03/12/11

Know Your Limits

You’re on vacation in Hawaii.  You look down at your hand and realize your $10,000 wedding ring is missing.  No problem, it’s covered under your homeowners policy, right?  Wrong.  You call your insurance company only to learn that “mysterious disappearance” is not a covered cause of loss on your homeowners policy but even if it was, there is a limit of only $1,500 for jewelry.

Did you know that most homeowners policies have limits for items like jewelry, silver and firearms?  Not all policies are created equal.  These limits vary from carrier to carrier and even within carriers depending on the type of homeowners policy you have.

Chubb “Deluxe”

Hartford “Silver Package”

Safeco “NQ Plus”

Travelers “Platinum”

Jewelry

5,000

1,500

3,000

3,000

Firearms

5,000

2,500

No Limit

3,500

Silver

10,000

2,500

3,000

4,000

 

Discuss your valuables with your insurance agent.  There are likely endorsements you can add or additional “Valuable Articles” policies that can be purchased to properly insure your valuables.  These endorsements or additional policies often do more than just increase the limit paid by your insurance company.  They may also elimate your deductible and be covered for more loss situations than your standard Homeowners policy  (ex. “mysterious disappearance”).  If  you have questions about your limits please give us a call (503) 227-1771.

Note:  typically, only items worth $10,000 or more will require a recent appraisal before insuring.