Published: July 2016
Q: What is scheduled personal property coverage? Do I really need the additional coverage?
A: Scheduled personal property is an optional coverage you can add to your homeowners, renters or condo insurance policy. Steven James, an Allstate agent in Jackson, Mississippi, says it may help provide protection for specific, high-value items that may have limited coverage under a standard policy. He explains how scheduled personal property coverage may help protect some of your most prized possessions.
The standard coverage that is part of a homeowners, renters or condo insurance policy typically offers some protection for your personal belongings. As James notes, though, along with limits on the amount of personal property coverage, policies usually set a dollar limit on how much coverage is provided for certain items, such as art, jewelry or musical instruments.
"Suppose your homeowners policy includes $50,000 in personal property coverage. You'll likely find that your policy sets dollar limits on certain types of valuables, for certain losses, like jewelry theft. For example, up to $1,000 per piece of stolen jewelry. So, if you have a wedding band that's worth $10,000, and it's stolen, you'd likely be reimbursed for only a fraction of its value."
Having scheduled personal property may help more fully protect you against situations like the one above. "This coverage allows you to expand protection for things like expensive jewelry, art or antiques," says James. If you have purchase scheduled personal property coverage for your wedding band, you'd likely be reimbursed for the appraised value of the stolen ring. Similarly, if your baby grand piano is destroyed in a fire, this coverage may help you pay to replace it.
Even if you don't think you own items that warrant purchasing additional coverage, consider the costs of replacing items like an engagement rings or antiques. You may want to review your policy limits to see what amount of coverage, if any, your standard policy would provide if these belongings are damaged by a covered peril. If the standard coverage is lower than the actual value of your items, you may want to consider scheduling specific items.
Scheduled personal property may also be covered for additional risks, including accidental loss, which typically isn't something covered by a standard homeowners policy.
"To schedule property, you need proof of its value. Usually, that proof comes from a receipt or professional appraisal," says James. Providing this information to your insurance company may help determine how much additional coverage you need to protect an item for its purchase price or appraised value, as well as how much that coverage may cost.
"When you schedule personal property, you're helping protect your investment in the valuables you own. That's the bottom line," says James.
If you have questions about the protection your homeowners, renters or condo policy provides for your high-value belongings, or you'd like to schedule personal property, talk to a local agent.
purchase price or appraised value, as well as how much that coverage may cost.