While a standard homeowners policy typically provides coverage for personal property, it sets limits on how much it will cover for certain valuables, such as jewelry, art, musical instruments, and other collectibles. If you own expensive valuables, you should list these items separately on your homeowner policy and pay an extra premium to insure for accidental loss or mysterious disappearance. Valuables that are listed separately on a homeowner or renters policy with a separate premium are known as “scheduled property.”
What is scheduled personal property?
Scheduled personal property is an optional add-on coverage to a homeowner or renters insurance policy that increases the limits on specific high-value items for more protection. In order to schedule valuables on your property policy, you must provide an appraisal or receipt to your insurance company verifying the value of the item you are listing on your policy. In most cases, the insurance company will require the receipt or appraisal be dated within 3 years.
While scheduling items will cost a slightly higher premium, there is broader protection for loss of scheduled items, such as coverage for accidental loss (i.e. dropping your wedding ring down the drain) or mysterious disappearance.
If you file a theft claim for an un-scheduled valuable on your policy, you would have to pay your normal homeowner deductible before your insurance company would pay you of the stolen item, and you would have to provide a police report to your insurance company. On standard homeowner policies, insurance companies set limits for jewelry claims, such as $1000 per piece of jewelry (after you meet your deductible) and $5000 total for all jewelry lost or stolen. Each insurance company has different limits and coverages on policies, so you should check with your own insurance company to find out limits on your policy for jewelry and other valuables.
You can choose a lower or even a $0 deductible for scheduled items. When you file a claim for loss of a scheduled item, your deductible is usually less than your standard homeowner deductible (via Allstate).
Insurance companies also set limits on how much you can insure each scheduled item on a property policy. For example, if your total personal property coverage on your homeowner policy is $200,000, your insurance company may not allow one scheduled item to be valued at more than 10% of the total property coverage ($20,000 in this example). Each insurance company has different guidelines regarding scheduled property, so it’s important to check with your own insurance company regarding rules on scheduled property.
Have questions about scheduling an item on your homeowner insurance? Give me a call! I would be happy to walk you through the process.