A lot of homeowner’s insurance offers limited coverage for personal items such as furniture, appliances, clothes and often excludes or provides little coverage for more expensive items.
With the passage of time and as your home grows, it is possible to lose track of what you own and how much they are worth. This puts your possessions at risk from theft, fire or flood damage. Taking regular inventory and calculating the cost of personal items, therefore, becomes necessary as you can have an idea of the valuables and possessions you are safeguarding in your home.
What Does Homeowners Insurance Cover?
Generally, homeowners insurance will cover gadgets such as tablets, computers and so on but this coverage is limited and will only cover these type of gadgets if they are in your home.
While this is perfect for fixed gadgets such as toasters, game consoles or TV, it isn’t ideal for gadgets like headphones and tablets that move around with you.
Since the outside of the house is the most likely place to damage or lose a gadget, it makes sense that you’ll need a cover other than home insurance. That’s where gadget and mobile phone insurance come in, or simply an upgrade to your existing home insurance.
Since you are more likely to have your gadget damaged or lost when you are out and about, additional coverage is required. A mobile phone or gadget insurance is an option. Another great option is to purchase a Valuable items insurance.
What Is Valuable Items Insurance Cover?
A valuable insurance policy provides additional coverage for valuable items that might not be covered by your home insurance policy. Please note, this cover provides limited coverage for expensive things such as furs, silverware and guns.
Accidents are bound to happen and depending on the cost of your valuable this policy can provide thousands of dollars in savings.
A valuable Insurance policy doesn’t just protect your items in the event of a loss from theft, flood or fire but also provides coverage for damages such as a chipped antique vase. Purchasing a valuable items insurance policy will also open up higher coverage limits to you.
Some Items covered by this policy includes:
- Jewellery and Clothes
- Musical Equipment
- Crystals and Fine China
- Collectables such as coins, baseball cards, books, or stamps
- Golf Equipment
- Furniture – wardrobes, bed frames, sofas, dining tables sets.
- Soft furnishings – curtains, bedding and cushions.
- Entertainment – Cds, books, videos games
- Kitchenware – cutlery, pots, pans.
- Antiques, ornaments and Toys.
Why You Need Valuable Content Insurance
Valuable Content Insurance is important as it provides cover for your valuable belongings (not protected by home insurance) against flood damage, theft or fire. What this means is that, if you ever fall victim to any of the above-mentioned circumstances you would have adequate coverage to replace all the belonging you might have lost.
Please note: content in this context refers to possessions that you can carry along if you move houses such as furniture, clothes and so on.
How Valuable Insurance Policy Works
If you’ve decided to get a valuable items insurance policy, you will need to prepare an inventory of your personal items.
To get coverage by an insurance provider, each listed item must have an appraisal value(in some instances your insurance provider might require a recent copy of appraisal) and come with a detailed description.
You will be required to schedule smaller items under ‘blanket coverage.
We recommend that you take photos of each item. Keep these and an inventory list in a safe location outside of your home. A great option for this is renting out a safety deposit box at the bank. This will help you keep track of and raise a claim on what needs to be replaced if you ever suffer a loss.
How To Raise A Claim In The Event Of A Loss
The terms for settling loss varies amongst insurance provider because the selection of items by Valuable Item Insurance cover is different.
Some providers settle lost based on a previously agreed value, others settle items based on its value at the time the loss occurred. You would need to read your coverage provision to fully understand your insurance policy.
However, most insurers use one of these two types of policy:
1. New For Old: this policy pays out the full amount required to get a new replacement of a lost item. The New for Old policy attracts a higher premium than an indemnity cover because it has higher payouts.
2. Indemnity: this policy that takes into account the tear and wear on items that you raise a
claim on. For example, if your five year old ruins a white antique rug by spilling sauce on it, any payout you’d get for the rug might be reduced because of the spill.
Is It Mandatory To Insure My Possessions?
Not at all. While a home building insurance may be required by a mortgage provider, content Insurance is not. Getting one, however, is a smart choice.