In today’s fast-paced world, valuable belongings are prone to a wider range of risks than ever before, from high-end possessions to expensive electronics and equipment. Scheduled personal property coverage protects valuables from theft, damage, and other loss.
In situations where your homeowners or renters insurance policy is insufficient, scheduled personal property coverage gives your most valuable possessions an additional layer of security that guarantees peace of mind.
What is Scheduled Personal Property Coverage?
Scheduled personal property coverage is an endorsement, rider, or alternative coverage to renters or homeowners insurance policies. It provides adequate protection for expensive and top-quality items in the home.
One of the benefits of scheduling items is that you stand a chance of getting a broader coverage compared to what you will get under a homeowners or renters insurance policy.
For instance, scheduled personal property coverage offers protection in a situation where you accidentally lose or break your belongings. This type of situation, known as “mysterious disappearance,” is not usually covered under a standard home insurance policy.
How Does Scheduled Personal Property Insurance Work?
If you purchase scheduled personal property coverage, you will be given additional documents that contain everything you need to know about the policy. In this document, you can access information about the coverage amount for different items.
If you already have the items you want to insure in mind, you can work with your insurance company to get those items covered. To insure a personal belonging, you will be required to get the item appraised or provide a receipt that ascertains its full value.
Beyond the scope of your regular insurance, scheduled personal property coverage may also cover events like the loss or damage of an insured item.
What is Unscheduled Personal Property?
Unscheduled personal property typically includes items that are normally covered by a basic homeowners or renters insurance policy but have not been separately scheduled. Unscheduled items are subject to your policy’s deductible and coverage limit.
Examples of Valuables Covered by Scheduled Personal Property Coverage
There are various types of belongings that are covered under scheduled personal property, such as;
- Health and any other medical-related items
- Musical instruments
- Sports equipment.
- Stamp collections
- High-ticket electronics
- Expensive electronics like computer equipment and cameras
Advantages of Scheduled Personal Property Coverage
There are so many benefits you stand to enjoy if your purchase scheduled personal property coverage, some of which include:
- It offers coverage for other perils: Aside from the usual coverage specified on the policy, your personal belongings may be protected in the event of other types of perils, such as stolen or lost items.
- Full coverage for properties: By purchasing scheduled personal property coverage, you will enjoy sufficient coverage for any item or property you are insuring.
Disadvantages of Scheduled Personal Property Coverage
- Premiums can increase: Because this coverage offers adequate protection, your policy premiums may be more than what you would pay for.
- There could be expenses related to appraisals: You might be required to pay for each scheduled item’s appraisal out of pocket.
- Your insurer may impose a deductible: You might still have to pay a deductible before you can file a claim for your scheduled property.
FAQs
What’s the difference between theft and mysterious disappearance?
The major difference between theft and mysterious disappearances is evidence. If there is evidence that someone breaks into your house and carts away valuable items, then it is considered theft.
On the other hand, a mysterious disappearance mostly lacks evidence, in the sense that the item probably went missing or you don’t know where you kept it.
Why is it important to complete a home inventory?
Generally, the aim of creating a home inventory is to keep track of all the belongings in your home. It is also an effective way to find out the actual value of your prized possession.
By creating and completing a home inventory, you will be able to determine if you need to schedule other high-end items.
Aside from helping to keep track of your personal belongings, a good home inventory can help speed up your claim process.
Let’s imagine your house was damaged by fire. Your home inventory will help to highlight and report the extent of the damage incurred to your home. This will ultimately help to expedite the claim process.
Does homeowners insurance cover personal belongings?
Most homeowners insurance policies offer coverage for personal belongings in the event of fire, theft, or vandalism.
You can file a claim if any of your personal belongings are damaged due to any of these perils. Then your insurance provider will evaluate your claim to confirm if the damage is covered under your policy.
It is important to note that there are certain items that are not covered under homeowners insurance. Hence, you need to get detailed information from your insurance provider.
Request for information regarding the type of policy you bought, what it covers, and its limitations.
