As a homeowner, you want to feel comfortable that all of your belongings in your home are protected should anything happen because one day, you come home from work to find the antique Eames coffee table (that your mother gave you) completely flattened.
Apparently, your 15 year-old thought it was a good idea to use the table as a step-up stool to grab something off the top shelf in the kitchen, and the table buckled under his athletic size. What now? You’re deductible is $500, but the table is only valued at $450. You are left with the cost to repair or, sadly, replace the table. This doesn’t have to be the case though!
This is where insurance plans come into play. But what if your insurance plan doesn’t cover everything you thought it did? What if something is damaged or stolen and it turns out to not be covered by your homeowners insurance plan? Not only are you in for a rude awakening with bad news about your damaged or stolen property, but you most likely will have to pay the full cost to replace or repair it.
Here are two coverage options available that make sure your prized possessions will be covered should they be stolen or damaged:
Replacement Cost Coverage:
With this coverage, your insurance will pay the cost to repair or replace your damaged coffee table without factoring in any deduction for depreciation. The amount of money you receive will not be any more than the replacement cost or the cost of full repair at the time of the loss.
Agreed Value Coverage:
This is coverage that you would set up with your agent, designating a specific amount for a specific possession. In this case, if you had purchased this coverage for your table, you would receive the full $450 amount if this was what was noted in the agreed upon coverage. Let’s say you had a $10,000 ring, if you scheduled this specific amount for your ring, that is the amount you would receive. With scheduling specific items, you will have broader coverage without a deductible.
Here are some examples of other items that can be scheduled specifically:
- fine art
Be sure to talk to your agent to determine the best coverage for you and your belongings. If you have something of value…protect it!