Have you ever faced a situation where you misplace or damage a valuable item in your possession, only to find out that it’s not covered in your homeowner’s policy? God forbid if such a thing happens! The agony you feel in such situations ie real. For example, your engagement ring, an item that’s not only valuable in terms of money but also emotions. It’s a priceless possession that you simply can’t afford to lose. But what if you misplace it, or it gets stolen? Does your general homeowner’s policy replace such items?
Most policies don’t! And it’s unpleasant when you do find that out. So, what should you do?
You can get such priceless possessions insured by opting for the ‘valuable’ property insurance, which covers such items specifically. Insurers may not tell you, while providing the general homeowners’ insurance, about the items it covers and those it doesn’t. Further, you may not read all the policy documents from tip to toe. If such a situation arises, where you realize that the precious item you just lost (or damaged) can’t be replaced through the policy, you’re likely to feel shocked and betrayed.
You can avoid such shocks by getting valuable property insurance. Here’s more about what that is.
What is valuable property insurance?
It’s a type of personal property insurance that covers extremely valuable possessions, for example, items over $2,500, if they get lost, damaged, or stolen. While opting for this insurance cover, you have to describe your valuable possessions to the insurer along with their right values and provide proof of ownership and the appraised value for each of them. The insurer will help create a personalized cover for those items, and if ever you want to include some other items in the list, you have to inform your insurer, who will determine the new premium amount for the same.
With both the personal property insurance and the valuable property insurance working full time to protect your assets, you can sleep peacefully without worrying about misplacing, losing, or damaging them accidentally.
What can you cover with the VPI?
Generally, the valuable property insurance is bought to cover valuable items that have limited coverage on your typical homeowners policy. They usually don’t have any deductible, and you will have to pay an annual premium for the same.
Some of the items that can be covered by the policy have been categorized below.
Jewelry and precious stones
Diamonds, platinum jewelry, gold, silver, and every precious thing out there can be covered by this policy. All you have to do is provide a detailed list to your insurance company about each item and their documents to help the insurer personalize the policy for you. Items such as engagement rings, pendants, precious stones, and souvenirs can also be included in the list and covered. Make sure you have ownership evidence and appraised value proof for each item.
Some antique musical instruments can clock in well beyond $2,500. If you have such items in your possession, it’s best to cover them under the policy to prevent the hassles of getting them replaced, in case they get stolen or damaged. So if you have a La Mort Du Cygne or a Lady Blunt in your house, make sure they are properly covered by the policy to compensate any loss.
For a philatelist, nothing can be more precious than his/her stamp collection, which s/he has created over the years. Losing or misplacing it can be quite devastating. But you can cover the losses and be compensated for the same through the valuable property insurance.
If you’re a professional music composer, you may have a range of expensive sound equipment in your possession. You can make a list of all those equipment and ask your insurer to create a valuable property insurance cover for the same.
Do you have a licensed firearm in your possession? You could get it insured. Although it can be a matter of huge concern if you lose it, or someone steals it, you can at least replace it or get compensated properly for the monetary loss. However, don’t forget to inform the police regarding any such incident.
Silverware, precious China and crystals
Many people accumulate precious stuff as a part of life. Their collection may consist of valuable china, souvenirs, antique items, silverware, and so on, which need to be protected against theft or loss. The valuable property insurance can come of great use here, but make sure you provide a detailed list of all your belongings to the insurer beforehand.
Expensive computer equipment
Do you have a home office? You may then have some expensive computer equipment like servers, hard drives, multimedia, and other stuff in your possession. Do you know you can even cover such items in the valuable insurance policy and protect them against theft, loss, or damage? Well, you can, and it’s high time you do so.
You can also cover valuable sports equipment, precious watches, original fur, and other items with the VPI coverage. Losing such priceless possessions is quite harrowing and we hope you don’t have such an experience. But it’s important to stay prepared, right? That’s what valuable property insurance helps you achieve.