Supplemental insurance cover for your valuable belongings - Do you actually need it?
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by: jerrywestmier123
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Word Count: 504
Date: Tue, 25 Jan 2011 Time: 2:14 PM
But even though you are covered for such items within the limits of the risks included in your policy, there are actually usually low caps on reimbursement for almost all of such items. Your insurance company won't pay a dime more than the amount stated in your policy (And the normal insurance coverage sum is usually low).
For example, your normal policy might not compensate anything more than $1,500 if you record the stealing of 1 piece of jewellery, no matter how much more it's value. So if you consider this case you'd believe me that it's completely inadequate for someone who has something that's worth $50k.
Definitely, you won't be glad to get $1,500 in such a situation. Accordingly, you'll need extra coverage. You have a couple of options for increasing protection to something more acceptable for your situation...
You can purchase floater policies for a specified piece or things or you may raise the limit of the liability on your basic policy. If you prefer the cheaper solution, then you can go for increasing the limit of liability.
Just be aware that your limit should be at least 150% more than your most valuable item. Here is why this is recommended: If you raise the limit of the liability to $20k then you might only be able to claim a maximum of about $8k on any single object.
You will need to talk about this in details with your insurance company so that you may select the right limit for your situation. Do not also forget that in such cases, losses covered up are still limited to risks that are included in your policy.
That other option might be far more expensive but it simply makes more sense for folks who own very precious pieces because it offers you much more safety and is not restricted to risks in your basic policy. Actually, it covers any sort of loss (including accidentally flushing it (say, a ring) down the drain).
This alternative is preserving each item by purchasing floater policies. These have more complicated requirements, though. The item to be insured has to be estimated by a professional first. This will likely cost money but it is going to be money spent well.
But having mentioned all, do not forget to request information from your agent. Purchasing household insurance might be tricky since we all have our peculiarities once it comes to our valuables. You should be sure you are sufficiently covered.
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