Homeowner’s insurance policies have limitations on coverage for higher value items like antiques, jewelry, furs, guns, musical instruments, silverware, collections etc. These items can be insured on an Inland Marine policy that is attached to your Homeowners insurance policy. There are some options available when insuring scheduled items:
Agreed Value or Actual Cash Value – An Agreed Value policy guarantees the policy will pay the full insured amount of the item – with no depreciation – in case of a covered total loss. An actual cash value policy (sometimes called stated amount or maximum limit of liability) does not promise to pay this stated amount. In the event of a covered total loss, it may pay less than the stated amount, as the insurer has the right to pay the lesser of your item’s depreciated actual cash value (ACV) or its replacement cost. Also, many insurers that offer actual cash value policies require periodic appraisals to substantiate the insured amount,
Agreed value coverage is based on a stated value one pays what you have it insured for while the other may depreciate it at the time of a loss
Scheduled or Blanket Items – you can insure a class of items such as Blanket Jewelry or Schedule each item such as 1 Ladies Diamond Engagement ring. Typically blanket coverage has a sub limit it will pay a max on any one item.
Breakage coverage – Accidental damage coverage is for loss or damage of an accidental nature, such as knocking a can of paint over, destroying a carpet, or smashing a valuable vase. Breakage coverage included in some policies and is an option on others. Talk to us to be sure to have the coverage that is right for you.