Insuring Tokens of Affection and Other Precious Possessions

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February 6, 2012
A History of the Home of Duncan Financial Group
February 10, 2012

Insuring Tokens of Affection and Other Precious Possessions

It’s the time of year when romance is in the air, but tender feelings could prove costly for couples who are moving toward marriage. According to one industry survey, the average price of a new engagement ring was $5,200 in 2010, and 12% of couples spent more than $8,000. For young couples starting their lives together, an engagement ring may be one of their most valuable possessions.

Do you have cherished jewelry or other items that would be expensive (or impossible) to replace? Most homeowners, condominium, and renters policies have limited coverage for your personal property. Adding an endorsement (or floater) to your policy (or a separate personal property policy) may provide additional coverage for especially valuable articles.

Pricey Personal Property

Basic homeowners, condo, and renters policies commonly have a maximum coverage limit for the combined value of certain property. Theft of jewelry, for example, may be limited to $1,000 or $1,500. There are other disadvantages to the personal property coverage in standard policies, including the fact that they generally protect you only from certain incidents (damage or accidental loss are typically excluded) and may be subject to a high deductible.

A Scheduled Personal Property, or SPP, endorsement to your homeowners, condominium, or renters policy can be customized to cover single items or a class of luxury goods, and it typically covers more incidents (except those that are specifically excluded), including theft, mysterious disappearance, and sudden, accidental loss. Examples of classes of personal property other than jewelry include silverware, computers, cameras, sporting goods, guns, musical instruments, fine art and antiques, coin or stamp collections, and other valuable collectibles.

So if your golf clubs never make it back from Hawaii, your diamond engagement ring is lost in the ocean, or your notebook computer accidentally takes a tumble, an SPP endorsement could help you recover the full replacement value, up to your policy limits. And your claim could be subject to little or no deductible.

Duncan Financial is here for you and your family no matter what part of your life you are in. We change as you need. Stop in or contact us today to find out what else we can do for you.