specifically for the most valuable, portable items and take only those.

In this situation, a homeowner’s or renter’s insurance policy by itself has some significant coverage limitations. Most policies will limit theft losses of valuables to $1,000 or $2,000. While this might be sufficient for some items, many valuables, especially jewelry are worth far more than the limit.

The best way to insure your valuables is through a “personal articles floater.” Its name is derived from the idea that valuables can move or “float” from place to place and the responsible owner would want coverage anywhere the valuable is lost (not just at his or her home). Typically you need an appraisal that is no more than three years old to purchase this sort of policy. If the appraisal on an engagement ring is $11,000, you would be able to purchase $11,000 worth of coverage if that ring is lost or stolen anywhere in the world.

This coverage can typically be added to your homeowner’s or renter’s insurance policy, or purchased as a stand-alone policy. We encourage all owners of the following items to consider a “personal articles floater,” as these are the items that typically have limited coverage:

  • Money, coin collections, or precious metals
  • Jewelry
  • Fine art
  • Securities and other financial instruments
  • Silverware
  • Firearms
  • Golf or sporting equipment
  • Musical instruments
  • Camera equipment

If you have questions or want to discuss the best sort of protection for your valuables, contact one of our representatives today.

James Dick, CPCU, AAI