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Maybe it's your first foray into
the art world hanging on the wall or a 50th wedding anniversary
surprise glittering around your neck. Or perhaps your most-valuable
possession is the biggest HDTV ever to loom over a living room,
complete with $10,000 sound system. If it's in your home, it's covered
by homeowners insurance, right?
Not necessarily. If your first move after bringing
home your treasure didn't include calling your insurance agent,
get moving. The last thing you want to think about is life without
the newest object of your affections.
Protect yourself by getting it on your homeowners
or renters policy, advises the nonprofit Insurance
Information Institute, a consumer information service funded
by the property and casualty insurance business. Your most expensive
possessions are at the greatest risk.
Standard policies max out early
"People think their renters or homeowners insurance will
cover them for any loss, and it just isn't true," says Loretta
Worters, spokeswoman for the Insurance Information Institute.
"If you have a high-value item, you should be
sure your insurer knows about it, has an accurate idea of its value
and has listed it on your policy."
Standard insurance policies for homeowners and renters
do cover personal items such as jewelry, furs, stamp collections,
rare coins or bundles of cash.
They protect cameras as well as antiques, silver or
art works, but normally not for the total value. Most standard policies
will only pay out $1,000 to $2,000 total on such a loss.
The answer, say experts, is to buy extra coverage
from your insurer.
Called an endorsement or a floater, the added insurance
is specifically for that diamond tennis bracelet, gold wristwatch
or valuable collection of baseball cards, rare coins or butterflies,
which must be listed and described.
"We advise people that any item worth more than
$1,000 to $2,000 should be added as an endorsement on their homeowners
policy," says Worters. You might have to pay extra, maybe a
few hundred dollars a year for a very valuable item, but the peace
of mind in knowing you will be properly reimbursed if you lose your
treasured possession is well worth it.
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