insurance

Homeowners insurance can leave home with you

Wedding disasters
Wedding disasters © Goran Bogicevic/Shutterstock.com

A hotel theft can ruin a wedding, anniversary or other special event, especially when high-priced furs, jewels or heirloom pieces are stolen.

If you have a homeowners policy, those items are probably covered. But they may not be covered enough.

"A typical homeowners policy will insure your personal possessions for between 50 (percent) and 70 percent of the insured value of your home," says Barry. "Some companies then limit that coverage amount on your possessions to 10 percent when you're away from home."

Doing the math, if your home is insured for $100,000 and your possessions are covered for half that, or $50,000, your total protection on belongings off-premises would be $5,000.

And beware: Personal property coverage also typically carries a deductible of $250, $500 or $1,000, McCummings says. Plus, insurers usually limit their liability on higher-ticket items such as jewelry and furs to between $1,000 and $2,000.

Would it make sense to try to reduce your deductible amount before a big day? "Probably not because the premium would go up so substantially that it wouldn't be worth it," says Barry.

McCummings says a better strategy might be to insure jewelry and other valuables separately.


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